topic Re: When does a settled charged-off debt disappear? in Rebuilding Your Credit

When does a settled charged-off debt disappear?

CreditJim — Tue, 03 Jun 2014 01:27:48 GMT

I had an old debt that was originally charged off around November 2007. Last year, while I was going through the mortgage process, my lender required it to be settled. I settled the debt with Bank of America for less than owed. The problem is, it's now showing on my credit report as being charged off in June 2013.

Will this drop off at the end of this year, which will have been 7 years since it was originally charged off, or will the clock now run from Jun 2013?

Re: When does a settled charged-off debt disappear?

Shogun — Tue, 03 Jun 2014 01:55:14 GMT

The DoFD should remain Nov. of 2007 and should be excluded by the end of the year or so. Paying the debt does not restart the clock. Just make sure you keep an old CR with the old DoFD on it should you need proof.

You should be able to see the DoFD or the date of exclusion on your CR, unless you're pulling from a 3rd party.

Re: When does a settled charged-off debt disappear?

CreditJim — Tue, 03 Jun 2014 02:19:52 GMT

Yes I'm pulling my report directly from Experian. The first late was May 2007, reported as a 30-day late. Leading up to 180 days late in October 2007. Does that mean the 7 years starts from May 2007? I always thought it was the original charge-off date.

Re: When does a settled charged-off debt disappear?

gdale6 — Tue, 03 Jun 2014 02:23:23 GMT

@CreditJim wrote:
Yes I'm pulling my report directly from Experian. The first late was May 2007, reported as a 30-day late. Leading up to 180 days late in October 2007. Does that mean the 7 years starts from May 2007? I always thought it was the original charge-off date.

The time clock runs from the DOFD which would be 05/07, the FCRA allows 7 years + 180 days from the DOFD for a negative account to report. I believe you will need hard copies from EX to see removal dates I never saw them when I had their monitoring service.

Re: When does a settled charged-off debt disappear?

Shogun — Tue, 03 Jun 2014 02:23:57 GMT

@CreditJim wrote:
Yes I'm pulling my report directly from Experian. The first late was May 2007, reported as a 30-day late. Leading up to 180 days late in October 2007. Does that mean the 7 years starts from May 2007? I always thought it was the original charge-off date.

That is your DoFD, when the account went in arrears.

Re: When does a settled charged-off debt disappear?

CreditJim — Tue, 03 Jun 2014 02:29:20 GMT

So I could start to dispute it if it's still reporting by the end of the year? Or now, since May 2007 was over 7 years ago?

Re: When does a settled charged-off debt disappear?

gdale6 — Tue, 03 Jun 2014 02:34:07 GMT

@CreditJim wrote:
So I could start to dispute it if it's still reporting by the end of the year? Or now, since May 2007 was over 7 years ago?

If this is still on file in Dec of this year that is the time to dispute it as being too old to continue reporting.

Re: When does a settled charged-off debt disappear?

CreditJim — Tue, 03 Jun 2014 02:35:49 GMT

Got it! Thanks for all the help. Not long to go now until a completely clean credit file and finally the end of rebuilding.

Re: When does a settled charged-off debt disappear?

Shogun — Tue, 03 Jun 2014 02:46:50 GMT

@CreditJim wrote:
Got it! Thanks for all the help. Not long to go now until a completely clean credit file and finally the end of rebuilding.

Very nice!

Re: When does a settled charged-off debt disappear?

gizmotchy — Tue, 03 Jun 2014 03:10:26 GMT

One thing I will say, since I've seen it referenced elsewhere on the boards, is that occasionally, when a tradeline is within 6 months of naturally falling off, you can request the CRA's to delete it early, and often succeed. It's not a guaranteed thing, but it's something you could try.

Re: When does a settled charged-off debt disappear?

Shogun — Tue, 03 Jun 2014 03:13:40 GMT

@gizmotchy wrote:
One thing I will say, since I've seen it referenced elsewhere on the boards, is that occasionally, when a tradeline is within 6 months of naturally falling off, you can request the CRA's to delete it early, and often succeed. It's not a guaranteed thing, but it's something you could try.

Good one one gizmotchy, no harm in trying to ask for an early deletion.

Re: When does a settled charged-off debt disappear?

CreditJim — Tue, 03 Jun 2014 12:03:51 GMT

Would I contact the CRAs directly to request this, or raise a dispute about the account?

Re: When does a settled charged-off debt disappear?

Shogun — Tue, 03 Jun 2014 12:12:33 GMT

@CreditJim wrote:
Would I contact the CRAs directly to request this, or raise a dispute about the account?

Contact them and ask, there's no reason to dispute.