How long does a collection stay on a persons credit report?
My fiance and I got in a little disagreement a little while ago about how long collections stay on a credit report.
He says that after 7 years they will be removed from a persons credit report – whether they are paid or not.
I disagree with that. Why would collection agencies just “give up” trying to collect money from a person and take it off a persons credit report. It doesn’t make sense to me. If collection agencies just stopped trying to collect from a person after 7 years wouldn’t a lot of people not pay their bills because it will just go away after 7 years?
Can someone clarify this for me? Thanks!
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Let me clarify this again…..I post this same stuff over and over, and yet these people still repeat the same incorrect information. It’s no wonder people are confused!
The credit reporting time is 7 years, beginning on the date of the >>>delinquency<<<….NOT the reporting date, last transaction date, charge off date……
That means (for example) if you owed a bill on January 1, 2000, and missed that payment, THAT date begins the reporting period. So on January 1, 2007 the report must be deleted.
The 180 days period keep referring to is the “built in delay” that creditors must wait before they can begin putting this on your report. It can NOT show on your report until July 1, 2000…but it DOES NOT add 180 days to your report.
Please see the actual law below.
Now class….lets move on….
The Statute of Limitations is the legal timeframe a creditor has to take legal action to collect a debt. Every state has a differant SOL time from 3-10 years (averages around 6). The SOL date is the last transaction date. THAT means the day you last made a payment, or the date you charged an item to your account.
After this period runs out, the creditor is barred from taking any legal action against you. They can still attempt to collect the debt, but since they can’t sue you there is little they can do. The dog can bark but can’t bite!
So hubby is right….after 7 years the debt disappears from your record. After the SOL expires they can’t even even sue you.
But they sure can harrass you. You can put a stop to that also by just taking the time to read the Fair Debt Collection Act and learn your rights.