Do creditors have to erase bad reports from your credit profile after 7 years?
Not all will be erased, like chapter 13 it takes a bit longer…but you have to make sure they do it. If YOU dont keep up with your credit, niether will they.
Not all will be erased, like chapter 13 it takes a bit longer…but you have to make sure they do it. If YOU dont keep up with your credit, niether will they.
March, 23rd 2010 at 12:49 am
Not all will be erased, like chapter 13 it takes a bit longer…but you have to make sure they do it. If YOU dont keep up with your credit, niether will they.
References :
March, 23rd 2010 at 1:18 am
Bad debt is erased 7 yrs after it’s paid off. Supposedly, if you refuse to pay, never say that you will pay, then after so many months it becomes "inactive" and has to be dropped 7 yrs after that, but oftentimes they will sell a person’s bad debt from one collection agency to another keeping it active until you pay it.
References :
personal experience, and Dave Ramsey’s financial peace seminar
March, 23rd 2010 at 2:01 am
The credit reporting agency is suppose to automatically remove the debt after 7 years, beginning from the date of the delinquincy.
What you need to watch for is when a creditor "re-ages" the debt, or reports the wrong date. It’s common when a collection agent receives the debt from a creditor, the delinquency day may not be correct, or even missing. So the collection agency will list a charge off date, or even the day they receive it.
If you can prove your delinquency date, it’s a simple matter to dispute the listing and get it removed.
See the info below…
References :
Fair Credit Reporting Act
§ 605. Requirements relating to information contained in consumer reports [15 U.S.C. § 1681c]
(a) Information excluded from consumer reports. Except as authorized under subsection (b) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information:
(4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years.(1)
(c) Running of reporting period.
(1) In general. The 7-year period referred to in paragraphs (4) and (6)(2) 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.
March, 23rd 2010 at 2:51 am
Bankruptcy and judgements can stay up to 10 years. There is a also a federal provision that allows some to stay longer but you need to look up the fair credit reporting act for clarification. Generally, after 7 years, they have to remove them but you need to contact the bureaus yourself to make sure
References :
March, 23rd 2010 at 3:25 am
Creditors don’t take off the credit report, the Credit Bureaus do. They do after 7 years (From delinquency) by Law….the Fair Credit Reporting Act.
References :
FCRA