Ok, here is my question. I live in NY, therefore, I have the 5 year paid collection/charge-off rule. Does this go for Credit Cards too? For instance, I have a Sears tradeline that is a paid for less than full balance charge off. Is this subject to that 5 year rule? Thanks,
Erica: Although itâ??s been awhile since I last read the NY statute youâ??re referring to, as far as the reporting limit. I donâ??t recall that it differentiates between different types of debt, which means your credit cards should fall under the same rule. Although if Pat (whatever happened to him?) were here, Iâ??m sure heâ??d offer more clarification. However Iâ??m fairly confident the NY statute does in deed include all debts. That is, without researching the issue more thoroughly. Be that as it may, you can research the cite yourself by logging on to www.FindLaw.com, clicking on state statutes and running a search under New York and then credit or credit reporting.
I also live in NY and I had a charge-off of an Amex green card. It fell off my credit report 5 years after the original date of the charge-off (and not the date of last activity, which was updated when I paid off the debt). All 3 of the bureaus did it the same way.
NY Credit Bureau reporting info Under New York State Consolidated Laws, General Business catagory, ARTICLE 25 Fair Credit Reporting Act <http://assembly.state.ny.us/leg/?cl=44&a=53> S 380-j. Prohibited information. f) (1) Except as authorized under paragraph two of this Consolidated Laws - credit reporting laws subdivision, no consumer reporting agency may make any consumer report containing any of the following items of information. (ii) judgements 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; (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;
Sears is a little different. Sears credit card debt is considered a secured debt. It is secured by the merchandise you purchased with it. Therefore, Sears falls under the secured debt SOL which is usually 1 to 2 years longer than the unsecured debt SOL in most states.
