How long will a collection stay on my credit report?

How long will a collection stay on my credit report?

I get a lot of questions about how long will a collection stay on a credit report? It is required under the Fair Credit Reporting Act to be removed seven years after the first delinquency date.

The first time that a borrower was late that resulted in that becoming a charge off or sold to a collection company. The date of first delinquency is the starting point. Seven years and six months from the date of first delinquency is when that account will fall off per the Fiar Credit Reporting Act. It’s not based on when the creditor wrote the account off or anything like that. It is the delinquency that caused the account to go bad. Seven years from that date, all bankruptcies also come off seven years except for chapter seven, which will stay on credit reports for ten years from the discharge date is when chapter 10  will be removed.

Unpaid tax liens will stay on forever, you can’t beat Uncle Sam. Good accounts will actually stay for ten years after they are closed. Most other accounts come off in seven years except for chapter 7 bankruptcy which goes ten years.

I was in front of the CFPB a while ago in Detroit. We were talking about credit and one gentleman stood up and he said collection companies are selling his debt over and over  again, collection companies were selling his debt to other collection companies and the collection companies just keep reporting the same account over and over again.

That is actually against the law for an account to stay on consumer’s credit reports beyond what is described under the Fair Credit Reporting Act. If that person  from the CFPB meeting was able to figure out when his date of first delinquency occurred on that debt. Then he could use the validation a debt letter. You can get this type of behavior stopped, you can stop them from selling your debt over and over and then “re aging” it. That is what they call it. That is actually against the law they are not allowed to do that.

The debt is required by law to be removed, consumers have to be actively engaged in this situation to get it removed and get it taken care. Have faith  it can be done, you just have to figure out when you first fell behind on the account. Then seven years after that “it’s off”. Start with the collection company, write them a letter, if they don’t respond, go to the repositories directly. How long will a collection stay on my credit report? Now you know!

FCRA page 23 in 605 (c) (1):

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.”

If you want to see more videos about credit and credit scoring check these out at www.thecreditguy.tv. If  you are a mortgage lender please share this on your Facebook or LinkedIn page.   If you have any questions, leave them down below I’d be happy to answer them.

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Go to www.getloanready.com to find other ways to improve your credit score. I’m Dave Sullivan here for the credit guy TV so you with a little bit me we’re going to change the credit industry thank you

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