"7-7.5 Year Rule" Question

[Anonymous]

I have been paying monthly on a Cap1 cc that the original 30 day late was back in May of 2005.  The acct has been closed since 2005 and was "referred" to a CA, but the CA has not been reporting on my credit report (although they have made several calls trying to get me to pay them instead of paying Cap1 directly as I've been doing religiously).  The problem is that the acct is not being listed as a "charge off" on my credit report, but merely as "account closed" and each and every month since 2005 they (Cap1) are reporting it as 120 days late. This acct will be paid in full in Dec of 2010.  Will this entire acct come off my credit report in in Nov 2012 (which is May 2005 + 7.5 years) or will the entire acct stay on there and each individual monthly reported 120 day late come off one at a time each month 7 years from the date it was reported? (which would mean it wouldn't be until DEC 2017 until the last individual 120 day late drops off)

[llecs]

It'll likely come off on or about 7 yrs from the DOFD. DOFD is the date you first went delinqueny and never recovered which would be since 5/2005. I bet it'll fall off in 5/2012.

[LIGHTNIN]

Your acct listed as "account closed 120 late" is better then reported as a Charge off, score wise.

I am still learn here so dont take this as 100%correct. But I believe since you are paying on this and will be current on Dec2010

That your account could turn from a negative to reporting as a positive account.

I maybe wrong, if I am others will chime in and we will have a great learning experience. lol 

OC drop off at 7yrs and CA drop off at 7.5yrs.

[Anonymous]

Only an OC late will drop off at 7 years.  If it is a CO it will drop off at 7.5 years.

[RobertEG]

"Accounts" dont drop, under FCRA 605(a), at any time. 

All that FCRA 605(a) mandates is what the CRA can include in the reporting of derogs against an account.

Montly derogs on the OC account drop from credit reporting, each individually at 7 years from their own dates of delinquency.  DOFD has zero relevancy.

The 7 1/2 year "rule" only applies to charge off and collection reportings made to your CR.  They go back to the DOFD on the OC account.  Once 7 1/2 years has expired from the DOFD on the OC account that formed the basis for the debt that was later a CO or CA, then that CO or CA can no longer (normally)  be reported in your CR

But that is not absolute.

But nothing actually drops from your credit file, only restrictions on what a CRA can report on its content.  And FCRA 605(b) has an exemptions to the so-called "7 year" and "7 1/2 year" limitations.