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How do you tell when a CO should fall off?


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Years ago I settled with a CA (I know...).

I thought it should be gone by now, but it's not. I disputed as obsolete and it was verified.

From Equifax:

Arrow Financial Services

Date Opened: 4/2003

High Credit: $835

Activity Description: Paid

Balance Amount: $0

Date of Last Payment: 3/2005

Date of Last Activity: 1/2001

Date Closed: 3/2005

Current Status - Collection Account; Type of Account - Open; Type of Loan - Collection Agency/Attorney; Whose Account - Individual Account; ADDITIONAL INFORMATION -

Consumer Disputes This Account Information; Collection Account; Settlement Accepted on This Account;

I'm not exactly sure what the DOLA refers too (last payment or when it was charged off?) or what the original account was, to be honest. I think it was a First Premier account with a $2500 balance, and I know I paid more than $865 (I think there was a payment for that amount and a previous payment of $1000).

The OC isn't on my reports anymore, so wouldn't the collection fall within the same timeframe or no? Does the 7 years start from the opening date of the collection account or from the first delinquency of the original account?

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The account should fall off as of Feb 2008 if that DOLA is to be believed. Charge-offs typically happen at 180 days of non-payment, but not ALL creditors do that, some charge-off at 120 days.

You need to call the CRA and find out what the date of first delinquency is as reported by the ORIGINAL CREDITOR. They are required, by law, to report that date, unfortunately they are not similarly required to put it on our reports.

Negative items stay for 7 years PLUS 180 days beginning with the date of first delinquency (DOFD).

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As usual, the in depth explanation included in the FCRA does more to confuse than enlighten. It reads...

© 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.

...which most CRAs seem to intrepret as 7 years from the OC's "date of first delinquency", although your mileage may vary.

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