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50wiggles

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Date of when collections fall off credit report
Does Credit Karma show the date of when my collections will fall off of my credit report? It use to but I can no longer find this information.

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Just Trying to Clear up Some Information

Helpful to 77 out of 88 people

Let's say you have a Bank X credit card that Bank X (the original creditor) charged off as bad debt in July of 2012 (the date of the LAST delinquincy).  Time goes by and it is now July of 2016 (4 years later) and a collection agency comes calling and also has posted the collection account on your report (Note: this account is on your report ALONG WITH the original delinquint account from Bank X).  You have some options: 1) You just choose to avoid paying the debt (risking wage garnishment or a law suit), 2) you agree to pay the debt via settlement (paying less than what you owe) 3) you agree to pay the debt in full.  

If you agree to pay via settlement, this isn't ideal, but it is still better than paying nothing at all.  You can try to arrange to have the collection account removed from your report after fulfilling your settlement terms.  Note, however, that most collection agencies won't remove the collection from your report unless you agree to pay them the full delinquint amount. The Credit Bureau can't remove the collection from your report, only the collection agency can agree to do this.

So now the question here is: "When will this collection fall off of my credit report?" 

Go back and remember that Bank X (the ORIGINAL creditor) reported your last delinquincy in July of 2012, and you then received the collection notice in July of 2016.  The collection account will fall off of your credit report 7 years from the date of the LAST DELINQUINCY reported by the orignal creditor  + 180 days.  In this particular case, this would make the collection fall off of your credit report in January of 2017.  

A lot of people believe that the collection will stay on your account for a full 7 years (in this case 2023), but that is completely false.  The clock does NOT reset when you start paying the collection, this is a myth.  Even if you choose to not pay the collection, it must fall off your credit report after 7 years + 180 from the date of last delinquincy, as reported by Bank X.

To sum up, when your original debt from the original creditor turns 7 years old + 180 days, it will come off of your report.  The collection account must also come off of your report with it.   

Reply by
Amberdragonfly31

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Helpful to 17 out of 20 people

Really great  helpful information (and takes some stress off, too) but if I'm not mistaken, I think you did the math wrong.  7 years from the original 2012 date of deliquency would be a credit report fall off date of 2019.  Plus 180 days for collections means the account will come off the report in January 2020, not 2017.  Still better than the previous assumption of 7 years after initiating collections, though, which would have been 2023.

Reply by
mdd1986

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Helpful to 14 out of 18 people

I have contacted transunion i had a cc fall off 7years but its still in collections they said i had to wait 7 years its been 5 years since its been in collections i told them my original creditor is gone past the 7 years and 180 days said they can not remove it

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ACTUAL LAW!

Helpful to 10 out of 11 people

Here is a copy of the ACTUAL LAW.... Come on people! This is NOT an opinion. Its not open for discussion- it is an actual law that was passed!!!

IT IS THE FIRST DAY OF THE REPORTED DELINQUENCY, however there are a few exceptions, exemptions. 

Here is an insert of the law. With added definitions AND if you are repairing your credit alone, without help I've added a LINK to the FULL F.C.R.A. (Fair Credit Reporting Act) that was passed by the Government in 1970 by Richard Nixon but in 2009 was amended to include the CreditCard Act of 2009.  Click <a href="https://www.700dealer.com/fcra.pdf ">here</a> to go to the entire FCRA LAW.    

(BEGINNING OF LAW QUOTE) (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." (END OF LAW QUOTE)

com·mence·ment/ noun  1. a beginning or start.

pre·cede/ verb  1. come before (something) in time 

***The exceptions have to do with government debts such as student loans, etc. It is part 605 (Starts on bottom of page 13) in the full pdf of the law, which I linked above.

:) 

I hope this helps any confusion. I'm doing this myself; disabled, single mom and widow, while also attending med school and I get so frustrated at all the misinformation out there!  

BUT A HEADS UP! ... I got two loans (mine are student loans but a secured loan works) that just opened on my credit (meaning they reported I got it, but NO PAYMENTS ARE EVEN REPORTED YET) and two credit cards (both secured cards. one reports as unsecured. they both report monthly - OPEN SKY $300 and PRIMOR $200) Neither three show any payments yet. The loans are deferred and won't do much else. THE CARDS I DID KEEP at 15% utilization because it DOES SHOW THAT ALREADY.

MY SCORE WENT FROM 489/531 TO 538/569 JUST FROM THAT!!!

I had 13 deliquent accounts all are open but have been charged off. They total 16k. One I got deleted by challenging it.  They couldn't prove the debt. So that does work! 

I've been researching and reading alot. I read the entire law. Here's what I realised. It will take two years to be debt free and have the credit to buy a home. Thats my goal.  There are not first time hone buyer and bad credit options when purchasing outside the USA. And that is what I am doing, so my options are limited. They don't like bankrupcies AND you cant have any delinquent accounts.

Here's what I realized. If you want it done as fast as possible you have two attack at all four ends at once.  BECAUSE it is NOT just delinquent accounts that affect credit. INFACT amount of credit, usage, payments and debt are ALL ABOUT THE SAME. 

1. Start by paying of ALL THE SMALL ACCOUNTS YOU CAN.

2. At the same time challenge ALL THE BIG ONES. You will know within 45 days which ones your going to have to pay

3. WHILE DOING THESE THINGS order at least 2 credit cards. Secured if you have to. AND IF YOUR BROKE LIKE ME HERES THE DEAL. I needed that money. Remember the first bill goes out quick. So a week after getting them, the first bill out, you can use more than 30% (i did) but I also paid it down before the next billing cycle when I did have the money and I NEVER DID IT AGAIN. My usage is at 18% and its done my credit GREAT!

IT IS 15% OF YOUR SCORE!

4. WHILE DOING THIS GO TO YOUR BANK OR A CREDIT UNION AND GET A SECURED LOAN (1000 for 15 months. the payments are 50 bucks) Its worth it! Diversity in your credit is roughly 7-9% of your score.  If your having a hard time getting a secured loan (to build diversity. like if you don't have a home loan or car loan) then get an account at centris bank.  I dont have a lot of spending money so i deposit my cash but just withdrawl it right away. This at least SHOWS them my money, because after 30 days of having an account there, with no negatives and with showing an income, you auto qualify for a $500 loan.  And its unsecured, so you actually get the $500!  This will work the same way on your credit. DOWNSIDE? They only report to one agency. So in 45 days when it shows up, you send out two faxes and get it reported across the board :) Its a pain, but hey, its your future!

5. MAKE PAYMENTS ON TIME AND PAY IT ALL OFF! Dont let interest rise on your credit cards. Ever! While Im rebuilding credit, I don't even act like my cards are an option for spending. I just purchase my phone bill and then mail off the money for the bill to the credit card company - the same **** day!

6. Wait... Once the results come in for the "big" debt items then you'll know more.

Make a payment plan for the ones you do have, if you can't pay the entire thing off up front. If you can do that, you have more negotiating power. Remember, DEBT COLLECTORS PROFIT OFF JUST 25 CENTS ON THE DOLLAR.. Thats 25/100 or 25% of the debt. SO ... That's where you start negotiating. If the debt is $1000, trust me when I tell you, you can settle it at $250.  When negotiating you try to get 1 of 2 options: First you go for the PAY TO DELETE. This is hard, bit hammer at it. If not, ask for them to JUST MARK IT AT PAID. NOT SETTLED. Or Closed - Debt Settlement Reach $250 of $1000. or whatever.  JUST PAID.  They may say "We have to report honestly" and you respond, "Yes thats why Im asking you to just say Paid, instead of Paid in Full" :) and you got em! :)

I hope this helps :) and please read the entire law I've attached if your doing this on your own. A summary of the law and your rights can be found here (if you won't read the entire thing like you should)  https://www.consumer.ftc.gov/articles/pdf-0096-fair-credit-reporting-act.pdf

Top Contributor
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308 People Helped

Helpful to 103 out of 144 people

I recommend you take a hard look at when the accounts are scheduled to come off the report. If you go to your free annual report - annualcreditreport.com each account should have some wording that says "scheduled to report until, xx/2013. You would need to do this for all 3 CBs. Credit Karma is not the originator of this information - It is Transunion, so you may wantr to start with this CB.

Are you also converned about when creditirs can / can no longer collect from you legally? If so, read on:

If the account(s) is scheduled to come off in 1 or 2 years (or what you think would be the magic #), then i would not contact them and set up a payment plan or even pay it off. Reason: This is considered an event that could start the reporting clock all over again. So instead of the account coming off in 1 or 2 years, you've just re-set it to 7 years (time bad stuff gets reported to CBs).

Also, there is a statute of limitations that a debt collector can sue you for the debt. Some states are 3, 6, 7 years. That doesn't mean they can't try, just that they legally cannot sue you. Check it our by state:

http://www.nolo.com/legal-encyclopedia/statute-of-limitations-state-laws-chart-29941.html

Good luck.

Top Contributor

Reply by
mbacan

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Helpful to 53 out of 75 people

The drop off date is 7 years from your last activity date (activity date could be last payment, last agreement (yes this resets to 7 years if you made an agreement w/ the creditor), 1 or 2 months after the default date.

I recommend you take a hard look at when the accounts are scheduled to come off the report. If you go to your free annual report - annualcreditreport.com each account should have some wording that says "scheduled to report until, xx/2013. You would need to do this for all 3 CBs. Credit Karma is not the originator of this information - It is Transunion, so you may wantr to start with this CB.

Are you also concerned about when creditors can / can no longer collect from you legally? If so, read on:

If the account(s) is scheduled to come off in 1 or 2 years (or what you think would be the magic #), then i would not contact them and set up a payment plan or even pay it off. Reason: This is considered an event that could start the reporting clock all over again. So instead of the account coming off in 1 or 2 years, you've just re-set it to 7 years (time bad stuff gets reported to CBs).

Also, there is a statute of limitations that a debt collector can sue you for the debt. Some states are 3, 6, 7 years. That doesn't mean they can't try, just that they legally cannot sue you. Check it our by state:

http://www.nolo.com/legal-encyclopedia/statute-of-limitations-state-laws-chart-29941.html

Good luck.

2 Contributions
4 People Helped

help

Helpful to 4 out of 5 people

My husband has collection from 2007 on his report..how do we get them off? Can they still be reporting on a depth that old? And what exactly does a closed account mean? Are they still reporting on closed accounts and would it do any good to set up payment plans on closed accounts?

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Helpful to 56 out of 76 people

Collection accounts are removed your credit report 71/2 years (at the most) from the first DELINQUENCY DATE NOT THE THE LAST ACTIVITY DATE as previously posted. If you happen to make payments or an arrangement to make payments IT DOES NOT  START THE REPORTING CLOCK ALL OVER AGAIN..Once a delinquent account(not a lien or a bankruptcy)  is reported to a credit agency it stays on the report for 7yrs. NOT 1 or 2 years See URL pasted below.

http://www.nolo.com/legal-encyclopedia/how-long-does-negative-information-stay-credit-report.html

Reply by
SigGirl

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Helpful to 19 out of 30 people

You are correct! this is a myth by law an account cannot stay on your report longer than 7 years UNLESS you pay it off in full or make an agreement to pay less and satify the debt to the creditors satisfaction. The process does not restart simply by contacting the person you owe money,

Reply by
lowlowfico

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Helpful to 18 out of 32 people

What if there is a judgment against me for the account?  Is it still 7 1/2 years from the first delinquency or does the judgment extend that time period?

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Question wasnt answered

Helpful to 9 out of 11 people

Im here for the same reason as the original unanswered queation. One day credit karma showed me that a few collects were about to fall off my report. Since then I have been unable to find any credit karma tab or page that shows when things will fall off or even if there are things that will fall off soon. Was it a one time helpful message at the time of it happening? Was it a previously but no longer offered service? Or is there a place on credit karma with this information still?

Reply by
crimsonknight89

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9 People Helped
Helpful to 4 out of 7 people

Just watch the reported dates from your closed accounts. If it "fell off" then it won't appear anywhere in CreditKarma, because it's GONE :)

It's the same with old inquiries, once they "fall off", they aren't stored anywhere to review they are just completely gone. I hope that helps!

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Juanita

Helpful to 4 out of 6 people

If the opened date is not correct can i get it disputed?

3 Contributions
1 Person Helped
Helpful to 0 out of 1 people

Hello Juanitajohns:

You can dispute any information that is untrue, incorrect or derogatory.  You can dispute online to any major credit bureau.  In most cases, if questioned you would need to prove that your information is valid and correct.

Good Luck!

Reply by
crimsonknight89

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9 People Helped
Helpful to 4 out of 5 people

Try calling a consumer law attorney to help with the dispute. Good ones will review your report with you for free and do an initial letter for little or no cost (usually no cost) because once the creditor's fail to remove the information (which happens) or they continue to report things incorrectly it give's them a FANTASTIC federal suit against the debt collector.

2 Contributions
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Question wasnt answered

Helpful to 4 out of 6 people

Im here for the same reason as the original unanswered queation. One day credit karma showed me that a few collects were about to fall off my report. Since then I have been unable to find any credit karma tab or page that shows when things will fall off or even if there are things that will fall off soon. Was it a one time helpful message at the time of it happening? Was it a previously but no longer offered service? Or is there a place on credit karma with this information still?

1 Contribution
2 People Helped

original date of default

Helpful to 2 out of 3 people

I have a question about the original date of a default on a credit card. My debt was bought by a debt company and I don't believe their original date is correct.

How do I find out the original date of default from the original bank who issued the card?

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understanding my report

Helpful to 2 out of 3 people

What does write off, profit loss, bad debt cancelled by grantor mean?

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Helpful to 1 out of 1 people

Hello Evnile:

A write off in the financial world means a cancellation of an account of a bad debt or worthless asset that is considered non-collectible by the creditor.

The term and Profit & Loss which means the profit and loss statement, or the shorter version is also known as P&L, is a name that is often used for what today is the income statement, statement of income, statement of operations, or statement of earnings.  This term is normally used for businesses and corporations. In other words, the profit and loss statement reports a company's revenues, expenses, and most of the gains and losses which occurred during the period of time specified in its heading which would include the name of the business and the dates in which the P&L is covering.

The proper term would be "charge off bad debt/canceled by grantor which means the original creditor/credit card company has given up and believe that it will not be bad according to the original terms of your respective agreement. Now keep in mind, that just because the creditor "charged off" the debt doesn't mean that you are off the hook.  In most cases, the debt doesn't go away it is normally sold to another company for a reduced amount.  That new company can now come after you for the debt according to the terms of your agreement.  The mistake that most consumers make is not reading the fine print of the agreement when receiving credit/loan.  If the debt is turned over to a collection agency of the original creditor for collection, you will still be obligated on the debt for the statute of limitations.

Let me point this important awareness out to you and those that will read this post.  If a consumer negotiates a settlement on the debt remember the remaining amount that is saved could be considered income and a 1099-C will be issued and most be filed on your tax returns.  Here is an example:

Debt amount due $5,000 you negotiable to settle the debt for $1,500.  The balance of $3,500 that you saved would now become income and is taxable.  As an accountant, depending upon your tax bracket, you could be paying $1,050.00 which would now reduce that amount of saving to $2,450.  It's still not bad and overall a savings was made.  However, many consumers get surprised when receiving the 1099-C form and most of the time they are not informed. 

This information is being provided for informational purposes only.  All information is based upon a case by case basis.

Good Luck!

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