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Is it 7 years after the open date of the account or 7 years after the date it goes to the collection agency that it is removed from your record?

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March 25, 2005 3:43PM

We are currently in the process of refinancing our house. The mortgage right now is with a private party at a high interest rate and high payment. After talking with a few mortgage brokers we have heard the same from all of them. That is that a derogatory entry on your credit report must be removed from your credit report 7 years from the date that it was first reported to the credit reporting agancy as derogatory. The only exception to this is the government. Such as task liens, child support and so forth. However with back child support it must be removed from the credit report 7 years from it's original report date once it has been paid off. Not 7 years from when you pay it off. If your question refers to the 7-year reporting time period, the answer is provided in the text of the Fair Credit Reporting Act. The FCRA 15 USC 1681c, Sec. 605(a) reads that "Information excluded from consumer reports...(4) Accounts placed for collection...which antedate the report by more than seven years." It goes on to elaborate that this time period begins (c)(1) "...upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity..." So, neither the opening date, the last reporting date, nor the date of transfer to collection is THE DATE. The date that begins the 7-year countdown is the last time you paid the account on time "immediately prior to the commencement (start) of the delinquency". This date is established as THE DATE which determines how long it can show on your credit report and how long you can be sued to recover the money. Data Furnishers have 90 days after they initially report this account is identify that date. Once established, nothing can legally change it. Doing so would be a violation of law.