Legislation now prevents most debts from being reported more than seven years after the account has been determined delinquent. That seven year period does not start until 180 days after the actual delinquency. Some debts, however, can remain 10 years or even indefinitely. Many times, a creditor would prefer a portion of the debt, rather than not receiving any money at all. If an agreement is made with a creditor, make sure to get it in writing before making any payments.
Creditors often employ the assistance of a collection agency in collecting debts.
The collection agency is regulated by the Federal Fair Debt Collection Practices Act, which means they cannot resort to threats, harassment, deception, or abuse in order to collect a debt. If a consumer does not wish to be contacted by a collection agency, the consumer should write a letter to the collector. The collection agency is then required to cease all contact. However, this does not affect the validity of a debt. What can be found on one credit record, may not be found on another.