Credit Card Center Advertiser Disclosure

Reply
Member
Posts: 41
Registered: ‎04-10-2017
0 Kudos

When do settled accounts drop off credit reports?

Discover card that i settled on. closed date 1/2009. last payment date 8/2010. last reported date 9/2010. on my credit report it shows "paid as agreed" but in the remarks it states "paid for less than full balance'  Since the account is technically shown as current and paid, when will it drop off my report? will it be seven years since there is a derogatory remark or 10 years because it is shown as "pays as agreed" and from what date should it drop off; from the closed date, last payment date, or last reported date. if it should have already dropped off is this something that i can dispute or is it not worth it. thanks in advance

Community Leader
Epic Contributor
Posts: 29,569
Registered: ‎03-19-2007
0 Kudos

Re: When do settled accounts drop off credit reports?

[ Edited ]

Credit report exclusion of OC account information applies only to adverse items of information reported on an account., More specifically, monthly delinquencies become excluded no later than 7 years from their date of occurence, and charge-offs no later than 7 years plus 180 days from the date of first delinquency.

The reporting of settled for less is an adverse item that should be excluded after 7 years from the settlement date per FCRA 605(a)(5).

 

The only time an entire account becomes excluded based on the FCRA is the case of an account with a reported charge-off that remains unpaid.

It qualifies for exclusion both of the CO and of the reporting of an unpaid debt, and thus the CRA will exclude the entire account.

 

Otherwise, once derogs have become excluded and the account is otherwise in good-standing, the account itself remains, and it will only be deleted if either the creditor explicitly reports deletion to the CRA, or the CRA exercises its subjective housecleaning policy at approx ten years after the date the account was closed.

Member
Posts: 41
Registered: ‎04-10-2017
0 Kudos

Re: When do settled accounts drop off credit reports?

so. should the remark of "paid less than full balance" drop off that account after 7 years or is that stuck there cause the account is show paid current status. my EQ FICO is showing 60 points lower than TU and EX due to this remark. 

Community Leader
Epic Contributor
Posts: 29,569
Registered: ‎03-19-2007
0 Kudos

Re: When do settled accounts drop off credit reports?

FCRA 605(a)(5) mandates that "any other adverse item of information" other than the four types specifically referenced in subsections 605(a)(1-4) must become excluded no later than 7 years from their occurence.  It is a catch-all subsection that applies to any other adverse item of information.

 

A statement that an account was paid/settled for less the full amount of the debt is an adverse item of information, and has an exclusion date of no later than 7 years from the date of the adverse event (i.e., from the date the debt was settled).

Member
Posts: 41
Registered: ‎04-10-2017
0 Kudos

Re: When do settled accounts drop off credit reports?

The thing that is weird too is that my EQ FICO score details show the dergatory indicator (the settled remark) and it shows a serious deliquency. But it also lists no negative items, every acccount opened or closed is in pays as full/current status. So where is the delinquncy???? it doesn't tell me what it is. I am assuming that it is the Discover card but it when you go to the details it shows nothing negative other than the settlement remark. it is bugging the heck out of me. 

Member
Posts: 41
Registered: ‎04-10-2017
0 Kudos

Re: When do settled accounts drop off credit reports?

 

here is what my equifax is saying. But if you go into the details to every single open or closed account there is not one account that shows late. they all show pays as agreed. The ONLY negative bit of info i can find is this on the discover card. but it shows no late payments either. Screenshot 2017-05-14 19.42.29.png

 

 

Screenshot 2017-05-09 20.58.27.png

 

Member
Posts: 41
Registered: ‎04-10-2017
0 Kudos

Re: When do settled accounts drop off credit reports?

in one of the above photos it states that the last late payment was 6 years 9 months ago. that would make it 8/2010 which is the last payment date on the discover card. so i would think thats it, but look at this photo. nothing but green on the payments. i don't get it .Screenshot 2017-05-14 20.29.47.png

Established Contributor
Posts: 550
Registered: ‎07-24-2014
0 Kudos

Re: When do settled accounts drop off credit reports?


RobertEG wrote:

FCRA 605(a)(5) mandates that "any other adverse item of information" other than the four types specifically referenced in subsections 605(a)(1-4) must become excluded no later than 7 years from their occurence.  It is a catch-all subsection that applies to any other adverse item of information.

 

A statement that an account was paid/settled for less the full amount of the debt is an adverse item of information, and has an exclusion date of no later than 7 years from the date of the adverse event (i.e., from the date the debt was settled).


 

 

From my understanding, this is not true anymore.  It is still 7-years from the date of the first delinquency due to some changes made under the FCRA with Obama stating that is still removed after 7-years from the original date of delinquency and not the date of the last payment.

 

Current Scores (9/9) - Equifax 542 - TransUnion 560 - Experian 563

$500
New Contributor
Posts: 145
Registered: ‎05-07-2017
0 Kudos

Re: When do settled accounts drop off credit reports?

Have you tried contacting Discover about a possible deletion?
Community Leader
Epic Contributor
Posts: 29,569
Registered: ‎03-19-2007
0 Kudos

Re: When do settled accounts drop off credit reports?

There was no amendment to the FCRA during the Obama administration that related to credit report exclusion.

Date of first delinquency is ONLY relevant to the exclusion of a charge-off or collection.  It is not used in determining the exclusion date of any other adverse item of information. 

See FCRA 605(a)(4), as clarified by FCRA 605(c) as to use of DOFD for exclusion of a charge-off or collection.

 

The only applicable exclusion provision of the FCRA that would apply to a statement that an account was settled for less would be FCRA 605(a)5).

Section 605(a)(5) does not base running of the 7 year period on the DOFD.

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.