I have a specific question about NYS credit law. I have been trying to search for the past week, but that function doesn't work. Am I reading this credit law correctly? Are these assumptions correct? Is the credit law printout I have even a real law or just a proposal for one?: 1. Unpaid collection accounts, charge offs, lates, etc. remain on your report 7 years from last delinquency. 2. Paid collections & chargeoffs remain on your account 5 years from date of last delinquency 3. Late payments listed on now current & open accounts stay on your report for 5 years from the date the account was brought current (NOT 7 years?) 4. What about a settled collection or charge off account? Is that included in the 5 years falloff or does it go 7 years? Here's what a printout I have filed in my credit folder says. I printed this out about 5 years ago and I don't know where online it came from. State of New York 6269 1997-1998 Regular Assembly In Assembly March 4, 1997 Introduced by M. of A. Eve, Greene, Cook, Pheffer-- Multi- sponsored by M. of A. Bea, Englebright, Grannis, John, McLaughlin, Perry, Ramirez, Rivera, Stringer, Wright--read once and referred to the committee on consumer affairs and protection. An act to ammend the general business law, in relation to delinquent accounts information contained in consumer credit reports THE PEOPLE OF TH STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section1. Subparagraph (iv) of paragraph 1 of subdivision (f) of section 380-j of the general business law, as amended by chapter 179 of the laws of 1979, is amended to read as follows: (iv) accounts placed for collection or charged to profit and loss which antedate the report by more than seven years FROM THE DATE THE ACCOUNT WAS FIRST DELINQUENT; OR ALL DELINQUENT ACCOUNTS THAT HAVE BEEN MADE CURRENT OR PAID AND WHICH ANTEDATE THE REPORT BY MORE THAN FIVE YEARS FROM THE DATE THE ACCOUNT WAS LAST MADE CURRENT OR PAID; or accounts placed for collection or charged to profit and loss, which have been paid and which antedate the report by more than five years; s. 2. This act shall take effect on the thirtieth day after it shave have become a law. I know I have heard before that paid collections or chargeoffs only remain on NYS credit reports for 5 years. I am really wondering if that also applies to late pays on current accounts and settlements. Please help if you can. Thanks! Luke
I too would be most interested in this. If this were true, I would be able to clean the only derog on my report that I have.
I was finally able to get the search function to work on this board and I spent 3 hours going through over 600 posts on NY law. It appears the "law" I posted above might have just been a proposal, as it doesn't exactly match the other credit laws I found previously posted. From the search I was able to gather: 1. Paid collections and paid charge offs are definitely deleted after 5 years. 2. Settled collections or charge offs seem to be a grey area, not mentioned in credit law, but some cra don't distinguish between between settled and paid and will delete them as well. I haven't found anything written about late pays on current accounts. Has anyone in NY disputed late pays listed on now current accounts for more than 5 years? I'm very curious if they will delete those as well. Maybe I'll be the first to try it! Hope that helps Luke
I can tell you that paid charge-offs and collections definetly should come off in 5 years, as you have found. I have had several paid item that have come off in 5 years includng charged-off/sold or transferred (bal. $0) student loans, even though I had to use the law on a few of them that didn't automatically come off in 5 years. As far as settled or late pays, I am really not sure. Sorry. Maybe another New Yorker knows???
Does anyone know where I can find the specifics on this law? Having this information would allow me to remove the last derog on my report.
This is from McKinney's: MCKINNEY'S CONSOLIDATED LAWS OF NEW YORK ANNOTATED GENERAL BUSINESS LAW CHAPTER 20 OF THE CONSOLIDATED LAWS ARTICLE 25--FAIR CREDIT REPORTING ACT Copr. © West Group 2002. All rights reserved. Current through L.2002, chs. 1 and 5 to 677. § 380-j. Prohibited information (a) No consumer reporting agency shall report or maintain in the file on a consumer, information: (1) relative to an arrest or a criminal charge unless there has been a criminal conviction for such offense, or unless such charges are still pending, (2) relative to a consumer's race, religion, color, ancestry or ethnic origin, or (3) which it has reason to know is inaccurate. (b) Notwithstanding the provisions of paragraph one of subdivision (a) of this section, a consumer reporting agency may collect, evaluate, prepare, use or report information relative to a detention of an individual by a retail mercantile establishment, provided that: (1) the individual has executed an uncoerced admission of wrongdoing; (2) with respect to a detention made on or after the effective date of this article [FN1] the retail mercantile establishment has, prior to transmitting to a consumer reporting agency information concerning such detention, delivered to the individual a written notice containing: (i) a statement that the information may be furnished to a consumer reporting agency, and that such information may be reported to a retail mercantile establishment for employment purposes, (ii) a statement that the individual may request disclosure by the consumer reporting agency of information in the agency's file on such individual, and that the completeness or accuracy of such information may be disputed by the individual, and (iii) the name and address of such consumer reporting agency; and (3) the user of such information certifies to the consumer reporting agency that such information will be used only in connection with employment purposes. (c) In the event that a criminal charge is filed subsequent to the detention described in subdivision (b) of this section, the disposition of such charge shall be recorded by the consumer reporting agency in the file on such individual upon the request of such individual and upon his furnishing proof of such disposition. (d) No consumer reporting agency shall issue a consumer report which lists a person as having been denied credit if the sole reason for such denial is lack of sufficient information to grant credit, unless the report states that the denial was for such reason. (e) Consumer reporting agencies shall maintain reasonable procedures designed to assure maximum possible accuracy of the information concerning the individual about whom the report relates. (f)(1) Except as authorized under paragraph two of this subdivision, no consumer reporting agency may make any consumer report containing any of the following items of information. (i) bankruptcies which, from date of adjudication of the most recent bankruptcy, antedate the report by more than fourteen years; (ii) judgments which, from date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period; or judgments which, from date of entry, having been satisfied within a five year period from such entry date, shall be removed from the report five years after such entry date; (iii) paid tax liens which, from date of payment, antedate the report by more than seven years or, a paid, satisfied or vacated tax lien involving a purchaser, transferee or assignee in a bulk sale transaction who has been deemed liable by the state tax commission for sales taxes due from a seller, transferrer or assignor under subdivision (c) of section eleven hundred forty- one of the tax law, where the receipt by a credit reporting agency from such purchaser, transferee or assignee of a notice, or true copy thereof, from the state tax commission to such purchaser, transferee or assignee that his liability has been wholly paid or satisfied or no longer exists, antedates the report by more than thirty days; (iv) accounts placed for collection or charged to profit and loss which antedate the report by more than seven years; or accounts placed for collection or charged to profit and loss, which have been paid and which antedate the report by more than five years; (v) records of conviction of crime which, from date of disposition, release, or parole, antedate the report by more than seven years; (vi) information regarding drug or alcoholic addiction where the last reported incident relating to such addiction antedates the consumer report or investigative consumer report by more than seven years; (vii) information relating to past confinement in a mental institution where the date of last confinement antedates the report by more than seven years; or (viii) any other adverse information which antedates the report by more than seven years. (2) The provisions of this subdivision shall not apply to: (i) a credit transaction involving, or which may reasonably be expected to involve, a principal amount of fifty thousand dollars or more; (ii) the underwriting of life insurance involving, or which may reasonably be expected to involve, a face amount of fifty thousand dollars or more; or (iii) the employment of any individual at an annual salary which equals, or which may reasonably be expected to equal twenty-five thousand dollars, or more. (g) No consumer reporting agency shall collect, evaluate, report, or maintain in the file on a consumer any results, opinions, analyses, transcripts or information of any nature concerning, related to, or derived from a polygraph examination, an examination by any device or instrument of any type used to test or question individuals for the purpose of detecting deception, verifying truthfulness, or measuring deceptive tendencies, or the questioning or interviewing of an individual by the examiner prior to or after such an examination. CREDIT(S) 1996 Main Volume (Added L.1977, c. 867, § 2; amended L.1979, c. 179, § 1; L.1980, c. 683, § 1; L.1980, c. 706, § 1; L.1986, c. 249, § 1.) [FN1] Jan. 1, 1978.
Here's a link to the New York General Business Law, Fair Credit Reporting Act Article 25: http://assembly.state.ny.us/leg/?cl=44&a=53 Section 380-j(b)(3)(f)(1)(iv) contains the info re: the 5 year rule. I've researched this and had e-mail correspondence with a couple of lawyers. The 5 year law only applies to fully paid charge-offs/collections. The following is a statement from Experian: A charge off status means that the credit grantor wrote off the account as a loss. If this account has been paid, then this information will remain on the credit report for 5 years from the date that the item was charged off. If the account either has not been paid or was settled for less than the full amount, then it will remain for 7 years from the initial missed payment that led to the charge off. A "paid collection acount" means that the account is paid, but the credit grantor had sent the account to an internal collection department, hired an attorney or contracted with a collection agency to collect the payments. This information will remain on the credit report for 5 years from the date the account was sent to collection. If the account has not been paid, or was settled for less than the full, amount, then it will remain for 7 years from the initial missed payment that led to the collection status. Unfortunately, late pays fall under the 7 year rule. See 380-j(b)(3)(f)(1)(viii).
If an account is transferred to another loan servicer as is done with many student loans is there a way to legally enforce the CRAs to use the original date with the original creditor as the DOLA?
I read somewhere the FTC says 180 day the account is dq. but the SOL starts at the first 30 days as that is the actual date you stopped paying. remenber if the payment as due jan 1 it not late till jan 31 so jan 31 is the correct date Thats why a partial payment kills yuo as it starts the clock again http://www.ftc.gov/bcp/conline/pubs/buspubs/infopro.htm . Reporting Delinquencies -- Section 623(a)(5). If you report information about a delinquent account that's placed for collection, charged to profit or loss, or subject to any similar action, you must, within 90 days after you report the information, notify the CRA of the month and the year of the commencement of the delinquency that immediately preceded your action. This will ensure that CRAs use the correct date when computing how long derogatory information can be kept in a consumer's file. How do you report accounts that you have charged off or placed for collection? For example: A consumer becomes delinquent on March 15, 1998. The creditor places the account for collection on October 1, 1998. In this case, the delinquency began on March 15, 1998. The date that the creditor places the account for collection has no significance for calculating how long the account can stay on the consumer's credit report. In this case, the date that must be reported to CRAs within 90 days after you first report the collection action is "March 1998." 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. A consumer's account becomes delinquent on December 15, 1997. The account is first placed for collection on April 1, 1998. Collection is not successful. The merchant places the account with a second collection agency on June 1, 2003. The date of the delinquency for reporting purposes is "December 1997." Repeatedly placing an account for collection does not change the date that the delinquency began. A consumer's credit account becomes delinquent on April 15, 1998. The consumer makes partial payments for the next five months but never brings the account current. The merchant places the account for collection in May of 1999. Since the account was never brought current during the period that partial payments were made, the delinquency that immediately preceded the collection commenced in April 1998 when the consumer first became delinquent.
