Help??!!

[aimeeb82]

I paid off several debts on my credit report nearly 6 yrs ago.

 

I've read online that the 7 yrs for it to be removed start from the date of it going into collection? Is this correct? Some people have told me it's from the date of your final payment. I really need to get these removed to help my credit score.

 

I was also told to refer to:

 

3. Since Sections 623(a)(5) and 605©(1) provide new rules for calculating the 7-year period that became effective in 1997, do chargeoff accounts now have different obsolescence periods depending on when the chargeoff occurred? Yes. Section 605©(2) states that the section "shall apply only to items of information added to the (CRA) file of a consumer on or after" 455 days after enactment, or December 29, 1997. Therefore, a chargeoff reported to a CRA on or after that date is subject to the new commencement-of-the-delinquency method of calculating the obsolescence period set forth in Sections 623(a)(5) and 605©(1). On the other hand, a chargeoff reported to a CRA before December 29, 1997, is not covered by the new provisions, as discussed in one of the enclosed letters (Kosmerl, 06/04/99). If a credit account was reported as a chargeoff before that date, the Commission's view has been that it can be reported for seven years from the date the creditor actually charged it off.(3)

 

But this is hard for me to decipher. Any help would be appreciated!!!

[cerberusalert]

A default should drop off your file 6yrs after the date the default was entered.

 

A Charge-off

 

Many people mistakenly think when a debt has been charged-off that it's been cancelled by the creditor. This is not true. You are still responsible for paying off the debt. However, you will not be able to use your credit card to make purchases.

 

Companies, including creditors and lenders, have profits and losses every year. They make money from profits and lose money from losses. When a creditor charges-off your account, it's declaring your debt as a loss for the company.

 

Even though the creditor has acknowledged your debt as a loss in its financial records, you don't get away free. Your creditor will add a negative entry (a charge-off) to your credit report and continue to attempt to collect on the debt.

 

An account is usually charged off after 180 days, or six months, of less-than-minimum payments. The charge-off will remain on your credit report for seven years from the date it was charged-off. If you pay the debt, it will be updated with a status of "Charged-Off Paid" or "Charged-Off Settled." Either is better than a simple "charge-off" status, but are still undesirable.

 

The only way to remove a charge-off from your credit report is to wait the seven-year period or negotiate with the creditor to have it removed after you pay the account in full.

Edited January 2, 2009 by cerberusalert

[aimeeb82]

So the date it is put on your report (not paid off) is the start date they should go by?

 

Do I have to request them to removed them or do they do it on their own? Thanks!!

[cerberusalert]

Yes from the date it was entered.

 

You should try to negotiate with them to remove it, but they'll probably dig their heels in.

 

Has your file been marked with a charge-off or a default?

[aimeeb82]

Do I call the credit bureaus or the actual collections places I worked with?

 

What exactly is a charge off?

[cerberusalert]

Default – An account usually is considered in default if it is 30 days past due. The term indicates that the borrower has not paid as required through the loan agreement, and it usually will be reported to the credit bureaus at this time.

 

Charge off – An account is charged off when the creditor deems it to be an uncollectible debt, or “bad debt”. Generally, this is when six months has passed since the date of the first missed payment.

 

A charge-off is one of the worst entries that can appear on your credit report. Creditors typically charge off seriously delinquent accounts that have not been paid on time for six months straight.

 

You could try to negotiate with whoever you paid to have it removed, but I really wouldn't hold out too much hope. I think the best you can do is get them to mark it 'paid' or 'satisfied'.

[aimeeb82]

Okay so I looked up what it was and I do think I have one maybe two PAID charge off's on my credit.

[aimeeb82]

But if they're PAID and it's been 7 yrs since the original debt isn't it the law they have to remove them? I mean they can't stay on their forever.

[aimeeb82]

But shouldn't when it's time THEY remove them rather than I have to contact them?

 

[aimeeb82]

The charge-off will remain on your credit report for seven years plus 180 days from the date of the first nonpayment per the Fair Credit Reporting Act. For example, if you stopped paying on your credit card account in July 2000 the charge-off would be removed from your credit report in January 2008.

 

Per: Getting a charge-off off your credit report

[cerberusalert]

It'll probably be nearer the 71/2 yr mark by the time the CRAs have updated their files.

[aimeeb82]

So wait it out till 7 1/2 and they should be the one who update it on their own? I'd have to get on the phone and start harassing people.

[cerberusalert]

It will automatically drop of your CRA records.

[aimeeb82]

Interesting. I had no idea. I always hear and have read today about people having to call ans argue it with the bureaus and agencies.

[cerberusalert]

Most people dispute entries on their credit files, such as defaults, when there is no enforcable agreement in place, i.e., no valid CCA. Without a valid CCA it can be proven thay a) they had no right to process data & enter a default in the first place & b) there was no enforcable debt.

[aimeeb82]

Ahh so basically wait a bit longer and if they're still there I better start the calls...

[cerberusalert]

When was the charge-off marked on your file?

[aimeeb82]

The date the debt started or final payment?

[cerberusalert]

From the date of first non-payment.

[aimeeb82]

I'll have to look at what I have printed from last yr's credit report I printed out. I'd do it again now for an updated one but I'm at work. I want to say the credit card non payment started when I was either 19/20 yrs old in March and I'm 27 come this spring. But I remember seeing all of the charge offs and such on my report last Jan.

 

I can double check when I get home later.

[cerberusalert]

But I remember seeing all of the charge offs and such on my report last Jan.

 

They'll be dated circa March 2002 so they'll drop off around Sept/Oct this year.

[aimeeb82]

And if they were first posted when I was 19 (about 8 yrs ago), they should be off by now and if not I should contact them correct?

 

Would I go to the bureaus or to the original collection agencies?

[cerberusalert]

Just see what they're dated first.

[aimeeb82]

There are several dates on last yr's Equifax I ran:

 

It has:

 

date opened (the account maybe?)

date of major first major delinquancy

 

But date reported and last payment are different on the '07 and '08 Equifax reports I ran and printed. Why? Seem to get bumped up a yr and some months on the '08 form '07 one. How come?

 

Also on my '05 Consumer Info.com print out it shows Balance Date...

 

Also why do some show "date reported" when that date is AFTER it's been paid off?

[aimeeb82]

Does the 7yrs and what not start from first major delinquincy or just the average non payment? They don't show the date of first non payment on Equifax reports.