We&39;ve seen a recent increase in the number of readers writing us about old collection accounts. It seems that the collection industry has recently dug up a few dusty old files. B wrote in with a question on this topic recently:

Back in 1992, I had a Sears charge card. The account became delinquent and it was sent to a collection agency. It was on my credit report for 10 years and then it was removed. This happened in 2002. Yesterday, I received a letter from a collection agency telling me that I owe $3,960.00 on an account I had with sears over 10 years ago. Can this go back on my credit report?

Debt collectors seem to have recently discovered the fact that they can attempt to collect on old debts that have expired from credit reports and passed your state&39;s statute of limitations. They are leveraging the fact that they can still take a debtor to court for repayment of an old account (although it&39;s unlikely for a small balance).

Where does this leave B? It is illegal for the collection record to go back on a credit report after 7 years from the last 180-day late payment on the original account, but the collector may try anyway. If they do, be very quick to dispute the records. Any old documents B has to prove the account age will be helpful.

B can choose to ignore the collectors or  can attempt to negotiate a drastically reduced settlement payment. Remember, the collector purchased the debt for pennies on the dollar and stands to make a big profit if B pays. If B does settle, he sure be to get the agreement in writing before sending his payment.

Want more information? Read about dealing with collection agencies and about your rights under the Fair Debt Collection Practices Act. Next question?