I paid a CA the remaining balance in Jul03. However, it was already made a charge off in Jun03. It is now stating that it's a paid charge off in Oct03. The balance started to be overdue in May03. I thought I read somewhere that by law, the 7 yr period should actually start when payment was missed. Does anyone know the definite answer to this?
FROM THE FAIR CREDIT REPORTING ACT: § 605. Requirements relating to information contained in consumer reports [15 U.S.C. § 1681c] (a) Information excluded from consumer reports. Except as authorized under subsection (b) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information: 1. 2. 3. (4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years. Last activity which led to charge off in OCT 03 was in MAY 03, therefore account would remain negative TL until MAY 2010 PS If you happen to live in NY Sate the reporting period for PAID Charge Offs is 5 years --> MAY 2008
Thanks for the info. There were other periods missed, 30 days. What are the chances it would date back to one of the originally missed periods?
The period that counts is the PAYMENT due date just before it went delinquent, and was never brought back to current before being charged off In other words, you made a payment in APR 03, missed the MAY 03 payment, it was deliquent then. You never brought it current, and they charged it off in JUN 03, so the 7 yr reporting period starts from when it first was delinquent...MAY 03
From section 605 of the FCRA: c) Running of reporting period. (1) In general. The 7-year period referred to in paragraphs (4) and (6)(2) of subsection (a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.
