Whole Account Deleted or Just That Particular Negative Item

[Anonymous]

I have a question that I have been searching for but can't seem to find here (might have not searched for the right terms). I want to know if a whole account is removed 7 years after the first derogatory item on the account (assuming the account is closed) or if only that particular negative item is removed 7 years after it showed on the report. For instance, I have an account that has several 30 day lates, 1 60 day late, then a multitude of 90 day lates. It was eventually charged off. I have paid the account (settled with the original company in August of 2007) in full and the account is closed. The first 30 day late was being reported in October of 2001. Now in October of 2008 will this whole account be removed from my report, or will that initial 30-day late be removed only? Thanks in advance!

[Anonymous]

IT depends entirely on the account status-

In your example "settled for XXX" it would be removed

If the Status is OK?current they should remove ALL the late in the string of lates, when the string of lates hits 7 years.   

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Kitch wrote:
I have a question that I have been searching for but can't seem to find here (might have not searched for the right terms). I want to know if a whole account is removed 7 years after the first derogatory item on the account (assuming the account is closed) or if only that particular negative item is removed 7 years after it showed on the report. For instance, I have an account that has several 30 day lates, 1 60 day late, then a multitude of 90 day lates. It was eventually charged off. I have paid the account (settled with the original company in August of 2007) in full and the account is closed. The first 30 day late was being reported in October of 2001. Now in October of 2008 will this whole account be removed from my report, or will that initial 30-day late be removed only? Thanks in advance!

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[Anonymous]

So, in my case, the entire account should be removed on 10/2008 (7 years since the first 30 days late) since the account is closed and settled?

[Anonymous]

IMO- yep

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Kitch wrote:
So, in my case, the entire account should be removed on 10/2008 (7 years since the first 30 days late) since the account is closed and settled?

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[Anonymous]

Thanks so much!

[RobertEG]

I am not sure I agree.

The first comment I would offer is that accounts are not deleted from a CR after 7 years from a derog.  The account remains on the CR until the CRA chooses to delete it, which is normally not until 10 years after the account is closed in good standing. There is no statutory requirement whatstover that an account must be deleted from a CR at any specified time.  The only statutory requirement is when derogs reported on an account may no longer be reproted.

The FCRA does prevent reporting of derogs on an account after 7 years for CC lates from the date of the derog, and 7 years from  date of payment of a collection.

With this in mind, I think there are several considerations here.  Apparently the delinquencies led to a collection account reporting, which was not paid until 8/07.  Under the FCRA, that collection derog can continue to be reported for 7 years from its settlement, or until 8/14.  That issue is separate from the late derogs that led to it.  The account does not go away after 7 years from a prior derog that was associated with that account.

The first derog on the account was recorded in 10/01, and I agree that derog per se cannot be further reported after 10/08.  However, later derogs may still be reported under the FCRA for up to 7 years from the derog date, so I don’t see any statutory prohibition against the CRA continuing to report the subsequent 60/90 lates from their actual date of derog.  

I don’t see the entire derog history disappearing after 10/1/08.

Message Edited by RobertEG on 06-05-2008 12:55 AM

Message Edited by RobertEG on 06-05-2008 01:57 AM

[haulingthescoreup]

Timothy, why would the entire account disappear? My understanding is that the derogs have a 7-year life, which is separate from the accounts, which live for ten years after their closing date? Why would the entire account drop when the last derog dies? Shouldn't there be at least 3 years of clean reports remaining after that last one goes?

This is what EX told me when I questioned the "was 30 days late" status on an ancient gas card account. She said that the late will fall off in April 2011, and the account will remain until April 2014. My EX report states that this account will change to a positive status in 4/2011. (The very last payment to close the account was late. )

I guess I can see an exception for CA's, since the entire account is reported separately as a negative, not just a normal account with a derog on it...


edited due to error from lack of coffee this sad a.m.

Message Edited by haulingthescoreup on 06-05-2008 04:22 AM

[Anonymous]

I never said FCRA (except the 7 year thing) -

This was WHAT they do- Just like how they zap TL's after 10 years, nothing in FCRA for them to do this either-

In practice-

30 Late in 8/01, 60 late 9/01, 90 late 10/01, 120 late 11/01- 3/02 

If the account was made current and the status was updated to "ok/Paid as Agreed"  or "OK/was 120 Late" (EXP)

On 7/2008 the CRA would zap all the lates in the string of lates- as the DOFD was 8/01. and the account would continue to report until 10 years closed.

In the same example of lates and the status is derog - Paid CO, Settled, paid collection, repo, ect- The SAME DOFD is in place - (DOLA for EQ) and this is the date the CRA's will use to Zap the entire account-  come 7/08 the entire TL would be removed-

Now-

If the an account was 30, 60 then caught up had some clean payments and then went 30 60 again- the FIRST Sting of lates will be removed at 7 years but not the 2nd set-  IF the account is in a positive status-      

[Anonymous]

Derog status= account removed at 7 years DOFD

Clean status= Lates removed at 7 years-

The CRA's will remove the STRING of lates at the 7 year mark-

As far as your EX- YES your status is "OK/was 30 days past due" and this IS a positive status- and IS accurate.   The account will do exactly what EX told you-   

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haulingthescoreup wrote:
Timothy, why would the entire account disappear? My understanding is that the derogs have a 7-year life, which is separate from the accounts, which live for ten years after their closing date? Why would the entire account drop when the last derog dies? Shouldn't there be at least 3 years of clean reports remaining after that last one goes?

This is what EX told me when I questioned the "was 30 days late" status on an ancient gas card account. She said that the late will fall off in April 2011, and the account will remain until April 2014. My EX report states that this account will change to a positive status in 4/2011. (The very last payment to close the account was late. )

I guess I can see an exception for CA's, since the entire account is reported separately as a negative, not just a normal account with a derog on it...


edited due to error from lack of coffee this sad a.m.

Message Edited by haulingthescoreup on 06-05-2008 04:22 AM

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[haulingthescoreup]

OK, I guess I misunderstood your reply to the OP's post, where he was saying that the whole account will fall off at the seven-year mark, as opposed to at the 10-year mark.

I'm having a tough time hanging on to some of my older closed accounts --I'm going to be mostly OK on average age if they fall off at ten, but a couple have lates, and if they fall off (entirely) at seven, I'm going to be a sad puppy.