negatives on credit report--Ladyndred?

[recycbride]

What is the name of your state? Ohio Ladynred you responded to a question about 1099 form with reference to settling old debt and in your response you mentioned " Negatives can only remain for 7 years - period! Collections can NOT survive the reporting of original debt - it's a violation of the FCRA if it does!" It's possible the debt has been illegally re-aged - another violation." I'm not clear on what you meant about "Collections can NOT survive the reporting or the original debt" Can you clarify?

 

[Ladynred]

I'll try

The original debt is what drives the whole thing. If the original debt charged-off before 12/96 (when the FCRA was changed), then it could only be reported for 7 years. If the CO happened AFTER 12/96, the debt stays for 7 years from Charge-off:

"§ 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."

Once the original debt drops off your CR, so must the collections that go with it - the DOLA and Charge-off are taken from the ORIGINAL CREDITOR, NOT the CA's purchase/assignation of the debt.

I believe the following section also supports this:

"(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.

(2) Effective date. Paragraph (1) shall apply only to items of information added to the file of a consumer on or after the date that is 455 days after the date of enactment of the Consumer Credit Reporting Reform Act of 1996."


The original debt goes bye-bye at the 7 year mark - the CA cannot LEGALLY change that DOLA to 'run the statute' and keep the collection on your reports - they must drop off too.

Hope this helps

 

[recycbride]

Charge offs--Ladynred

Okay - 1 more question--sorry for being such a pest--If something is marked as a charge-off on a credit report with a date 5/96 am I correct in assuming it should NOT be on a credit report? And, if something is marked on a credit report that says "status as of 8/1996: collection account", how does that work with regards to time limit? Thanks again

 

[JETX]

Actually, the allowed time for the debt being reported on your credit history depends on the type of debt.

FCRA (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:

(1) Cases under title 11 [United States Code] or under the Bankruptcy Act that, from the date of entry of the order for relief or the date of adjudication, as the case may be, antedate the report by more than 10 years.
(2) Civil suits, civil judgments, and records of arrest that from date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period.
(3) Paid tax liens which, from date of payment, antedate the report by more than seven years.
(4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years.
(5) Any other adverse item of information, other than records of convictions of crimes which antedates the report by more than seven years."
Source: http://www.ftc.gov/os/statutes/fcra.htm#605

From the above, you can see that if a debt is in the form of a judgment, it can be reported until the expiration of the judgment itself... which in most states is longer than the 'normal' seven year period.

 

[recycbride]

negatives--credit card debt

I'm referring to credit card debt

 

[Ladynred]

If its marked as a charge-off as of 5/96, then it should NOT be on any credit report. Since this happened BEFORE the change in the FCRA, then the drop-off should have taken place 7 years after the DOLA - or about 11/2002 ! DOLA for a 5/96 CO would be about 11/95.

 

[recycbride]

Ladynred--thanks-very interesting

Thank you!! Guess my hubby has some letters to write about violations. Who does he write to and is there a sample letter somewhere that he can refer to? Sorry for taking so much of your time.

 

[bigun]

Your husband should just write a letter to the CRA listing the debt and ask that it be removed because, it is obsolete.