From what point does a negative account stay on your credit report for seven years?

Question

I have heard that the 7 years starts 6months after the account went delinquent and I have heard that it starts from the last activity-which is true?

Answer 1

Except for Leana S's answer, everyone is "mostly" correct. Let me try to explain the errors, and why people are getting confused.

Debts can only be reported for 7 years, beginning on the date of the delinquency. That means if you owe a bill on Jan 1, 1999, and you missed THAT payment, then you are now considered delinquent, and that is the starting date.

It makes NO differance when they begin reporting this on your credit report. A collection agency could receive it in 2004 and begin listing it in that year, but it STILL must be deleted from your credit report on Jan 1, 2006, the 7 year deadline.

Now here is where this 6 month confusion comes in. Once you are delinquent, they can not post anything about this debt for 6 months. Therefore on July 1, 1999 the can begin to list it on your credit history. But it still must be removed 7 years from the delinquency date (Jan 1, 2006).

This is confusing if you read the Fair Credit Reporting Act. The problem came when the act was revised in 2003, and a conflicting portion was added to the law. The FTC issued a position paper to clarify this. See the link below for info and sources.

Edited:

I read Lianne's response, and checked out her source link.

"Collection Accounts - 7 years
it is 7 years from the last 180-day late payment in the ORIGINAL account."

Clear as mud....sorry. And it's still wrong.

Lianne, perhaps you could look at my link, and examine the FTC position papers on this subject, along with the actual law. Nowhere in the law does it even refer to collection accounts, and my response about the 180-day period stands. This link is a terrible source of information.

Answer 2

The 7 yrs. starts 180 days (6 months) from the first date of delinquency.

Studly, normally I would agree with you, but this time you are incorrect.

I've read the Staff Opinion letters (Johnson, Kosmerl and Amason) and the FCRA and the 7 yr. reporting periods starts once the account has become 180-days past due (major delinquency) and the account charged off or sent to collection.

Example: Debts assumed after 12/97: Your payment due in Jan. 98, you missed the payment. The creditor takes action (collection, charge-off...) on the debt on Aug. 98. The 180-day count begins on Jan. 98 and runs til July of 98 at which time the 7yr reporting period begins and runs til July 05.

Answer 3

From the date of last activity. It starts with the date that your account became late, which led to the charge-off or late payment history. If you missed a payment in 3/2001, but they didn't report it until 3/2003, it still has to come off 7 years from 3/2001.

As to the first comment, collection agencies often do "re-report" and bump up dates, change amount you owe to reflect more than what you owe, but it is all illegal activity.

Answer 4

Last activity--- though if you have paid it in full and it was FIRST reported 7 years ago, you might be able to get it removed by doing a dispute-- but generally it is 7 years after the last activity.

Answer 5

The seven years starts from the last activity date shown on your credit report. Although some companies can re-report on those negative accounts which can in turn hurt your score more with th multipule reportings.

Answer 6

Negative information about a credit account stays on your credit report for seven years from the date that it was first reported on your account. The clock starts with the initial reporting.

Answer 7

It varies for different kinds of accounts.
The timing is different for collection accounts, late payments, leins, etc...

For a clear and simple breakdown

see "The Credit Report Timeline" at
http://finance-girl.blogspot.com/2006/09/credit-report-timeline-most-of-us-have.html