7 years from 'when' does derog credit stay on reports and affect scores?

[Anonymous]

I keep hearing and reading that derogatory credit stays on your reports for a max of 7 years. Is this 7 years from when an account, for example, first experienced a late payment, or is it 7 years from the last time a late payment was made to the account? If a late payment was made in 2000 on a now closed account, it should be off my report by now. But if a late payment was made on that same account two years ago, should I expect to still see it on my reports for another  5 years?

Also, If I have settled on an account, is the 7 year period from date of last activity?

Say an account was listed with collections in 2003, and it's not until this year that I was able to pay it off in efforts to stop the collection effort and get it eventually off my report... does the 7 year timeframe start when the account went into default, or will it stay on my report 7 years from this year, when i settled on the account and created 'activity' on it?

thanks!

[llecs]

Welcome to the Forums!

The 7 - 7.5 yrs is based on the FCRA (federal law) and is called CRTP. CRTP is 7-7.5 yrs from DOFD, or when your first went delinquent. It has zero to do with any payment or your last payment made. So, if you look on a CR that has an account that started at 30 days, then 60, then 90, then 120, CO, etc., DOFD is the day it first went late, and never recovered and the 7 yr clock starts from that point.

If you ever settle an account that was very late or CO'd, the same DOFD applies in determining the removal date. It has nothing to do with paying it or settling it.

Now SOL, or the time limit you can be sued for a debt, can be based on your last payment. For example, in some states, if you have a debt from 2001, and you pay nothing up to today, but you make a payment today, your SOL clock can restart from today based on the time allowed by your state. YMMV.

[RobertEG]

In simple terms.  Just go back to your account records.  Locate the bill that you were last dlelinquent on. 

Add 30 days to the bill due date, and that is the DOFD.

If the OC never charged off the account (CO) or placed the account into collection,then the derog will fall 7 years from the DOFD.  If they did do a CO or referred it for collection, that only adds 6 months.  Later payments, offers to pay, date of CO, date of a CA post, or closing of the account, have NO affect on the FCRA dropoff date. 

But, as llecs has cautioned, falloff from your CR has nothing at all to do with whether or not a creditor can sue for paymet of the debt. 

That is an SOL issue, and in many states, offers to pay, or later payments, can extend the SOL, and thus their legal ability to sue.  Dont confuse CR reporting with legal obligtion. They are totally unrelated.

Message Edited by RobertEG on 11-08-2008 03:50 AM

[MattH]

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@RobertEG wrote:

In simple terms.  Just go back to your account records.  Locate the bill that you were last dlelinquent on. 

Add 30 days to the bill due date, and that is the DOFD.

If the OC never charged off the account (CO) or placed the account into collection,then the derog will fall 7 years from the DOFD.  If they did do a CO or referred it for collection, that only adds 6 months.  Later payments, offers to pay, date of CO, date of a CA post, or closing of the account, have NO affect on the FCRA dropoff date. 

But, as llecs has cautioned, falloff from your CR has nothing at all to do with whether or not a creditor can sue for paymet of the debt. 

That is an SOL issue, and in many states, offers to pay, or later payments, can extend the SOL, and thus their legal ability to sue.  Dont confuse CR reporting with legal obligtion. They are totally unrelated.

Message Edited by RobertEG on 11-08-2008 03:50 AM

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All correct.  Also, SOL is a matter of State law but FCRA is a matter of Federal law, which means specific answers to questions about SOL must come from a person familiar with the laws of your State.  A further complication in some cases may happen when multiple States are involved: if you have moved since the transaction in question, or the creditor is in a different State, or whatever.

Finally, whether they may sue at all if SOL has run its course varies among jurisdictions.  In some places it is against the law for them to sue if they know SOL has expired.  In other places, they may file suit anyway, hoping you won't show up: in such a State if you show up you can get the Judge to dismiss the case on SOL grounds, but if you don't show up they can get judgement against you.  These details vary, so if SOL is an issue for you then you must talk to somebody familiar with the laws affecting your case.