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Author: joelcorley Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308858  
Subject: Re: Collection Agency Update Date: 1/7/2014 8:17 PM
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Fuskie,

You wrote, Watch out for a clock reset.

I think the issuing in the FCRA with clock reset was fixed by Congress back in 1997. I don't believe the clock can reset now unless you've somehow managed to bring the loan current. Its described in 15 USC § 1681c (c) Running of reporting period, which can be found here: http://www.law.cornell.edu/uscode/text/15/1681c

The 7 year clock begins when the account is ...placed for collection or charged to profit and loss... (This is no later than 180 days from the date the account first became delinquent.) The only way it could be reset is if the account has been rehabilitated and you default again. A partial payment won't do that. Neither will stating that you owe the debt. It seems to me the only things that could rehabilitate a debt is either through a means described in the original contract or the execution of a new contract that supersedes the old contract. Those are things you probably won't "do by accident".

- Joel
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