Unlawful practice of “re-aging” collections

A collection company must report the ORIGINAL date (actual month and year) the account FIRST became delinquent.  This is when the clock begins ticking.  In the following link, NCO was reporting later-than-actual delinquency dates.  This is a violation of Section 623(a)(5) of the FCRA and NCO was required to pay a $1,500,000.00 fine.

ftc.gov/opa/2004/05/ncogroup.htm

In the following links, the FTC letters explain that if an account becomes delinquent and remains continuously delinquent and is later charged off, then the ORIGINAL date is the date that the account FIRST became delinquent.  This is also referred to as the “commencement of the delinquency” date.  The delinquent account can no longer report after 7 years plus 180 days from the “commencement of the delinquency” date.

ftc.gov/os/statutes/fcra/kosmerl.htm

ftc.gov/os/statutes/fcra/johnson.htm