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StephanCVL

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Government Charge Off Issues
Alright, I'm currently dealing with an issue.

Back in 2011 I was overpaid by the goverment for the amount of 9800 dollars. When I got a letter from them asking for payment, I couldn't afford to pay the whole amount back in full so I opted to do a repayment plan. However, they were wanting the full amount paid within a year and I couldn't afford to pay almost ten grand in under 12 months. So, since 2011, they've taken every tax return since then. Fast forward to 2016, I currently only owe around two grand and I could pay off the remaining portion of what I owe but I don't want to after hearing all these horror stories. Either way, they will be getting their money.

So, since 2011 they have hit me with 8 late payments. November of 2011 was the 120 charge off. They did it again in May of 2012 for three 90 days, again in 2013 in April for two 90 days, and again in 2014 for two 90 days. Since September of 2014, it has been labeled as a collection / charge off. However, they have made no attempts to collect and it has not been sent to any collection agencies since it first happened.

The question I have is this, if I pay it off full in the next month will the debt fall off my credit report eight years from 2011. Or will it fall off eight years from the final payment they recieve? Since this is not an actual collection agency (Defense Finance & AC), they keep closing and opening the debt which is constantly pinging my credit score. This is the only debt I have on my credit report and my score is still staying around a 640 Equifax, 676 Trans Union, and 651 Experian. Any advice, I'd be willing to take it.

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According to the Fair Credit Reporting Act (FCRA)- the legislation that governs credit file information- the date a negative account drops off your credit report is seven years from the date of your last activity on the account. 

If you make a payment in June 2016, the account should drop off of your credit report in in 2023.

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