3 year limit on reporting open CC?

It seems I read somewhere that if you have an open revolving account, that the creditor can only report 30 day lates for three years, or they drop off after three years, or something like that, can someone elucidate that?

Thanks

 

Okay, I knew I read it somewhere, but I don't know what she is talking about:

"Dear Nancy:
By paying off your "bad visa" account and asking them to close out your account might have done you more harm than good. The way the #34;system" works, as long as your account is open, every month the creditor will report your payment history to the Credit Reporting Agencies. Even though you might not have a balance remaining, the creditor will report no activity on your account. Any late payments noted will be removed within three years. As soon as your account is closed though, the creditor stops reporting a payment record on your account. Whatever is last reported by this creditor will remain on your file for seven years. Asking a creditor to remove this report will get you nowhere. They will not do it and the Fair Credit Reporting Act says they can report your payment record for up to seven years.

You now must live with the decision you made and hope it doesn't hinder you too much in getting credit in the future. "

http://www.debthelp.org/credit_reports.htm

Has anybody heard about this? What system is she talking about?

 

Okay, so you have heard of this? My balance is 0 and I have a 30 day late notification from 98 and one from 99. The account is open - but I would love to know WHAT she is talking about?