Simple question about when things start to drop off

[Anonymous]

For credit card accounts, they stay on the report for 7 years. I have an account that was closed by the issuer with a balance in 2005. There were payments made after it was closed, but then there were missed payments and it was finally charged off in 2006. Does the 7 year countdown start when the account was closed, or when I had the last missed payment?

[Anonymous]

The 7 years goes from DOFD, which is the date of the first delinquency that led to the charge off/collection status.

This date only changes if you become current prior to charge off.

Let's say:

You missed Jan 05, Feb 05, caught up in March 05 and was on time until July 05 and never did catch up again. July 05 would be DOFD.

[Anonymous]

Thanks for the information. I was hoping that since it was closed before the DOFD then it'd start when the account was closed. I guess I have a little more time before it falls off :-/

I think this was officially closed in September '05. The last payment was made in July '06. It was charged off a few months later.

I have another account that was closed in September '05 and had a 30 day late payment as recently as August '07.

[Cobweb]

Sidewinder, does a *closed* account (not a charge off) with derogs only stay 7 years from the date the account is closed? Does DOFD matter in the case of a closed account (no charge off)? I know positive infor on a *closed* account remains for 10 years from the date the account is closed. Thanks!

Message Edited by Cobweb on 07-07-2008 07:11 PM

[Anonymous]

Negative closed accounts still stay 7 years from the DOFD.

[Anonymous]

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Cobweb wrote:
Sidewinder, does a *closed* account (not a charge off) with derogs only stay 7 years from the date the account is closed? Does DOFD matter in the case of a closed account (no charge off)? I know positive infor on a *closed* account remains for 10 years from the date the account is closed. Thanks!

Message Edited by Cobweb on 07-07-2008 07:11 PM

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A closed TL that has derogs on it will remain for 7 years from date closed. The lates will remain for 7 years from date reported. It is possible that all the lates will fall off before the account is due to fall off, turning the account positive, and letting it remain for 3 more years.

From the CRTP thread-

Closed accounts: Closed accounts are accounts that are no longer available for further use. Closed accounts may or may not have a zero balance. Closed accounts with delinquencies remain seven years from the date they are reported closed, whether closed by the creditor or by the consumer. Positive closed accounts remain 10 years.

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=2689

[Anonymous]

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SanFranMatt wrote:
Thanks for the information. I was hoping that since it was closed before the DOFD then it'd start when the account was closed. I guess I have a little more time before it falls off :-/

I think this was officially closed in September '05. The last payment was made in July '06. It was charged off a few months later.

I have another account that was closed in September '05 and had a 30 day late payment as recently as August '07.

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Are you saying the DOFD is after date closed?

[Anonymous]

Are you saying the DOFD is after date closed?

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For the first account, it was closed with a balance because of lates. Payments were made on and off for about a year after it was closed, and then no payments were made and it was charged off. The first delinquency was before it was closed, but the delinquency that lead to the charge-off was a year after it was closed.

For the second account, it was never charged off. It was closed with a large balance. There were payments made over the next 2 years to bring down the balance, with a couple 30 day lates mixed in. Unfortunately there was a 30 day late almost 2 years after it was closed. (before that, there were consistent payments for a while)

[Anonymous]

SanFranMatt wrote:
Are you saying the DOFD is after date closed?

For the first account, it was closed with a balance because of lates. Payments were made on and off for about a year after it was closed, and then no payments were made and it was charged off. The first delinquency was before it was closed, but the delinquency that lead to the charge-off was a year after it was closed.

When you were making payments off and on, were you ever current on the account?

For the second account, it was never charged off. It was closed with a large balance. There were payments made over the next 2 years to bring down the balance, with a couple 30 day lates mixed in. Unfortunately there was a 30 day late almost 2 years after it was closed. (before that, there were consistent payments for a while)

When do your reports show that it should be removed?

[RobertEG]

The staus of an account as paid or unpaid, charged off by the creditor,  or placed in collection, open or closed, is irrelevant to its inclusion in your CR.  It is ONLY the date of the last delinquency on the account.  Subsequent account activity, either thru collection or charge off by the creditor, or any subsequent payments by the consumer, dont matter. 

Charge-Offs - Seven years. The time runs from the date of the delinquency, plus 180 days. If a payment was due on an account on January 1, 2000, but the debtor defaulted, and never caught up to become current again, and the account is eventually declared a charge-off by the creditor, then the seven year reporting time limit starts running on July 1, 2000, with the item scheduled to expire from his/her credit reports on July 1, 2007.

Collection Accounts - Seven years. The running of this time limit is the same as with charge-offs. The date of delinquency still refers to the original delinquency with the original creditor, regardless of when the collection agency began working the debt. This includes debts that have been bought by a collection agency. Collection agencies cannot legitimately "re-set the clock."