09-28-2012 05:08 PM
09-28-2012 06:29 PM
Ok... here's how I think this ought to work. The account was never charged off, so then there would be no DOFD for the account to charge off from. The lates would have been the neg. on your account. They should have aged off individually 7 years from their respective dates and the account should have turned into a positive account and stay on for 10 years. The current status is reporting incorrectly. It should read Paid/Closed.
09-28-2012 06:45 PM
I too have entries on my credit report like this. So, how do we fix something like this, especially when he already tried to dispute his derogatory information with the credit bureaus stating that it has been over 7 years and that apparently didn't do any good. I'm afraid to dispute anything else on my report because it seems like it hurts me more than anything else. I have one entry that I disputed and now all of a sudden the beginning date of the debt is like 2010 - which is absolutely not correct.
09-28-2012 08:37 PM
Current status reflects no history prior to its... current status.
While an account remains delinquent, it can continue to report a current status of, for example, 120 late. The balance due does not necessarily denote its current delinquency status.... for example, a creditor could have a delinquent account and sell the debt, which requires them to report a balance of $0. That does not mean there is no debt remaining on the account, or that it is no longer delinquent. The issue is whether the debt was satisfied (paid).
When a delinquent account is brought back into good-standing, either by paying and keeping the account open, or paying delinquent debt on a closed account, the current status then switches over to a payment, rather than delinquency, status. When that occurs, the prior level of delinquent prior to its new paid status is retained under a separate code called your Payment Rating. So your file shows its current status of paid, and additionally shows the prior 120 late status. Its just a matter of which storage bin contains the info.
A paid, closed account will have a current status of paid, a current balance of $0, and if it had prior delinquencies, a payment rating that reflects the level of prior delinquency.
Info does not disappear based on payment.
Any prior monthly delinquency is prohibited, under FCRA 605(a)(5), from continued credit report inclusion after 7 years from its date of occurence of the delinquency.
If a prior delinquency remains after its statutory exclusion date, one of two things is wrong. Either the creditor reported the incorrect date, in which case the CRA is not at fault, or else the CRA has failed to monitor the expiration of the 7 year period.