This is one of the trickier issues I'm facing with cleaning up my credit. I had a student loan that I paid on time for several years. When everything went bad for me in 07, I couldn't pay on the loans anymore. In 2010, I consolidated the debt, which is now in a deferment, so I'm not behind on it. Now my credit report shows that the original loan was sold to another lender, but it doesn't show any scheduled deletion dates. I know that unpaid student loans will stay on your credit forever, and that you can't BK out of them, but will those late payments also show up forever, even once the loan was paid off (through the consolidation)? Thanks, any advice here would be greatly appreciated.
Actually, no account is technically completely immune to the obsolescence date. Section 605 only specifies the following... BK - 10 years CIVIL Suits - 7 years PAID Tax Leans - 7 years COLLECTION - CHARGE OFF - 7 years The only thing that looks like it eeks by without an obsolescence period persay is UNPAID Tax Leans, which Section 605 is mum to. The only exception is credit checks which are specifically certified for large job, credit line, or insurance inquiry purposes, which all accounts are expressly immune to obsolescence rules. Some CRAS do not list a fall off or deletion date, some may only list a DoFD. Add 7 years to the DoFD and you should have the deletion date. Any 'history' should roll off at the 7 year mark from the month of the historical event, so at the 7 year mark a late payment that had occurred should fall off because that history is now obsolete.
Jam237, I am not sure I understand what you meant by this: "The only exception is credit checks which are specifically certified for large job, credit line, or insurance inquiry purposes, which all accounts are expressly immune to obsolescence rules." Could you elaborate a little bit for me please? Thanks.
There is a provision which allows for exempted reports for jobs, credit or insurance transactions over a specific amount.
So does that mean that if I apply for a job, they can see everything, even stuff that's past the 7 year mark?
Only a job which would qualify as exempted. 15 U.S. Code § 1681c - Requirements relating to information contained in consumer reports (b) Exempted cases The provisions of paragraphs (1) through (5) of subsection (a) of this section are not applicable in the case of any consumer credit report to be used in connection with— (1) a credit transaction involving, or which may reasonably be expected to involve, a principal amount of $150,000 or more; (2) the underwriting of life insurance involving, or which may reasonably be expected to involve, a face amount of $150,000 or more; or (3) the employment of any individual at an annual salary which equals, or which may reasonably be expected to equal $75,000, or more.
