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Who is right?? About the dreaded seven year clock...


georgia peach
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Boy am I getting conflicting information about this....from different boards, books, people.

Some say the 7-years reporting bad info is from the date of 1st delinquency. And after 7-yrs it has to fall off. Even if you pay it off in the 6th year. If they restart the clock, dispute it with the CRA. But it has to fall off.

Others say, 'No'....if you make a payment or pay it off...the 7-yrs absolutely begins again.

Really important people typing really important words have offered conflicting information. Where can I find out FOR SURE ...once and for all. A pan of brownies is up for grabs for the first offering of correct info.... thanks!

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Guest mikey

How long do accounts remain on my credit report?

In most cases, accounts that contain adverse information may remain on your credit report for up to seven years from the date of first delinquency on the account. If accounts do not contain adverse information, TransUnion normally reports the information for ten years from the last activity on the account. Adverse information is defined as anything that a potential creditor may consider to be negative when making a credit-granting decision.

This is straight off of TransUnion Credit Bureau site...

Do I get the brownies.....lol 8-)

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This is the only true and correct findings we use on this board: :wink:

FCRA 605©

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.

Please look over Fair Credit Reporting Act listed on this board if you want to read further... :D

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upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity

When I read that, it seems it means that it is 7 1/2 yrs....but when I look at the date posted on my report when it will fall off it is only 7 yrs from the date of last payment (or actitivity)....I think the 180 days is the period before it can be charged off and sent to collection. Either way, I am going by the date they post which seems to line up with 7 rs from last payment on all mine. I am curious about something. On the 81 month chart, there are a few months on the chart well off from the last payment that have a "pays or paid" marking in between there. Is this done to continue them? I notice also, none of them have all the dates such as date opened, last payment, status date, etc......it just has amount and some don't even have original creditor. I am contesting them in hopes that they don't have the info I am requesting and get them removed. I found one that was opened and then closed at the same time...one that I never recall opening as a negative on my report. It was never received or used. :shock:

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The 180 day rule is whenever you first went delinquent on your account that proceeded the charge off or collection proceeding.

So in other words you have a a car loan and the first three years you are on time with payments and then something financially happens and you miss your payments and the bank repos the car. The 180 day starts from the time you first went delinquent or missed your payment that proceeded the repo.

This is why you need to keep all your records and credit reports to show proof down the line when you first went delinquent. Credit bureaus put in their reports the date the last payment was made or when the account was settled. This is not the start date for your seven years and this is where the 180 day rule comes into affect when you first became delinquent prior to any proceedings...

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Guest mikey
The 180 day rule is whenever you first went delinquent on your account that proceeded the charge off or collection proceeding.

i thought i was saying the same thing.....if i stopped making a payment and went delinquent on may 1, then 180 days after that is when it could be charged off. the 7 yr rule seems to start when the acct goes delinquent because in all my cases, the yr falloff dates are from 7 yrs of the delinquent, not the charge off. in none of my cases is the 7 yrs starting from the 180 day mark. so, maybe i explained it wrong? in any case, the starting time with all mine seems to be 7 yrs from may 1, not nov 1..... :shock:

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Not everyone goes by that "first" 180 days. Personally none of my creditors or CA's have ever actually used that. I look at it as an "extra" that CAN be used, but in my experience it never is.

YMMV.

Some CRA's drop things when they are only 6.5 years old. I think it's maybe to cover their a$$es due to the "extra" 180 that CA's can creditors can report. I guess it's easier for them to not have to worry about anyone suing for something accidentally remaining on their files too long. This has not happened to me, because no one has reported that 180 days on my TL's. Again, YMMV.

Others say, 'No'....if you make a payment or pay it off...the 7-yrs absolutely begins again.

There is an SOL for getting sued for the debt and then there is the SOL for reporting negative info - 7 years. State law varies, but if, for example, you made a payment, and in your state that restarts the SOL, that has to do with whether you can still be sued for the debt. That does not change the 7-year reporting SOL.

There is one way you can change the 7-year reporting SOL, and that's by bringing an account current. Usually the account would still have to be open for this to happen, but there's an exception:

If it's a Credit Card account, for eaxmple, and the CA offers you a new credit card with the balance you owe already charged to it, and you accept, that re-opens the account and brings it current. That means that if you accept an offer like that (bad idea) this month, and next month you miss a payment, you've got new negative info on the account. If you never bring it current again, you've just restarted your 7-year clock.

(Sometimes they don't re-open that account, they just give you a new TL, but usually they screw you by re-opening. So instead of having a new TL, with the old one due to fall off whenever, you are stuck with opening the old one, meaning those late-pays will be on your file indefinitely.)

CA's are always looking for creative ways to get people to re-open their old accounts, because the threat that you could get negative info reported to your credit file is always leverage for them.

Other than weird scenarios like the above, negative information stays on your credit file for 7 years or 7.5 years, period.

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If you can slide by with only 7 years, consider it a bonus, but technically it IS 7-1/2 years.

© Running of Reporting Period

(1) In general. The 7-year period referred to in paragraphs (4) and (6)

3 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.

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"...technically it is 7 1/2 years."

Actually, it is 7 years.

FCRA Title 15 USC 1681c, Section "(a) Information excluded from consumer reports...(4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years."

CRA's have to comply with all of the law, not just one tiny exerpt that many consumers misunderstand. FACTA came about because the date that begins Reporting Time Period (RTP) was fluid. There was a need to establish a definitive method for establishing THE DATE so that violations of re-aging could be avoided or prosecuted (for lack of a better word). This is what led to the language, so often quoted, in 1681c "© Running of Reporting Period...(1) 180 days..."

180 days is the standard time period for revolving accounts to get charged off. But the law applies to ALL defaulted accounts. If a medical bill (which was never paid) gets turned over to collection, WHAT DATE do you surmise is established as the DOLA/DOLP (beginning of the RTP)? It is the date of (the medical) service. The account may be reported for 7 years from that date, period! I doubt anyone believes 180 days could legitmately be added to this accounts RTP just because FCRA 1681c ©(1). Yet, I continue to see comments like this.

The real point here is a literal reading of subsection. 1681c ©(1) "...The 7-year period referred to in paragraphs (4) and (6) of subsection (a) SHALL begin..."

Shall, in a legal context, means may. It is not an absolute. CRA reporting manuals and the rest of the FCRA say that defaulted accounts can not be reported past 7 years. Why would you grant them an extra 6 months to report negative data against you? Even the CRA's own literature says they may report for only 7 years. No where in CRA literature or FTC stuff does it say 7.5 years.

NOTHING legally changes this date once it is established. Not paying it, not bringing it current, not re-establishing the account with the creditor. Once an account actually, technically, defaults, THE DATE (call it what you will) for RTP purposes is set.

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I use the 180 days to my advantage....

I have an account that is listed as closed and settle for less then the full amount but the creditors use the date the account was paid as the last date on your credit report.

Well the account went delinquent prior to charge off back in 2000 and this is where my reporting requirement begins for the seven years. The OC is saying it starts when it was finally was paid. Well in the end I was right and they were wrong.. so it worked in my advantage...

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