I read a post here about 180 day time limit for charge offs w/ regards to when the 7 year time period begins. Is this only for charge offs? I have a collection account that doesn't fall within the 180 days SOL, but I need to know if this is grounds to push for removal or does the SOL 180 days statue only apply to collections? Thanks!
The 7 year reporting period for reporting negative information on credit reports begins when the account is charged off, and written off for purposes of profit and loss, but under FCRA no later than 180 days from when it first went into default and from which it was never brought current. This is to prevent an OC from just claiming not to charge it off, to keep it on your reports indefinitely, or to prevent occasional partial payments from resetting the reporting period. In addition, it is common accounting practice to charge off (and write off from profit and loss) accounts in default for 180 days where there is no expectation that the account will be paid. Even though an account is charged off, the debt is not necessarily forgiven, and can be reported. The SOL is the Statute of Limitations that under state law determines how long after a debt goes bad the creditor (or a buyer of the debt) can sue the debtor. That period varies from state to state, and certain events, such as making a payment, or reaffirming the debt, may reset it. If the SOL has passed, the creditor might still sue, but the debtor can raise SOL as a defense against the suit.
Thank you! I understood everything in your reply w/ this one exception, which is my question I guess. This 180 day period....does it apply if the bad debt on my file is showing only as a collection account and states nowhere on the file that it has been "charged off" or is in "charge off" status? This is a medical bill and 1st deliq. was 9/2000 from OC, yet it was not assigned to CA until 3/2002. Is this grounds for removal?
If it was first delinquent in 9/2000, it should fall of your reports somewhere between 7 years and 7.5 years after 9/2000, but no more than 7.5 years. The dates assigned to the CA, or sold to later JDBs, or even the dates of any subsequent payments on the account, have no bearing on the fall-off date from your reports. The CA is required to notify the CRA, within 90 days of posting the account on your reports, what the original date of delinquency is, so that the CRa can comply with FCRA and remove it on time. Some credit reports do not show clearly, or show at all, when the account is due to fall off, or when it originally went delinquent. Call the CRA and ask them what is being reported.
