Re-aging by state

Submitted by bdp on Mon, 08/24/2009 - 04:13
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Credit repair

I have been told that some states do not allow some types of accounts, open for example, to be re-aged, even if many payments have been made to the collection agency. The state would thus recognize the original charge off date as the start of the SOL. I know this might wishfull thinking but it seems quite logical. I am starting my search of the Oklahoma statutes tomorrow to try and find any law to support this but any other states would also be helpful

carol

Hi bdp

The state would thus recognize the original charge off date as the start of the SOL.

An SOL begins from the date you last had any contacts with the creditor. It could be a payment made, acknowledging an old debt etc. This will reset the clock on your debt.

I have been told that some states do not allow some types of accounts, open for example, to be re-aged, even if many payments have been made to the collection agency.

According to the Federal Financial Institutions Examination Council (FFIEC) an account must conform to the following criteria to be eligible for re-aging:

  • Borrower should show willingness and the ability to pay back the debt.
  • The debt should exist for at least 9 months
  • It should not be re-aged more than twice in a year's time.
  • Borrower should make at least 3 consecutive payments or a payment that equals the 3 monthly payments at a time.
  • Borrower must not be allowed new credit until the present debt can pass off to the pre-delinquency limit.
Mon, 08/24/2009 - 05:20 Permalink