Re-Aging

Re-Aging is another problem that a debt collection agency can hurt your credit report and credit score.

What is re-aging?

Re-Aging is when a debt collector reports a collection account with a more recent date such as the date the credit or debt collector first tried to collect the debt rather than the actual date the debt became delinquent. By law, the debt collector is supposed to report the date of which the debt becomes delinquent. But, this sometimes does not happen especially with low etiquette debt collection agencies and creditors.

The Federal Trade Commission and re-aging problem concerning debt collectors

The good news is that the Federal Trade Commission takes this re-aging problem seriously. The are been a few cases against debt collection agencies over the re-aging problems along with other violations of the Fair Credit Reporting Act and the Fair Debt Collection Practices Act.

The FTC vs DC Credit Services and its owner David Cohen

The FTC brought suit against DC Credit Services Inc and its owner David Cohen in the Los Angeles Federal Court on June 27, 2002. In the case of the FTC vs. DC Credit Services Inc and owner David Cohen, defendants (DC Credit Services and David Cohen) reported information about debts to credit reporting agencies using a date of delinquency other than the actual date of the delinquency that was before the date they reported.

Four days later, DC Credit Services and David Cohen settled the charges and agreed to pay a $300,000 civil penalty and to notify all the credit bureaus to delete all adverse information the collection agency reported to them over the past seven years. David Cohen is also banned from ever engaging in debt collection activity again.

So, if you have any problems with debt collection agencies, be sure to report to the FTC because, if enough people complained to the FTC about a debt collection agency or a creditor, the FTC will take action. If you need help drafting a letter to the FTC, see our letter library or contact us to request one.