I ran a report as part of my new myFICO account I opened today was able to get a list of which items are still in collections. I only have a small handful of things left there, which are $200-$300 left. That is, except a bad property lease that is still reporting from 2010. Without getting into the specifics to gross you out, let's just say that bed bugs, roaches and myself simply do not mix (so I moved early). They pursed it and got a judgment against me in the amount of the remaining year and half lease (a whopping $11,000).
Now, here is my question. From what I understand, old delinquent accounts simply fall of your report after 7 years. This one is due to drop off next year. However, are judgments like this (especially relating to a lease and not a credit card) governed by the same rules? Is there anything that will cause this to stick even after the seven year mark (perhaps due to it being so much more money than the rest)? What about the fact that it's from a judgment through a court with a possible wage garnishment involved? Or am I just being paranoid and this will disappear like any other expired item past the seven year threshold?
Under FCRA 605(a)(2), a civil judgment is not required to be excluded until the later of 7 years from the date of entry of the judgment, or until the statute of limitations on enforceability of the judgment has expired.
The statute of limitations on continued enforceability of a judgment varies by state law, and is usually 10 years from date of entry, and can routinely be extended by the court.
Thus, a judgment, if unpaid and still enforceable, could theoretically remain in your credit report until it is paid.
However, anecdotal posts here in the forum indicate that the CRAs do not monitor the enforceability of judgments, and choose to exclude them all at 7 years from date of entry. Under what conditions they would choose to still apply the "later than" clause and continue to include a judgment until it is paid is hard to guess, but legally they could do so.
Regrdless of exclusion from a consumer's credit report, and unpaid judgment remains in the public record, and creditors can become aware by a simple search of public record information. While many creditors dont do a public records search for lower amounts of credit, they do so for higher amounts, such as mortgage loan underwriting, so exclusion from a consumer's credit report will not prevent a creditor from becoming aware of an unpaid judgment should they do a standard public records search.
If a collection is also reported, it has a date-certain exclusion date, paid or unpaid, based only on the DOFD on the OC account, and must be excluded no later than 7 years plus 180 days from the DOFD.
Thanks for the reply and the info. So based on what I'm reading, the lease (regardless of amount or type) is no different than any other item in collections and falls under the same 7 year-ish guidelines as everything else (meaning it will likely drop off my report after that time period). I know this is only if someone pursing the lease collection doesn't continue to follow up as you mentioned, which could somehow keep it active.
But let's assume the best for a moment and say that they're done trying to collect on it and do not purse it further. If I were to run a credit report two years from now, can I assume it’ll no longer appear?
You are correct.
The credit report exclusion period set under the FCRA is not based on the type of debt, and applies to all collections.
The only exception that permits a collection to continue to report based on the type of debt applies to federal student loans.
The Higher Education Act separately and explicitly extended the credit report exclusion periods for federal student loans if the loan remains unpaid.
That is the only exception.