Can a Collection Agency Change the Open Date?

Managing debt and its impact on credit reports is a significant concern for consumers. When debt is transferred to collection agencies, it adds complexity to a consumer’s credit profile. Accurate reporting of debt information is paramount, as discrepancies can affect financial standing. Dates on a credit report, including those for debt, directly influence creditworthiness.

What the “Open Date” Represents

The “open date” for a debt on a credit report, particularly for collection accounts, refers to the Date of First Delinquency (DOFD). This date marks when an account first became delinquent and was not subsequently brought current. The DOFD is a fixed point in time and does not change, even if the debt is sold to multiple collection agencies.

The DOFD determines how long negative information can remain on a credit report under the Fair Credit Reporting Act (FCRA). Most negative items, including collection accounts and charge-offs, stay on a credit report for seven years from the DOFD. For example, if a payment was first missed in January 2020, the negative entry would be removed around January 2027. This seven-year period is a federal standard.

Beyond credit reporting, the DOFD also plays a role in state statutes of limitations for debt collection lawsuits. These statutes define the legal time frame within which a creditor or collector can sue for unpaid debt. These time limits vary by state, generally ranging from three to ten years, and are separate from the FCRA’s reporting period. A debt might be too old to be legally pursued in court but could still appear on a credit report if the seven-year reporting period has not yet expired.

Collection Agency Authority Over Dates

Collection agencies cannot legally change the original Date of First Delinquency (DOFD) of a debt. Manipulating the DOFD to make an old debt appear more recent is an illegal practice known as “re-aging.” The Fair Credit Reporting Act (FCRA) prohibits this practice, as it would unfairly extend the time negative information remains on a credit report.

When a collection agency acquires a debt, their internal records may show a “date opened” reflecting when they added the account to their portfolio. This “date opened” does not alter or restart the original DOFD of the underlying debt. The date for credit reporting purposes remains the initial DOFD from the original creditor. If a collection agency misreports the DOFD, it is a violation of federal law.

Addressing Incorrect Dates on Your Credit Report

If a consumer identifies an incorrect Date of First Delinquency or an inaccurately re-aged debt on their credit report, the Fair Credit Reporting Act (FCRA) grants the right to dispute inaccurate information with credit reporting agencies. This involves contacting the three major credit bureaus—Equifax, Experian, and TransUnion—to initiate a dispute.

Consumers should identify the disputed item, explain its inaccuracy, and request its removal or correction. Send a dispute letter via certified mail with a return receipt requested to create a record. Credit bureaus are required to investigate the dispute within 30 days and notify the information furnisher, such as the collection agency. Providing supporting documents, like original account statements, can strengthen the dispute.

Consumers can also send a debt validation letter directly to the collection agency, requesting proof of the reported dates. This action requires the collection agency to cease collection efforts until validation is provided.