Is it true that if you make payment or settle with a creditor right before it 's 7 yr release date.., that you're doing your report more harm than Good. I think its call REDATING' and it makes the clock start ticking all over.
2006-08-30 23:00:21 · 5 answers · asked by Anonymous in Business & Finance ➔ Credit
They go off the date of last activity, so some creditors or collection agencies may interpret that to mean last PAYMENT, which would be the recent one and start the 7 year clock over again.
To protect yourself, get in writing BEFORE you pay that they will DELETE the account from the 3 credit bureaus. (If they just want to mark your account PAID COLLECTION or PAID PROFIT & LOSS, this will still show up on your credit and probably won't help you).
2006-08-31 04:46:05 · answer #1 · answered by Anonymous · 0⤊ 0⤋
According to § 605(a) of the Fair Credit Reporting Act,
(a) Information excluded from consumer reports.
Except as authorized under subsection (b) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information:
. . .
(4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years.
If you make a payment that is charge off on a debt -- the seven year date begins from the date of original deliquency! If you pay off the item right before its 7 years release date -- it will drop from your credit report when the 7 year mark is reached.
Redating, or re-aging, is a violation of the Fair Debt Collection Practices Act and Fair Credit Reporting Act. Please refer to the website for follow-up action.
Please be advised that the measurement date of the date of original delinquency NOT the date of last activity!
Good luck.
2006-08-31 02:44:57 · answer #2 · answered by DaMan 5 · 1⤊ 0⤋
It's always good to pay off your debts (If the creditor really wants to make your life miserable, they can actually "resubmit" the debt for another 7 years on your credit report) However, you are correct that if you pay off a debt, it stays as a "paid" collection on your credit report until seven years after you've paid it and that can look bad. However, you can talk with a collection agency and have them, when you pay off the debt, take it off your credit report. Just make sure you get the promise in writing.
2006-08-31 00:59:07 · answer #3 · answered by Vadalia 4 · 1⤊ 0⤋
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2006-08-31 00:52:02 · answer #4 · answered by Anonymous · 1⤊ 0⤋
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2006-09-01 12:37:02 · answer #5 · answered by Anonymous · 1⤊ 0⤋