Will new payments on a charged off account restart the 7 year period on credit report?

Question

I know new payments on a debt will restart the clock for time used to collect on a debt, but what about the 7 year period that debt is removed from my credit report? Will the 7 year period start from the charge off date, the date I last paid the creditor when it first became delinquent, or the last date I make payments under a new payment arrangement? It will take me 5 years to pay off a debt if I resume payments, so if the report goes by my last payment, that means this debt would be on my report for 12 years additional years. Will a creditor agree to make the beginning of the 7 year period the year the account was charged off, even if I agree to make monthly payments until it's paid off? If anyone knows of a website with detailed information that would be better.

Answer 1

No, it will not reset the 7 yr. clock. Once an account is charged off, the credit bureau has the date of 1st delinquency, which is the date that starts the 7 yr. clock.

The FCRA states, under Section 605(c) 'running of the reporting period': "The 7-year period shall begin...upon the 180 day period beginning on the date of the commencement of the delinquency which immediately proceeded the collection activity". What this means is if you sign a contract on 1/1/00, and you do not make a payment, 6/1/00 is considered the date of 1st delinquency. This cannot change and MUST be provided to the credit bureaus by the information furnisher, so that items cannot remain on your report indefinitely. The item can then only remain on your credit report for 7 years AFTER that, or 6/1/07.

If an account was charged off and you resume payment, this cannot change the DOFD or restart the 7 yr. clock. Once a charge off appears on your credit report, that date is fixed.

Answer 2

The 7 year clock for negative information is supposed to run from the date the account became delinquent. If you are making regular payments, the current payments are actually positive information. Ask the creditor if the will report the account as 'current' after receiving 5 or 6 months of on time payments. As long as the delinquency itself is removed, the account itself can actually help your credit score.

Answer 3

my mom has the comparable undertaking with some issues on her credit document and that they do get off your credit document after 7 years yet its 7 years from the time they are opened. like my mom had something from sept of ninety 9 and it juss have been given off her credit document on the tip of sept this previous twelve months. its quarterly additionally. So if u opened them between now and march it is going to be off with the help of the tip of march this twelve months. Or if it grew to become into between march and june it is going to be off with the help of the tip of june and and so on.