I mean, really...every step of what re-aging is. I have no idea so the basics would be really helpful as to what it means. How is it done? Is it only for late payments so they don't look late? Can it go forward and backward? Do they re-age total accounts? Thanks! E
Re-aging typically refers to when a CA (usually) submits an account in collections and lists a date of first delinquency (DOFD) that is different from the date reported by the OC. A negative account must fall off your report 7-1/2 years after the date the account went late and was never brought current (the DOFD). That date doesn't change unless you bring it current. So, if the last payement you made to an account was 5/1/2000 and the next payment was due 6/1/2000, the account would be 30-days late on 7/1/2000 (the DOFD). If no other payment was made then this account should fall off your report on 1/1/2008 (7-1/2 years after 7/1/2000). What happens some times is a JDB will buy it and then report the date they got the account (or any other date) as the DOFD so that it will be on your CR for 7-1/2 years after that date. However, the DOFD doesn't change even if the debt has been bought 5 times. The DOFD should be the same regardless of who owns it. One legal way to re-age the debt (and reset the statute of limitations clock) is to get the customer (debtor) to make a payment. Any payment. How that works is the CA lends you the money for the debt to pay off the late amount (how generous). Now you have a new debt to the CA. That's perfectly legal and usually done without the debtor realizing it (and it's always done to "help" the debtor out...) Even if you just pay $5, that's enough to constitute "consideration" and seal a new deal that starts the day you give the nod (and your debit card number) over the phone. So, if the CA can get you to do this on an out-of-statute debt, that's a big win, because now they can sue you for the balance of the new debt amount and you can't claim "SOL" because the defining date is no longer the original DOFD, it's the date of the new agreement.
Re-aging typically refers to when a CA (usually) submits an account in collections and lists a date of first delinquency (DOFD) that is different from the date reported by the OC. A negative account must fall off your report 7-1/2 years after the date the account went late and was never brought current (the DOFD). That date doesn't change unless you bring it current. So, if the last payement you made to an account was 5/1/2000 and the next payment was due 6/1/2000, the account would be 30-days late on 7/1/2000 (the DOFD). If no other payment was made then this account should fall off your report on 1/1/2008 (7-1/2 years after 7/1/2000). What happens some times is a JDB will buy it and then report the date they got the account (or any other date) as the DOFD so that it will be on your CR for 7-1/2 years after that date. However, the DOFD doesn't change even if the debt has been bought 5 times. The DOFD should be the same regardless of who owns it. One legal way to re-age the debt (and reset the statute of limitations clock) is to get the customer (debtor) to make a payment. Any payment. How that works is the CA lends you the money for the debt to pay off the late amount (how generous). Now you have a new debt to the CA. That's perfectly legal and usually done without the debtor realizing it (and it's always done to "help" the debtor out...) Even if you just pay $5, that's enough to constitute "consideration" and seal a new deal that starts the day you give the nod (and your debit card number) over the phone. So, if the CA can get you to do this on an out-of-statute debt, that's a big win, because now they can sue you for the balance of the new debt amount and you can't claim "SOL" because the defining date is no longer the original DOFD, it's the date of the new agreement.
Can a paid debt be re-aged for some reason? Like if you dispute it with the CRA's? Also, what if you make the payment in full? Can the tradeline be re-aged then as well?
Whether or not making a payment restarts the SOL varies from state to state, so check your state laws. In a few states, even promising to make a payment can restart the clock--one more reason to do everything in writing.
And it also depends on whether you're making a payment on the original debt or on a promissory note that was used to pay off the original debt. Another reason to read before you send money (debit card number). The problem is when some well-intentioned debtor just says, "Sure, I want to do the right thing and try to pay off my debt." and ends up with a new contract/promissory note as a result. That looks good until you miss a payment and they take you to court (no more SOL defense because the old, possibly out-of-statute debt has been paid off by a new promissory note). Yet another case of no good deed going unpunished.
