We study the effect of nonlocality on the collapse properties of a self-focusing Nonlinear Schrödinger system related to Bose-Einstein condensation problems. Using a combination of moment techniques, time dependent variational methods and numerical simulations we present evidences in support of the hypothesis that nonlocal attractively interacting condensates cannot collapse when the dominant interaction term is due to finite range interactions. Instead there apppear oscillations of the wave packet with a localized component whose size is of the order of the range of interactions. We discuss the implications of the results to collapse phenomena in negative scattering length Bose-Einstein condensates.