Legal Question in Credit and Debt Law in Nevada

Charged off then Sold to another collection agency?

There was a small collection from a cell phone co. submitted as of year 1999. They are coming up on the end of their sixth year trying to collect and decided to ''charge-off'' the account 2nd qtr of 2005. I am now showing 3rd qtr of 2005 that the cell phone co sold the account to another collections agency. Isn't this starting the 7 year limitations cycle all over again? Is this legal to charge off a debt and ''sell the debt'' to another company trying to collect for the same account? Also, the new collections agency hasn't tried to contact me since they started reporting in July.


Asked on 9/30/05, 4:56 pm

1 Answer from Attorneys
Grenville Pridham Law Office of Grenville Pridham

Re: Charged off then Sold to another collection agency?

The 7-year period should run from the date of default on the payment or when the payment was first due. it is legal to charge it off and sell it to a debt collector, however the debt collectors are subject to the statute of limitations, which is either a four or six year period depending on how the court characterizes bill or contract. if this is on your credit report after 7 years from date of default, you should dispute entry. this will set up potential litigation under Fair Credit Reporting Act.

If debt collectors try to collect after statute of limitations has run, you need to dispute debt with them in writing. if they file a suit against you, after statute has run, that is a violation of the Fair Debt Collection Practices Act.

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Answered on 10/04/05, 6:53 pm


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