Welcome to RegulationRoom, MsHar. While there is no law against trying to collect time-barred or obsolete debts, it is considered a deceptive practice for a collector to submit a newly purchased debt to the CRA with a new date running from the date of purchase. The Fair Credit Reporting Act states that the date runs from the date of the first delinquency not the date the debt is sold or put into collection. In your experience, would a rule that requires collectors to disclose that a debt is time-barred and the collector can't sue to collect the debt be helpful?
MsHar
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CRA's and debt collectors are in cahoots. is and not si.
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Moderator
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Welcome to RegulationRoom, MsHar. While there is no law against trying to collect time-barred or obsolete debts, it is considered a deceptive practice for a collector to submit a newly purchased debt to the CRA with a new date running from the date of purchase. The Fair Credit Reporting Act states that the date runs from the date of the first delinquency not the date the debt is sold or put into collection. In your experience, would a rule that requires collectors to disclose that a debt is time-barred and the collector can't sue to collect the debt be helpful?
View this comment in the discussion thread