After having “non-rev” privileges with Southwest Airlines, Christy dove into the world of points and miles so she could continue traveling for free. Her other passion is personal finance, and is a cer...
Edited by: Keri Stooksbury
With years of experience in corporate marketing and as the Executive Director of the American Chamber of Commerce in Qatar, Keri is now Editor-in-Chief at UP, overseeing daily content operations and r...
2 comments
S|R
November 24, 2019
Not attempting to throw disinformation so correct me if I am wrong.
When a charge-off account has been sold (for collections) and that collection is now outside of the statute of limitations and the individual communicates/pays/recorded-phone-call with a collection agency then the statute of limitations “clock” resets for the collections in question.
I have a medical collections on my report and researched the good and bad of paying it off and found nothing positive aside from being moral, ethical and responsible. As an aside, maybe if the hospital shared those same qualities I might too.
Christy Rodriguez
November 25, 2019
Hi S/R! Once an account has been sold to a collection account, it is still considered a continuation of the original debt and therefore your clock shouldn’t be “reset” as you noted. It is actually a violation of law for a collection agency to report old past-due amounts as if they are brand new again.
Beyond the moral responsibility, we’ve noted above that many credit card/loan companies won’t take a chance on you if you still have unpaid collection accounts on your credit report. If you pay them off, they are much more likely to extend you a line of credit. Once your debt has hit 7 years and drops off your credit report, then yes – it’s more of a moral responsibility than anything else.
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