Date of last activity question?

[Anonymous]

If I'm waiting for unpaid debt to fall off my credit report, am I going by the "Date of last activity" or when the account was opened? I've got some debts from 2002 that have been sold numerous times to different collection agencies and I have no intention of paying as this point ... thoughts? Thanks for the advice

[Anonymous]

From what I understand it is based on your date of first deliquency (DOFD) which would be the first month in which your account was 30 days late. It can differ from your last activity date.

[RobertEG]

Debt does not drop from your credit file, only the ability of the CRA to continue to report delinquencies of your payment of the debt when issuing most credit reports based on on credit file with them.

OC "accounts" and the credit file associated with that account, are not regulated under the FCRA to be deleted  at any time.  It is only each individual delinquency that can no longer be included in most credit reports, as set forth in FCRA 605(a)(5), at 7 years from the date of each reported delinquency.  DOFD has nothing to do with the dropping off of OC account derogs.  Neither does any OC account activity after the date of the delinquency, such as any DOLA due to payments, etc.  Expiration of 7 years from the date of a first delinquency only requires deletion of that delinquency, not of subsequent delinquencies.

DOFD enters into the equation only when determining when a collection account must be deleted from your CR.  Under FCRA 605(c), the CA must be deleted at 7 1/2 years from the DOFD, regardless of any subsequent delinquencies, or DOLA payment activity.  Collection "accounts" are not accounts with the consumer, and regulated totally different from OC accounts.

One reason for this distinction is that expiration of 7 years from an OC delinquency does not mandate that a CRA must delete if from your credit file.  It only mandates that they can no longer report it in most credit reports they issue based on your credit file.  However, FCRA 605(b) still permits prior delinquencies to be included in your CR forever if you apply for any credit involving a principal amount of $150K or more (such as a mortage loan).  FCRA 605(b) is a total exemption of all of the reporting restriction of FCRA 605(a).

While it may not be scored in FICO, it is still in your credit file, and has not been deleted just becasue it cant be reported for lower transaction credit pulls after 7 years.  It is still there for manual review.

Message Edited by RobertEG on 07-02-2009 11:59 PM

Message Edited by RobertEG on 07-03-2009 12:05 AM

Message Edited by RobertEG on 07-03-2009 12:17 AM