Are collections on your credit report permanent?

Question

even if you paid the collection off? That what I was told. That tehy don't go away, they just show a negative balance. If they can go away, what steps do you have to take to make that happen?

Answer 1

Complex question. There are 3 credit reporting agencies in the US that operate separately. You need to look at each credit report. You can get one once each year for free.

Nothing on your credit reports is "permanent." Every item goes away at some point, especially when the card company stops reporting to the credit agencies. Do you have any evidence at all that you have paid the collection account in full or settled with them?

It's best if you have some proof of paying the "collection" in full or that you negotiated a settlement. The creditor should provide a letter stating that the account was paid in accordance with its terms. If you don't have that letter, write to them and request one.

Federal law requires the creditor to provide the letter, they cannot ignore your request. Contact any reporting agency that shows the collection and present them with the letter by mail. The agency is required by law to delete the item or change the line item to show "paid in accordance with the terms" or "paid in full."

In the US you have a lot of rights today beyond your right to get a free credit report and to correct errors. You can do this on your own, but there are also private companies that will assist you for a fee.

Answer 2

Today I am going to begin something new...my daily "Moronic Answer Award"...this award will go to people who give terrible and damaging answers here...who fail to research their answers first...who don't even pay attention to people who have answered the same question dozens of times (with sources) and continue to give the wrong answer.

Lots of candidates today...but "O O pick me!!" gets todays award.

Did you even read the book that you give as a referance?

This is not a difficult question! The Fair Credit Reporting Act very clearly states that negative information can only be reported for 7 years, beginning on the date of the delinquency. It can not be "re-aged" by selling to another collection agency. It makes no difference if the debt is paid or not....7 years! PERIOD!

The FCRA also goes into the procedure required to get negative items removed from your report.

Note that if the report is "fair and accurate" it can not be legally removed, no matter what you do.

There are only two ways to get accurate items removed from your credit reports.

1) The creditor must delete it.
2) The creditor fails to respond to a dispute investigation from the credit bureau.

That said, please refer to the links below. They will explain the Fair Credit Reporting Act, and give you instructions on how to dispute these items.

O O pick me!! You listening!!!!

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Answer 3

If they are paid off then after 7 years they are dropped off your records. But it is still your obligation to check and ensure they are gone with all 3 credit reports Trans Union, Equfax, Experian. If they are not paid off after 7 years they will be still dropped, however the debt can be sold and reactivated for your debt and it will take another 7 years from that point till its gone. The book below is a great book that explains in plain detail what goes on and uses examples to help explain.

Answer 4

There are lots of ways to accomplish what you want but only 1 best way. If you have lots of time and persistence, you can take a stab at it yourself. I believe, however, that your credit is at least on the same level of importance as taxes (which most people have professionally completed). I know of a non-profit company that does all the leg work for you and hopes to improve your score 90 points in 90 days. Check out the credit repair link at www.totaldebtsolutionsllc.com

Answer 5

No, slow paing stays on for 2 years (after you pay on time). Charged off accounts stay on for 7-10 years (depending on the reporting agency), BK stays on for 7-10 as well but it clears your credit history and the lendors will see that and the red flag goes up. Can you say 35% interest?

Also, you cannot have bad credit removed from your report SO DONT PAY SOMEONE THAT SAYS THEY CAN DO IT.

Update, studly is correct, sorry OO pick me, you have your facts wrong.

Answer 6

They go away after 8 years.

Answer 7

It's even not a kinda problem.

The loan of the amount can be extremely tiny amount

if you go and see the guinness homepage and realise yourself.

www.guinness.aaa.to

It where the problem becomes an answer.