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When Will Charge Off Fall Off?
I had a Capital One Acct that was charged off in 09/07. The acct was originally opened in 07/06 & last reported in 07/08. Will it fall 7 years from date opened or date of last activity (09/07)?

Also - the collection agency is reporting this same debt (I settled in 10/07). The collections acct shows opened in 05/08, last reported in 05/09 & last activity 10/07).

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heres a better understanding to your question...

Credit card companies are selling their old, "charged-off" accounts to collection agencies for pennies on the dollar. The collection agencies then resume collection efforts, figuring that some consumers will pay up and that they, the agencies, will make a profit. All of this is perfectly legal. 

Just so you know: A charged-off account is an outstanding balance that the lender considers a business loss. How long it takes before the lender declares the account a loss varies from creditor to creditor, but this typically happens after several months of attempting to collect the money. Once an account has been charged off, the lender may sell it to a collection agency-and this can happen right away or much later on. At the time the account is charged off, the creditor usually stops the clock on interest charges, but the collection agency may add fees of its own. On your credit report, this kind of debt is designated as R9 for "revolving credit charge-off" or I9 for "installment credit charge-off." 

Here are your rights:

  • To clear your credit report:

    If any of your accounts were charged off more than seven years ago, the damaging information on that account should have been erased from your credit bureau file, and a collection agency cannot reenter the information. This process take place under a federal law, called the Fair Credit Reporting Act (FCRA), that regulates the actions of all creditors and credit reporting agencies. The law is designed to protect consumers, creditors, and credit reporting agencies. The FCRA enforces the seven-year limit; specifically, it says that information in a consumer's file concerning accounts that have been charged off or placed for collection must be completely erased after seven years from the date of last activity; last activity generally means the date the creditor charged off the account. On the copy of your report look at the date of last activity. Has it been seven years from that date? If so, write to the credit bureau and tell it to remove the account from your file. Each one of your accounts is probably different. For many of them, that seven-year limit may not be far away. Making a new payment now would merely create new activity in your account and start the seven-year cycle over. Be very careful about doing this.

now if your cap one was not sold off to another collection agency it still may fall off your report from the original creditor but it doesn't necessarily mean your score will raise, it just means 1 less debt to owe. 

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This answer is wrong for so many reasons.

1. Making a payment does not start the 7 year cycle all over again. It refreshes the statute of limitations in that state, which ranges between 7-9 years depending on the state. This means, it refreshes their right to take you to court for the period of time. You have 7 years from the first day after the charge-off to have it on your credit score. Period.

2. Making a payment absolutely helps your score in the long run. Many times, a human eye will make a lending decision, and I can assure you that a paid Charge-off is better than an unpaid one. However this will take a temporary hit on the credit score, because the account is considered as recent activity. It pays off in the long run.

3. You always owe that debt. Always. Even after the SOL is up, they may not be able to take you to court, but they have every lawful right to collect until that debt is paid off. 

4. If the chargeoff is off your credit report, your credit score will absolutely be raised. How much depends on how old the account was (take into consideration average account age, recent activity, etc.).

Please don't try to help people without doing some research first.

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No One Size Fits All

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What's important is to identify your purpose for building your credit.  Good credit only serves its' purpose when you need it.  For good insurance rates, cell phone contracts, even credit card applications it isn't particularly necessary.  If you are going to attempt something larger, the financing of a mortgage, small business loan, even exotic car financing, you will be scrutinized by some of the most detailed underwriters.  Your best bet, settle your debt.  It will only open more doors and give you better opportunities for obtaining leveraging in your future.

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Save ya bread

Helpful to 3 out of 7 people

Yo Vincent's-WRONG. It does zero to pay any owed credit. Only time will heal your score. Paying off a CO is just a waste of money-your score won't change one bit.

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