Collection removal

[Anonymous]

Hey all,
Im a bit confused about when a collection should be removed from your credit. I understand it's 7 years, but what is it based of? I have a collection originally from Verizon, first delinquent 02/13. Jefferson capital opened a collection in 04/16. Original balance was 860, and jefferson offered to settle for 350. Just trying to figure out if I should settle/pif or wait it out. Thanks everyone!

[pipeguy]

Welcome to My Fico:

Derogatory entries must be deleted from credit reporting agencies 7 years plus 180 days from the date of first delinquency (DOFD) which is the first reported missed payment or default. 

http://www.creditnet.com/blog/credit-repair/dofd-why-it-matters.

Most credit reporting agencies remove the derogatory mark at the 7-year mark so in your case 2/2019 (probably March of that year).  Note, as corrected in my second post, this should be 2020, not 2019)

As far as the collection agency, they don't get to change the DOFD, but they can report the collection. It is possible that you can secure a "pay for delete" for the collection by coming to an agreement with the collection agency for an agreed amount - technically not allowed by the CRA's, but it's done al the time. As far as settling the debt or waiting it out for another 6 months, that's your call and it should be noted that a 6+-year-old account is not affecting your scores very much at this point.  

[Medic981]

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@pipeguy wrote:

Welcome to My Fico:

Derogatory entries must be deleted from credit reporting agencies 7 years plus 180 days from the date of first delinquency (DOFD) which is the first reported missed payment or default. 

http://www.creditnet.com/blog/credit-repair/dofd-why-it-matters.

Most credit reporting agencies remove the derogatory mark at the 7-year mark so in your case 2/2019 (probably March of that year). 

As far as the collection agency, they don't get to change the DOFD, but they can report the collection. It is possible that you can secure a "pay for delete" for the collection by coming to an agreement with the collection agency for an agreed amount - technically not allowed by the CRA's, but it's done al the time. As far as settling the debt or waiting it out for another 6 months, that's your call and it should be noted that a 6+-year-old account is not affecting your scores very much at this point.  

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Welcome to the myFICO forums!

@+1, I agree with @pipeguy 100%!

[Anonymous]

Ok, now I'm even more confused. With being first delinquent in 02/13 shouldn't that mean that it would have to be removed in 2020. Also Verizon isn't reporting at all, only jefferson capital. So does that mean in 02 2019/2020 jefferson would have to be deleted as well or would jefferson as the collection agency stay on there until 04/13.

[pipeguy]

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@Anonymous wrote:
Ok, now I'm even more confused. With being first delinquent in 02/13 shouldn't that mean that it would have to be removed in 2020. Also Verizon isn't reporting at all, only jefferson capital. So does that mean in 02 2019/2020 jefferson would have to be deleted as well or would jefferson as the collection agency stay on there until 04/13.

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My math mistake, yes 2/2020 aka 7 years.

The DOFD doesn't change as far as dropping off, you might have to fight this if the collection agency resists, but you will win. Given that the original lender (Verizon) is not reporting it, and you are not saying the debt is not valid, I'd probably go for a settlement that includes a pay for delete agreement. Note that if the collection agency is just collecting the debt as an agent of Verizon, rather than owning the debt, it won't be as easy to get a PFD/settlement, but you can try.  Note too that if the debt is past statute of limitation (for suing purposes) you have greater leverage since the collection agency has little recourse other than the nag you and use the CRA's reports. 

[Anonymous]

Update!
I did some more research about how to handle jefferson. I read some success stories about doing a complaint with the BBB. This morning I received an update from the BBB with correspondence between them and Jefferson. Jefferson sent a copy of the last verizon bill stating that I owe them 800 some dollars. They also wrote a letter stating "Based on your dispute and to resolve that matter, we have terminated collections and notified the bureaus to delete our tradeline."
😀😀😀

[Anonymous]

Just wondering why they would do that when they clearly have validated the debt.?

[Anonymous]

I am not sure honestly. I did ask about a lot of different details, dates ect. My guess is that they have a poor record log and couldn't provide all the informations I requested per my BBB complaint. Maybe?

[Anonymous]

I am not sure honestly. I did ask about a lot of different details, dates ect. My guess is that they have a poor record log and couldn't provide all the informations I requested per my BBB complaint. Maybe?

[RobertEG]

A debt collector is required to obtain the DOFD from the OC and report that DOFD to the CRA no later than 90 days after they have reported their collection to the CRA.  FCRA 623(a)(5).

The CRA must then monitor the time since DOFD, and exclude the reported collection no later than 7 years plus 180 days from the reported DOFD.

If the reported DOFD is 02/2013, then the collection an remain up until 08/2020.

That is a date-certain that applies regardless of any other date or reporting.

The fact that Verizon has not reported is totally irrelevant to the credit report exclusion of the reported collection.

The CRAs rountinely exclude at approx 7 years from the DOFD, but have up until the full 7 years plus 180 days to exclude without there being any violation on their part.