credit reporting (hey lindsey)
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| Thu, 03-30-2006 - 4:06pm |
i thought this needed to be it's own thread... is this okay?
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The time limits for various types of information to appear on consumer credit reports are set by the federal Fair Credit Reporting Act. (this information comes from www.cardreport.com).
Making payments or partial payments on bad debts does not effect the running of the credit reporting time limits, except in the case of tax liens and federal student loans.
All other types of items should expire on schedule, based on the original dates, regardless of when or whether they are paid. There was previously a great deal of confusion over the starting point, which could have been interpreted as the date of the last activity on the account. This resulted in the possibility of "re-setting the clock" on an old bad debt by making a payment on it, or by paper-shuffling on the part of collection agencies.
The issue was clarified in the 1996 amendments to the FCRA, which set a specific starting date related to the original delinquency date (see FCRA Section 605 (c) (1).)
Time Limits:
Inquiries - Two years.
Late Payments - Seven years from the month in which the late payment was due. If there are multiple late payments in one account item, then they will each expire individually.
Charge-Offs - Seven years. The time runs from the date of the delinquency, plus 180 days. If a payment was due on an account on January 1, 2000, but the debtor defaulted, and never caught up to become current again, and the account is eventually declared a charge-off by the creditor, then the seven year reporting time limit starts running on July 1, 2000, with the item scheduled to expire from his / her credit reports on July 1, 2007.
Collection Accounts - Seven years. The running of this time limit is the same as with charge-offs. The date of delinquency still refers to the original delinquency with the original creditor, regardless of when the collection agency began working the debt. This includes debts that have been bought by a collection agency. Collection agencies cannot legitimately "re-set the clock."
Lawsuits And Judgements - Seven years or until the governing statute of limitations has expired, whichever is longer.
Bankruptcy (Chapter 7) - Ten years (from the date of entry of the order for relief or the date of adjudication.
Bankruptcy (Chapter 13) - Seven years.
Paid Tax Liens - Seven years from the date of payment.
Unpaid Tax Liens - Forever (unless paid - see above.)
Unpaid Federal Student Loans - Forever (unless paid, after which they can appear for seven years.)
The above time limits apply to credit reports which would be available to creditors for most types of credit applications. However, the credit bureaus are legally permitted to disclose older information in the following situations:
* A credit application involving a principle loan amount of $150,000 or more.
* An application for a life insurance policy with a payout of $150,000 or more.
* An application for employment in a position paying $75,000 per year or more.
Full text of Fair Credit Reporting Act:
http://www.cardreport.com/laws/fcra/fcra.html
Basically, if you have items on your credit report that should have been removed by the credit reporting agency, please contact them and request that it be removed, pursuant to the Fair Credit Reporting Act.

lindsey, you posted this on another thread in response to me... i said there's things on my report that have been there a good ten years.
so i'm guessing that the websites you referenced will help me figure out what to do about them? i will be looking into them thouroughly.
thanks for the info.
Hello,
The website doesn't offer a solution for items showing up on your report after they should expire. I suggest contacting the credit agency (in writing) and asking that an expired item be removed. If they do not comply, there are instructions for non-compliance in the Fair Credit Reporting Act info.
Sincerely,
Lindsey Schocke
Sincerely,
Lindsey Schocke
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