Legal Question in Credit and Debt Law in Texas
Selling Of Delinquent Accounts
Hello:
If I have a delinquent account through a creditor and that creditor charges the account off but, sells it to another creditor or collection agency does but, it has been 7 years since the default on the original loan does the creditor/collection agency still maintain that derogatory item on the credit report or should it be cleared once the first creditor has charged off the account?
Asked on 11/01/02, 12:21 pm
1 Answer from Attorneys
Peter Bradie
Bradie, Bradie & Bradie
Re: Selling Of Delinquent Accounts
It should be cleared, according to 15 USC 1681c.(a)(4), if it has been more than 7 years since the charge-off.
Answered on 11/01/02, 12:42 pm