Question about maximum time old debts can be reported.

[Anonymous]

Hello all! I am currently rebuilding my credit and have made some good progress so far. I've gone up from a low of 499 to currently a 616. I recently paid off a collections from NES and I now only show one collections account from Portfolio Recovery.

Here's the story on it:

The account started as a $500 credit card in 2005 with Capital One. My credit report no longer shows the original account and I believe my last payment was in 2011 (over the 7 year reporting threshhold.) With that in mind, I thought I could dispute this as invalid debt which I did and was denied. I can find my last payment date to capital one through bank statements (I have ordered statements dating back to 2012 today just in case.) I can provide these to credit beaureas if that would work..

My question is this:

Does the collections agency have seven years to report this debt after they buy it from the orginal creditor, or are they only allowed to report it seven years after the last payment to the original creditor? I have not entered into any agreements, acknolwedged the debt as mine, etc so none of that should apply.

If they are still able to report, I know that this specific agency accepts pay for deletes by default so I will go that route once I save up a little more money.

Any help is appreciated! I'd love to be able to get a new house soon now that my stupid choices are behind me..

Thanks,

Aaron

[Red1Blue]

Did NES remove the collection from your credit report ?

[simplegirl]

Did you let them know the account is too old to be on your report? Collections don’t have their own 7.5 year reporting period they are attached to the original creditor account. Are you sure that collection is not for a different account? If capital one account is gone portfolio should have went with them.

[gdale6]

Welcome to myFico

The OC sets a DoFD once the account reaches CO status, all subsequent owners must abide by it and it can only run for one period of 7.5yrs max from that DoFD.

[RobertEG]

The FCRA does not specifically impose time restrctions on when a creditor or debt collector can report information to a CRA.

Rather, it imposes restrictions on the CRAs that prevent the CRAs from including negative items of information in normal credit reports they provide to other parties once an item of iformation has exceeded the max period defined under the provisions of FCRA 605(a).

The fact that the exclusion provisions are imposed on the CRAs and not furnishers reporting to a CRA is further evidenced by FCRA 605(b), which exempts all of the normal exclusion provisions of section 605(a) in very limited situations, such as when a potential creditor makes an inquiry relating to a consumer-initiated request for credit in an amount of $150,000 or more.

In such circumstances, the reqesting credtor can receive a full report of any and all reported information irrespective of when reported.

With specific respect to collections, FCRA 605(c) was added to the FCRA to clarify that the normal exclusion by thr CRA of a reported collection is based only on the date of the first delinquency, and no other date, with normal exclusion mandated no later than 7 years plus 180 days from the reported DOFD.  No other date is relevant to exclusion.

If a debt collector were to report their collection after 7 years plus 180 days from the DOFD, it would not appear in your nornal credit report.

Wether or not the debt is paid is totally irrelevant to credit report exclusion of a reported collection.