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neg info

Frequent Contributor

neg info

I been tryin to see if i could find an answer to this but so far no luck, but does anyone have any idea of how 7 yrs for late payments ect and 10 yrs for bk became the standard for how long the neg info remains on your report?

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Message 1 of 5
4 REPLIES
Community Leader
Epic Contributor

Re: neg info

Congress, as part of the initial FCRA, determined to grant consumers exclusion of adverse information from their credit reports after expiration of certain periods of time.

It became the standard when the FCRA was enacted into law.  See section 605(a).

The FCRA was amended in 1997 by the addition of section 605(c)  to clarify the exclusion peirod for charge-offs and collections as being based on the DOFD on the OC account.

Message 2 of 5
Frequent Contributor

Re: neg info

thanks thats a start, i am really just curious as to how they determined that these time limits are an approiate amount of time, did they just say meh 7 yrs sounds good or was it based on some study showing that it takes an avg person 7 yrs to correct their situation

Amx BCE-15k,Amx Zync-NSPL
Barclay's Mastercard-10.5k
Credit Union Visa-1k
Discover-19k, Khols-2k
Message 3 of 5
Community Leader
Epic Contributor

Re: neg info

The FCRA was enacted in 1970, and no changes have been made to the basic time periods over that 43 year span.

 

It has only been a bit more than a decade since consumers have had access to their own credit reports/scores, and the importance and use of those periods has changed over time.  Many advocate their update.  Probably kinda low on the congressional priority list.

Message 4 of 5
Established Contributor

Re: neg info

A long time ago, 1970's, your credit report only followed for 4 years. I can not remember when it changed, however, the financial sector (bankers) believed a 7yr history was more reflective of how you  pay your bills. 

Starting scores 01/02/2012 EQ 707(Fico) TU 733(Fico)XP 735 (FAKO)
Updated scores 05/01/17 EQ 824, TU 812 EXP 810 (all Fico scores) Remember the Three P's: Pay early in Full, Pay on Time, Patience
Message 5 of 5