Forums
I had an old credit card account that I defaulted on. Last payment was around mid 2002. It is no longer on my report. A collection agency is reporting on my report with an open date of 5/2005. My question is can I dispute this account and try to get it removed since the last activity of any kind on this account was in 2002 or does it not matter and it goes by when the collection agency reported it and stays on for 7 years from that time? Im trying to clean up my report and since this is way past the sol they cant collect on it.
thanks for the help
old credit card account
Hi Guest,
As the Statute of Limitations (SOL) has expired you can try disputing this item with the credit bureaus. Another thing that you can do is validate the debt. However, the collection process can still continue even if the SOL has expired.
Thanks,
Aaron
I understand they can continue to try and collect, but what Im asking is should the account remain on my credit report for 7 years from the date of first delinquency or from the time the credit agency first reported it? If its the latter what stops a Ca from not reporting it for a few years then starting to report it and it staying on an additional 7 years?
reaging of debt
Hi Guest,
Any information regarding the account will remain on your credit report for 7 years. When an account gets handed over to a collection agency, the agency starts reporting it. This is legal and cannot be stopped.
Thanks,
Aaron
so what your saying is it doesnt matter when the last payment is or the chargoff its when the ca starts to report it that the 7 years starts?
reaging of debt
Hi Guest,
The time for which the account can get reported (the information on the account), and the time for which it can be collected are two very different things.
The time for which information regarding the account will stay on your credit report is known as the Statute of Limitations (SOL) on the report timing. On the other hand the more important SOL is the one in regards to the debt. It starts from the day of last payment made. This date does not change even when the debt is sold off. So, can I know when the last payment was made?
However, the SOL on credit report changes when the debt is sold off to a collection agency. That is, when the debt was with the original creditor, he was reporting it to the credit bureaus. This information will remain on your credit report for 7 years, after which it will fall off. When the debt gets sold off the collection agency (CA) starts reporting on the debt. Now, the information reported by the CA will remain on your report for 7 years too.
Hope I have been able to clear your doubts.
Regards,
Aaron