Okay I've read a ton of posts and I've searched all over the net but I have NOT found an answer to my question. I live in New York and as stated in the New York General Business Law, Fair Credit Reporting Act Article 25 Section 380-j(b)(3)(f)(1)(iv): (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. (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; A supervisor from Experian told me that this only applies to accounts "paid in full" and not "paid in settlement". Is that true?
I wish I could help, but here's a courtesy bump for you. I suspect that they can maintain that position, but you would certainly have a right to challenge it in court. So many areas of the FCRA (both federal and state) have not been litigated, so they are gray areas. I would think you would have an argument that whether it was paid in full or settled is irrelavent because the creditor considers the matter satisfied, although I have no clue as to which way it would go. L
I'm not positive how long ago (sometime in the last year) I read on CN that someone else was going thru this. I believe it's 5 years from the date PAID it gets removed (or 7 years whatever is sooner) or 7 years if never paid. I remember everyone at that time was wondering about getting NY PO Boxes, maybe do a search on NY PO Box? In other words....courtesy bump
Maybe I wasn't clear. Yes, in New York PAID collections/charge-offs are supposed to be deleted after 5 years (see above). My question is: Does the law only apply to accounts that were "paid in full" and not those "paid in settlement"? On a side note- thanks for the courtesy bumps you guys
Negative information is deleted at 5 years. There's no distinction between paid collection accounts and paid collection accounts settled for less than the full amount. They're both negative.
In relation to your question. Under the Fcra the item remains for a period of time based upon last activity date. Paid - Not Paid Or settlement does not matter.
Well ... Thanx KLFS, but you're both correct and incorrect. The FCRA doesn't state that the obsolescence period runs from the DLA. It runs from the date of the original delinquency immediately preceding the negative action. You're right tho, in that the CRA's DO calculate the 7 year period from the DLA, but they shouldn't. Jdog had a case where, after creating activity on an account the DLA was adjusted and the obsolescence period was renewed. He appealed to the legal dept. at one of the CRA's and stated what I just said. The CRA acquiesced and deleted the TL.
Sorry. I meant to say Date of last activity in relation to the creditor or collector. Date of last payment This is very easy to dispute.
