Question regarding Collections that have fallen off report

[Anonymous]

I was asked today if I knew what happens to a Collection which falls off CRA's after the 7-71/2 year period. 

I do understand that they still stay with your CRA's file forever from what I have read with-out impacting your 7 year present history and scores and that was what I have told him.

Then he asked what happens after it is removed from his report and he wanted to make good on paying it off? Would it be reported again? Would it show as a negative? What would be the proper way to go about doing this?

I have no clue, nor have I found anything on this in the forums (not saying it isn't on here somewhere) just I haven't been able to find it or run across this type of question.

When in doubt I have always tried to look up information from this forum which has been of great help in the last few years. But to no avail I haven't found anything in regards to this. If any one has any insight, knowledge, and or experience in this it would greatly be appreciated. 

Thank you all for all the information and help you offer to every one on these forums. 

[RobertEG]

No, it cannot be reported again based on any later activity, including offers to pay, or -payment of the debt.

Authority:   FCRA 605(c)

This statute was enacted by Congress back in 1998 to end, for all time, these squabbles.

It, unequivicobly  sets one single, date-certain for reporting of any charge-off or collection in a consumer credit report,

for all newcredit transation for less than $150,000

That is the date of first delinquency on the OC account, plus 180-days.plus 7 years.  After that. it is absolutley barred from any (normal) inclusion in any consumer credit report except for high-end trnsactions involviihg applications for credit or insurance at a level of at least $150,000.

If he now wants to pay it off, there are NO negative credit reporting implications.  It cannot be reported again.  Payment dates on debt, whenever offered or even paid, never reset the DOFD on the OC account, and that date, and that date alone, is the statutory date that governs any future credfay9he wait reporting.  It is dead.  He can now deal with conscience with no threat of legal "bite-you0-back-in-the-butt"

[Anonymous]

Robert, thank you very much for the explanation. 

Have a great day!

[Anonymous]

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@RobertEG wrote:

No, it cannot be reported again based on any later activity, including offers to pay, or -payment of the debt.

Authority:   FCRA 605(c)

This statute was enacted by Congress back in 1998 to end, for all time, these squabbles.

It, unequivicobly  sets one single, date-certain for reporting of any charge-off or collection in a consumer credit report,

for all newcredit transation for less than $150,000

That is the date of first delinquency on the OC account, plus 180-days.plus 7 years.  After that. it is absolutley barred from any (normal) inclusion in any consumer credit report except for high-end trnsactions involviihg applications for credit or insurance at a level of at least $150,000.

If he now wants to pay it off, there are NO negative credit reporting implications.  It cannot be reported again.  Payment dates on debt, whenever offered or even paid, never reset the DOFD on the OC account, and that date, and that date alone, is the statutory date that governs any future credfay9he wait reporting.  It is dead.  He can now deal with conscience with no threat of legal "bite-you0-back-in-the-butt"

---

Thank you for explaining this. I too was looking for this information so thanks to the OP for asking. I was wondering about this since I had two things fall off before I had the funds to pay for them. I would like to get them taken care of before shopping for a mortgage but didn't know if they would then begin to report again.

[Anonymous]

---

@RobertEG wrote:

No, it cannot be reported again based on any later activity, including offers to pay, or -payment of the debt.

Authority:   FCRA 605(c)

This statute was enacted by Congress back in 1998 to end, for all time, these squabbles.

It, unequivicobly  sets one single, date-certain for reporting of any charge-off or collection in a consumer credit report,

for all newcredit transation for less than $150,000

That is the date of first delinquency on the OC account, plus 180-days.plus 7 years.  After that. it is absolutley barred from any (normal) inclusion in any consumer credit report except for high-end trnsactions involviihg applications for credit or insurance at a level of at least $150,000.

If he now wants to pay it off, there are NO negative credit reporting implications.  It cannot be reported again.  Payment dates on debt, whenever offered or even paid, never reset the DOFD on the OC account, and that date, and that date alone, is the statutory date that governs any future credfay9he wait reporting.  It is dead.  He can now deal with conscience with no threat of legal "bite-you0-back-in-the-butt"

---

does this apply to student loans.  i have a federal perkins loan with dofd in 1998, that is not being reported.  if i pay it, is there a possibility that the CA can report it as paid?  or is it true to say that while student loans are still collectible after 7-7.5yr CRTP , they are not reportable?

see this thread...  i need a solid yay or nay on this one, thank you.

http://ficoforums.myfico.com/t5/Student-Loans/Student-Debt-in-Texas/m-p/775770/highlight/true#M5490

[RobertEG]

Student loans have extended CR drop off dates that extend CR incluson beyond the normal 7 year date set forth In FCRA 605(a).

For details, see the Higher Educstiion Act of 1965, codified as 20 U,S.C. 1080a(f) and 20 U.S.C. 1087(c)(3)

[Anonymous]

perfect.  thank you for the specific citations.

[Anonymous]

i'm not sure 1087 applies to me, since i did finish the program.  i graduated in 1998.

let's make sure i understand the rest.  if you need more context i'll provide it.

so... under 1080a(f)(1)

it seems i'm most at risk here, since the OC can request that the govt back the loan (unless there's a time limit to request this), which means the OC can report 7 years from the date the govt pays them.

under (2)

an OC or CA can report at any time, for 7 years from the date first reported.  this debt has been reported by the OC since 01/1997 according to EX.

it was subsequently reported by CAs, and has recently fallen off my reports.

if a new CA picks it up, they cannot report since it is the same debt that was already reported for 7 years, right?  collection activity may continue, but reporting may not?

under (3)

if i PIF, it will not be reported since i will not be in a repayment plan, and no default can be made since it is PIF.

[Anonymous]

^bump^

[Anonymous]

---

@RobertEG wrote:

Student loans have extended CR drop off dates that extend CR incluson beyond the normal 7 year date set forth In FCRA 605(a).

For details, see the Higher Educstiion Act of 1965, codified as 20 U,S.C. 1080a(f) and 20 U.S.C. 1087(c)(3)

---

ok, i figured it all out.  in my situation

under 1080a(f)(2) it stays on for 7 years from the date first reported to CRA .. (1) and (3) don't apply to me, but it may apply to others.

under 1087cc(c)(3) it stays on until the loan is PIF, regardless of any other status.

so as soon as i PIF, which will be today, it will not be reported except under 605(b), exempted cases.

yay!  

find 1080a here..

http://www.law.cornell.edu/uscode/20/usc_sec_20_00001080---a000-.html

and it's actually 1087cc(c)(3) for my perkins loan.. here..

http://www.law.cornell.edu/uscode/html/uscode20/usc_sec_20_00001087--cc000-.html