I recently was on a payment plan with national consumer resource center (NCRC) but was disatisfied with them and paid off all my bills. Some of my accounts were closed by the lender, while others were closed at my request. My question is when does the 7 year clock start regarding the removal of information off my credit report? Was it when the accounts were closed or when they received the final payment? Any help will be appreciated.
Hi I got this from the creditnet library... Does the 7-year limit start over after paying a debt? Under the old Fair Credit Reporting Act (FCRA), credit bureaus would start the 7-year cycle over again when the consumer decided to pay off a negative account. This created a catch-22 since it provided little incentive to pay the debt. Under the new FCRA, credit bureaus and creditors cannot arbitrarily choose when to start the cycle. In fact, the FCRA requires that the clock begin at the first negative remark that initiated the incident. For example, if you quit paying an account in March and miss all of your subsequent payments through October at which time the creditor sends the account to collections, the credit bureau would be required to begin its seven year period in March when you skipped your first payment. Good Luck Sbdmom
Thanks for the reply. I late 1999, my wife took ill and was out of work for four months and I could not keep with my cc payments for several months. The lenders did not want to cooperate and I then turn to NCRC(mistake). The CR has two of my accounts under debt counsling as of 1999as well as several 90+days late. I paid into NCRC for 2 1/2 years, never late, before paying off the entire balance owed to my lenders. According to your answer I still have 4 1/2 years before any derogatory information comes off?
