I've been going over my credit reports, and a lot of sites and information, and I have some questions about the 7 year reporting period. I suspect I have some accounts that should be removed soon, but I am not sure. A few years ago I had a lot of financial problems due to medical bills that were not paid by my insurance. (Why have medical insurance when they won't pay the bills, but that is another topic all together. I have a new insurer, now.) Anyway, I just read something that indicated that the date that triggers the 7 year rule is the first 30 day late, or past due, month that preceded the chargeoff. Is that correct? I had a lot of accounts back in the late 90's and early 00's where I would be 30 days late, then 60 days late, then 30 days late, then 90 days late, then 60 days late, etc., until eventually being over 90 or even 120 days late and then being charged off. In one case, after having this pattern repeat between 2001 and 2003, with a few periods where I was current for a month.. But, eventually, I settled the account legally for less than the full balance. But, that was in 2004. The first 30 day late, however, was in 2001, and it was at least 30 days late starting in early 2002. I finally settled for less than the full amount in late 2003, and that is the date showing up as the date of status. The last payment date is listed as NOT ON RECORD. Shouldn't that be back in 2001 or 2002 at the latest? What should I do to get this resolved and/or removed from the credit report? I have a bunch of these types of situations where the date shown for last payment is either the date it was actually charged off, or is shown as not on record, even though the account may have been 30, 60, 90, 120, 150, or even 180 days late, continuously, for as much as 2 years before the listed date. Shouldn't they have to list the first date where you went continuously late, leading to a chargeoff, as the legal last date, on which the account has to be removed?
I've been trying to figure out the same kind of issues. After reading some of the law it appears that the actual amount of time you can spend on the credit bureau is seven years plus 180 days (half year). From what I read it seemed that the 180 days is a period for the creditor to make a decision on the account. Other than that, from what I have gathered it seems like countdown starts from the last month that the account was current. Here's to wishing for an affirmation. I would copy and paste the info but don't even know where I found it.
This is a great topic. I've noticed it mentioned elsewhere, but here are some thoughts. This is a credit reporting issue that was considered so poorly described that the legislative branch updated the FCRA twice to clarify it. The fully updated FCRA section 605 (c) states the 7 year period "shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action." Its a bit complex but the 180 days begins 30 days after the last payment received directly before the collection activity (qualifying action date). Essentially the straw that broke the camels back date. You may have had a 30-60-pay cycle for five years, but if the company sent you to collections or charged off the account that first time you hit 90 days, then the 180 day period began 30 days after the last payment was received. The flow would be...pmt - missed - 30 - 60 - pmt - (180days start) - 30 - 60 - 90 - Charge-off. An easier way to explain it would be that it begins at the date the first missed payment became due. This is huge for many people disputing their credit reporting dates. This allows even internal collections to be the qualifying action date. If you were ever contacted by a loss mitigation department, delinquent accounts department, or any other pleasant sounding term for collections, the 180 day period is already running. Another error that is often made is re-aging the date of last activity on a credit bureau as the account moves through the collections process. Reputable creditors tend to move through an escalating series of events. First a internal attempt to bring the account current, then a second improve or be removed department, then a collections company, then charge-off and a charge-off department, then to a law firm for suit. The date on your credit report should be from that first internal department, but most often it is the charge-off date or the date the law firm began collections efforts. Payments, while extending the state specific statute of limitations in most cases, do not update the credit reporting date. This sentiment can be found on the FTC's staff opinion letters page for the FCRA. I would suggest reading and potentially referring to them all, but for this discussion the letter written by AMASON (02-15-00) is the most appropriate. The link can be found at: http://www.ftc.gov/os/statutes/fcra/index.htm Hope this helps, and Good Luck
If you bring the account completely current, then default again, the newest default has its own 7 year period. http://www.ftc.gov/bcp/conline/pubs/buspubs/infopro.htm A consumer falls behind on monthly payments in January 1998, brings the account current in June 1998, pays on time and in full every month through October 1998, and thereafter makes no payments. The creditor charges off the account in December 1999. In this case, the most recent delinquency began when the consumer failed to make the payment due in November 1998. The earlier delinquency is irrelevant. The creditor must report the November 1998 date within 90 days of reporting the charge-off. For example, if the creditor charges off the account in December 1999, and reports this charge-off on December 31, 1999, the creditor must provide the month and year of the delinquency (i.e., "November 1998") within 90 days of December 31, 1999. However, all the 30, 60, 90 day lates that are 7 years old must fall off at 7 years. They can only continue reporting the portion of the account that falls in the 7 year period allowed. Dispute the account if any negative part of the account is older than 7 years.
