Fair Credit Reporting Act?

Question

According to the FCRA, section 605(c) runnin gof reporting time, it states that, "In general. The 7-year period referred to in paragraphs (4) and (6) of subsection
(a) shall begin, with respect to any delinquent account that is placed for collection
(internally or by referral to a third party, whichever is earlier), charged to profit and
loss, or subjected to any similar action, upon the expiration of the 180-day period
beginning on the date of the commencement of the delinquency which immediately
preceded the collection activity, charge to profit and loss, or similar action."
My question is: What about a bill ( medical services from 10/28/2002-12/18/02) that was NEVER paid on, has NOT been sent to collections. When would the SOL have started on this(since there has never been a payment on this account) Would it be the last date of service-12/18/02? If my state of NY is 6 years, does it mean that they have until 2008 to try to collect payment? Thanks!

The thing is though, I check my report monthly and this hasn't EVER gone on my credit though. (was supposed to be taken care of by insurance) Hasn't BEEN sent to collections either...

So let's say sol started on 1/1/03, would medical bills still fall under the 7 year reporting act? (so it would fall off of credit after 1/1/10) or are medical bills treated differently then credit card bills?

Where would I be able to find the SOL laws for NY?

Answer 1

Don't confuse the Statute of Limitations (SOL) with the reporting period. People get these two confused all the time.

The FCRA controls the reporting period. In the case of your medical bill, consider it in default 30 days after the date of service -- all that verbage you quoted is basically saying the default date. 7 years and 180 days from that default date, the negative will age off your credit report. Nothing can re-start this clock.

This does not mean that collectors cannot continue to try and collect. They just can't report it and it won't affect your credit rating.

The SOL is the time allowed to bring lawsuit and varies from state to state. This clock starts from the default or payment, whichever is later. Payment will re-start the clock. In some states, even agreeing to payment will re-start the clock.

The SOL is an affirmative defense if you are sued for the debt. Collectors can still try to collect. They just won't win in court.

If collectors are not currently hounding you for payment, it is entirely possible that this debt will just age off.

Answer 2

The reporting period for bad debt is 7 years under federal law (FCRA).

Do not get that confused with the Statute of Limitation(SOL) for collection delinquent debt that varies from state to state.


They can try to collect the debt 6 years from the date that the bill became delinquent (cause of action occured) in New York. If it was due 30 days later 1/18/03 it would have been delinquent 1/19/03.

If it was due on the day of treatment it would have been delinquent on 12/19/02.

The reporting time for medical bills are the same as for credit cards - 7 years.

Statute of Limitation on debts by State,
http://www.bankrate.com/brm/news/cc/20040116b2.asp

Answer 3

You seem confused. The federal Fair Credit Reporting Act is about "credit reporting" and covers what may be reported to and by credit bureaus. It has nothing to do with the rights of a creditor to collect a debt or the Statute of Limitations. Collections are governed by state business law. They can still report that you haven't paid, even though the SOL prevents them from collecting. I hope this helps.

Answer 4

They may have been trying to collect it but with no luck. Probaly a miss-spelled address. But it will be on your report. Medical bills will not be removed. Thanks to our president, George W. Bush, so you will have to pay it no matter what.