How long will a negative credit stay on my account...?

Question

Here is a scenerio:
year: 2000 -- Discover Account opened
year: 2000-2002 -- Discover Account in good standing
year: 2002 -- Discover Account closed by Discover and final payment due (no payment made)
year: 2003 -- Discover Account charnged off / sold to collections (CollectionA)
year: 2003-2005 -- CollectionA Account: No Payment Made.
year: 2005 -- CollectionA Account sold to ANOTHER collections (CollectionB)
year: 2006 -- CollectionB collections Account: Settlement made and paid off/Closed.

How I have three accounts on my report.
Discover: 2000 - 2002
CollectionA: 2003 - 2005
CollectionB: 2005 - 2006

My question is, when will these be removed from my credit report. I hear 7 years, but when will the 7 years start?

Correction Now, I have three accounts on my report.

As Len Tillem says "Young and Dumb" It was an issue of being young and dumb for me :-). Please, no more attacking comments, answers only.

Answer 1

I agree with Studly and Celeste

I know OC knows better, he must have just had an off day - it happens

I just wanted to add that collectionA is in violation and should NOT be reporting. Do as Studly says and dispute it off.

The original creditor MUST be reporting a zero balance since the collection agency is reporting.
If the original creditor is not reporting a zero balance, or is reporting any inaccuracy, dispute it.
You may get lucky and see it drop off.

Look for any inaccuracy that collectionB is reporting and dispute it. Since it's paid the collector may not bother to verify.

Some inaccuracies may be
Showing a balance due
Past due
Open account
Factoring account (no "charged off" collection account can be a factored account)
Listing collectionA as the original creditor instead of the original creditor
Showing it will be reported past the original 7 year period (which is re-aging)

Those are a few things that collectors usually drop the ball on and report wrong.

For more info on how the original creditors and collectors accounts should be reporting you might read the FCRA.

Answer 2

These will come off at different times.

The original Discover Bill and Collection A will come off in 2009. Which is 7 years from the date of the last delinqency with the Discover Card(2002). However, when you paid off Collection B you should have negociated with them to remove the account at the same time. But because you did not it will come off in 2013, which is 7 years from the date of your last payment with them(2006).

Now, in a year or so you can dispute the the collection accounts. There is a good(but not guaranteed) chance if you ask for validation they won't validate them and will be removed since you did pay.

Answer 3

Studly's right on!

As per section 605 of the FCRA, the delinquency that led to the charge off is the only date you need to be concerned with.
Your last payment was in '02 and never paid anything after that, which led to the account being charged off.
So, yes, in 2 more years it will be gone. If it's not, you should dispute the entry with each bureau that's reporting it incorrectly.
The 7yr. reporting period does not restart by selling the debt to another collection agency.
I also have to agree with Bob's comment. Paying the debt off without getting them to agree to delete the account from your reports, did some damage to your credit score. The longer a debt remains unpaid the less impact it has. But not to worry, if you can hold on just two more years, your score will begin to rise.

Answer 4

I'm normally not surprised at the answers to this question.....many of these responders are wanna-be collection agents and always get this wrong.

But OC!!!! My main man! You are always right with your answers! You are wrong too???? All the times I've answered this???

OK, once again...lets all open our books to the Fair Credit Reporting Act. Negative items can only be reported for 7 years, beginning from the date of the delinquency.

PERIOD! It can not be restarted with a payment. It can not be restarted if another collection agency buys it.

Trust me, I've chased a lot of agents trying to do this very thing. I've helped a number of people file lawsuits for this.

The date of your delinquency was in 2002, so this report must be removed in 2009 (two more years). It makes no differance that you paid it off. All they are required to do is show that it was paid/settled, and it now has a zero balance. But it will still be on your report as a negative item.

OC's advice was right...you must get the collection agent to delete the item once you have paid the debt. Since you didn't, this won't come off for 2 more years (sorry).

Also note that it is illegal to post multiple items for the same debt. The only person who can post is the one with the legal right to collect it. If you send a dispute letter to the credit bureau they will remove the duplicate items.

Answer 5

Well here is the kicker if these accounts get transferred to another collection agency it starts all over what i suggest is pay to go through credit repair and the can take these off for you now and you will not have to wory about it basically they dispute all the negative accounts on your credit for you by sending 20 letters to the same company well if they do not respond in 30 days these items get taken off try http://www.creditbureauexperts.com

Answer 6

The irony is that paying your bills can actually hurt your credit. It goes from last activity, so your credit would have cleared up faster if you hadn't made any payments after the original account was closed.

Answer 7

2006 .. wait 7 years... just wow, pay your bills on time next time and quit spending more than you earned or have.

Answer 8

36 months and pay off