How to Dispute Debt Buyer Accounts on Credit Reports

If you're getting calls or letters from a debt buyer or you find a surprise collection account on your credit reports, you're not alone. Debt buyers purchase old debts from credit card companies, hospitals, and utility providers, often for a fraction of the amount due.

Old debt is a major source of confusion and financial harm to consumers, especially when acquired by debt buyers. Federal and state laws offer protections for consumers, but you need to be vigilant and know your rights. You may dispute inaccurate or re-aged items in your credit reports, respond to any lawsuits, and seek legal help if collection and reporting practices are illegal or abusive.

Understanding Debt Buyers and Their Collection Tactics

When you have an old debt, such as a credit card, hospital, or utility bill, it's common for the original creditor to sell that debt to a third party, called a "debt buyer." In many cases, the account is so old that the statute of limitations has expired (that is, it's "time-barred"). So, the debt buyer can't legally sue you for the debt. But just because a debt buyer can't sue you doesn't mean it can't try to get you to pay up voluntarily.

And debt buyers sometimes still try to sue on time-barred debt, even though it violates the law, so you should respond to any lawsuit rather than assuming the statute of limitations has passed.

Also, if a debt buyer can't sue you on an old debt, it might try other ways to get you to pay. One common collection technique is to "park" your old debt on your credit reports; it quietly reports an old debt as new on your credit reports. This tactic is also called "re-aging" a debt.

If you discover that an old debt has reappeared on your credit reports as a new account or contains inaccurate information about its age or status, it might be because a debt buyer parked the debt on your report or re-aged the status of your debt. These debt collection practices might be illegal.

What Is a Debt Buyer?

Debt buyers purchase old debts, often for pennies on the dollar, and then try to collect on those debts. Because these debts are old, legal options for collection might be limited.

What Does "Parking" or "Re-Aging" a Debt Mean?

Again, after purchasing a debt, some debt buyers might try to "park" the old debt on your credit reports, typically by reporting the debt as new, which is a tactic called "re-aging." When a debt buyer re-ages a debt, it often falsely reports new account activity, such as recent payment delinquencies, or it might alter the date of your account, such as changing the date you opened the account or last made a payment. This re-aging can be problematic because if you apply for a car loan or mortgage, the bank might think you're having trouble paying your bills.

Also, it keeps a debt on your credit reports longer than it's allowed to be there.

Why It Might Violate the FCRA?

Generally, a delinquent account can show up on your credit reports for up to seven years from the time your first delinquent payment was originally due on the account. Some debt buyers try to get around this law by misrepresenting when the debt became delinquent. Re-aging (changing the date so an old debt seems new) is illegal under the federal Fair Credit Reporting Act (FCRA). The FCRA requires consumer reporting agencies (credit bureaus) to maintain an accurate file of your credit information. The FCRA also limits how long negative information can appear on your credit reports.

But by manipulating the age of the account or the date of any delinquency, the debt buyer violates the FCRA.

How You Might Find Out About a Re-Aged Account

Debt buyers often don't alert consumers that they've reported an old debt to the credit bureaus. So, you might not find out about the reappearance of this debt until you apply for a new loan or credit card, or until you review your credit reports. You then feel pressure to pay the old debt to clear it from your credit reports so that you can get the new credit or loan approval.

How to Dispute or Remove Re-Aged Debt

If you find an old, re-aged debt on your credit reports that shouldn't be there, resist the temptation to pay it. Paying might reset the statute of limitations in some states. Even if the debt is technically still owed, it's not enforceable in court if the statute of limitations has expired. So, paying it is voluntary in that situation.

Instead, you should immediately dispute the debt by doing one or both of the following:

How to Dispute Debt Buyer Accounts Directly

State why you dispute the debt in writing (for example, it is too old to be included in your credit report) and send it directly to the debt buyer. Once the debt buyer receives your written dispute, it is required to investigate the dispute. When appropriate, it must send corrected information to the credit bureau and request that the bureau remove the incorrect negative information. (16 C.F.R. Part 660 (2025).)

How to File a Dispute With Credit Bureaus About Debt Buyer Accounts

File a dispute with the three major credit bureaus: TransUnion, Experian, and Equifax. Be sure to include all supporting documentation. The credit bureaus must reinvestigate the dispute or remove the negative information about the debt from your credit reports if it's too old to be included on them. (15 U.S.C. § 1681i (2025).)

Sample Dispute Letter and Documentation Checklist

To get a sample of letters to use to initiate a dispute with a debt buyer or credit bureau, go to the Consumer Financial Protection Bureau (CFPB) website. You can also file a dispute with the credit bureaus online.

Before sending your dispute, gather and include copies of the following items to give your dispute the best chance of success:

• Your complete contact information. Be sure to include your name, address, and phone number.
• A clear description of the item being disputed. Include account numbers and the specific reason for your dispute.
• Copies of any supporting documentation. This might include payment records or letters from the original creditor, for example. Send copies, not originals.

Keep a copy of your letter and, if you're sending it via mail, send it by some method you can track, such as certified mail.

What to Do If the Bureau Doesn't Remove the Debt

If a credit reporting agency refuses to correct inaccurate information on your credit report after you dispute it, you have several options. You can submit complaints to the CFPB and your state's consumer protection agency, or reach out to your congressional representatives for help.

When to Talk to a Lawyer About Debt Buyer Abuse or FCRA Violations

If the debt buyer or credit bureau still fails to remove the incorrect information, you might be able to sue for violations of the FCRA. If successful, you might get actual damages, punitive damages, and attorneys' fees and costs. Talk to an attorney for more information about filing a suit against a debt buyer for violating the FCRA.