Does the reporting period get extended when a collector updates an account, or when a new collector buys a debt?
When a collector takes over a collection account they inherit the reporting period start date. Collections are supposed to stop reporting seven years plus 180 days from the original date of default. The reporting period cannot legally be reset by the transfer of a debt.
Learn to Count the Dates
The reporting period limit start date for a collection has nothing to do with the open date for the collection account that you see on your credit report. If you want to figure out when the collection will stop reporting for credit repair purposes count seven years plus 180 days from the original default date. The original default date was the date of the first missed payment in the sequence that culminated in the account being charged off by the creditor.
Always Check the Facts
On the other hand, collectors are notorious for accidentally resetting the reporting period start date. A percentage of these resets may be intentional, others may be caused by human error that might arise as the accounts are sold and re-sold. Either way, if you see a collection that is reporting beyond its limit, it’s time for credit repair.
Although a collector cannot reset the reporting period unilaterally, if you choose to enter into a payment arrangement with them, and in any manner formalize the arrangement, you will have effectively created a new contractual obligation with a new reporting period start date and statute of limitation. We advise our credit repair customers to enter into payment arrangements only if they are completely comfortable with their ability to meet the terms without fear of a second default.