Is an item deleted 7 years after first reported activity or last reported activity?

[Anonymous]

Quick question . . .

I'm cleaning up my credit report, and I've discovered a charge-off collections claim for $97.  It is valid, but it will be 7 years old on August 2010.  When I called to get information regarding the debt, the collection agency told me that, regardless of whether I paid or not, the charge will fall off my report in August.  However, it's been my understanding that items stay on your credit report 7 years (or longer) from the most recent activity.  If I pay this, and they then report it as paid in full, will it become a "current" issue, damage my credit further, and remain on my report for another 7 years?

Also, when I actually look at my report, it says "Date opened Jun, 2006."  I know what this debt is, and it is almost 7 years old.  Has the collections agency done something to change the date to Jun 2006?  It does say the date of last activity is "not reported."  Does that mean that it's too old and about to fall off in August?  Just trying to make sense of this and do the best that I can to honor the debt and save my rebuilt credit score . . .

[BungalowMo]

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@Anonymous wrote:

Quick question . . .

I'm cleaning up my credit report, and I've discovered a charge-off collections claim for $97.  It is valid, but it will be 7 years old on August 2010.  When I called to get information regarding the debt, the collection agency told me that, regardless of whether I paid or not, the charge will fall off my report in August.  However, it's been my understanding that items stay on your credit report 7 years (or longer) from the most recent activity.  If I pay this, and they then report it as paid in full, will it become a "current" issue, damage my credit further, and remain on my report for another 7 years?

Also, when I actually look at my report, it says "Date opened Jun, 2006."  I know what this debt is, and it is almost 7 years old.  Has the collections agency done something to change the date to Jun 2006?  It does say the date of last activity is "not reported."  Does that mean that it's too old and about to fall off in August?  Just trying to make sense of this and do the best that I can to honor the debt and save my rebuilt credit score . . .

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First....welcome to the forums!

Second...NEVER call a CA!  It usually ends badly.  I would also normally say that I'd never believe what they say over the phone, but in this case, they are correct.

A collection account must do their reporting in sync with the original creditor.  If this was a cc & your DOFD was 08/03, then no matter what CA buys the acct, they have to follow the dates given by the OC.

When the CA posts the date open as 06/06, that is simply the date they bought the acct from the OC.  Somewhere it should post the actual acct open date (for the original acct).

Message Edited by BungalowMo on 01-08-2010 06:16 PM

[Anonymous]

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@BungalowMo wrote:

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@Anonymous wrote:

Quick question . . .

I'm cleaning up my credit report, and I've discovered a charge-off collections claim for $97.  It is valid, but it will be 7 years old on August 2010.  When I called to get information regarding the debt, the collection agency told me that, regardless of whether I paid or not, the charge will fall off my report in August.  However, it's been my understanding that items stay on your credit report 7 years (or longer) from the most recent activity.  If I pay this, and they then report it as paid in full, will it become a "current" issue, damage my credit further, and remain on my report for another 7 years?

Also, when I actually look at my report, it says "Date opened Jun, 2006."  I know what this debt is, and it is almost 7 years old.  Has the collections agency done something to change the date to Jun 2006?  It does say the date of last activity is "not reported."  Does that mean that it's too old and about to fall off in August?  Just trying to make sense of this and do the best that I can to honor the debt and save my rebuilt credit score . . .

---

First....welcome to the forums!

Second...NEVER call a CA!  It usually ends badly.  I would also normally say that I'd never believe what they say over the phone, but in this case, they are correct.

A collection account must do their reporting in sync with the original creditor.  If this was a cc & your DOFD was 08/03, then no matter what CA buys the acct, they have to follow the dates given by the OC.

When the CA posts the date open as 06/06, that is simply the date they bought the acct from the OC.  Somewhere it should post the actual acct open date (for the original acct).

Message Edited by BungalowMo on 01-08-2010 06:16 PM

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yep! your last date of activity....

[MarineVietVet]

Here is how and when derogs drop from you CR, and are thus no longer included in FICO scoring.

Monthly delinquencies under an OC account drop at 7 years from their individual date of delinquency. FCRA 605(a)(5). The date of first delinquency (DOFD) has nothing to do with these drop-off dates. They drop from their own individual dates. So look at each prior OC reported monthly derog date, and simply add 7 years.

If the OC subsequently reports their account as a charge off, that is a totally different and additional post to your CR. Their post as a charge-off will remain in your CR for 7 1/2 years from the DOFD on the OC account, which is the first 30-day delinquency you had on the account, and disregards any later 60/90+ delinquencies that followed. That is one single date-certain, and cannot be reset. FCRA 605(c).

If the OC then refers the account for collection, and a CA posts to your CR, the drop-off date of their collection reporting is the same as that of a CO. It is 7 1/2 years from the same DOFD on the OC account, and the CA cannot reset this date. Again, FCRA 605(c).

[Anonymous]

Thank you so much for clarifying this for me. I read some other threads, but it was difficult to wade through the amazing and conflicting information, so I thought I'd ask.  Again, it is very much appreciated!

[RobertEG]

Cogirl, I understand your head-spin in understanding your rights, but they are really kinda simple.  The FCRA is very clear,

The only date you have to know for collection accounts is the date that you first went into delinquency with the original credtor, after which the account was never placed back into paid, good staanding status.  Ignore anything the collection agency tells you. That is your DOFD with the original creditor.

A collection agency can do NOTHING to reset this date.  Their reporting is meaningless. 

It is set forth as a date-certain under FCRA 605(c) in order to eliminate CA re-aging.

Once your know your DOFD on the original creditor account (which is your most recent 30-day late with them, ignoring further lates), just add 7 1/2 years to that simple date.  That is your credit report fall-off date, pure and simple.

FCRA 605(c) speifically prohibits the CRA from including any reporting of ANY collection activity on this account after that date.

Message Edited by RobertEG on 01-08-2010 07:37 PM