0
What date determines how long charge off and collection accounts will stay on your CR?
The date that begins the reporting period for derogatory information is the "date of last activity". For accounts that originated after December 1997, that date is established by law as "...the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge off, or similar action". So the last time the account was late in being paid, plus 180 days (which is industry standard for how long a company deals with delinquent accounts before sending them to collection or charging them off) plus 7 years. FYI: This is not the date that determines how much of an impact derogatory information has on your credit score.
What else can I help you with?
What are the three kinds of charge accounts?
The three kinds of charge accounts are regular charge accounts, revolving charge accounts, and installment charge accounts. Regular charge accounts require the full balance to be paid off by a set date each month. Revolving charge accounts allow users to carry a balance and make minimum payments, while still being able to make new purchases. Installment charge accounts involve making fixed payments over a specified period for a set amount.
Will paying off a few newer accounts in collections help your credit score or will it hurt by staying on your credit report even longer?
Paying off collection or charge offs is NOT SUPPOSED TO reset the DLA (date of last activity). This is the date that determines how long a derogatory account can show on your credit report. You would need to find out the DLA on your specific accounts and follow up after payment to ensure that they are not re-aged. This would be illegal. Better yet, why not offer to pay for removal from your credit report completely?
If you are buying a home paying off collections will only hurt you instead of helping you?
The answer to this type of question depends on SO many factors. Paying off collection accounts will not necessarily raise your credit score, which is what most consumers believe. The variable is the date the accounts were last reported (or updated) on your credit report. The date last reported, or "status" date is the date that causes collections and charge offs to impact your credit score. Anything, including legal items, late payments and collections/charge offs, updated within the last 12 month time frame, falls into the "history" category. This category accounts for 35% of your credit score. So, if you have old collection accounts which have not been updated recently; paying them off will cause them to be a paid collection as of, well, NOW. If, on the other hand, your collection accounts ARE being updated to within the last 12 months (regardless of the last time you used the account), then paying them off will probably not cause deductions to your score and MAY raise it. Certainly, 12 months from now, any collection account that is paid is better than an unpaid collection. The best scenario is to offer creditors a pay-for-delete. THAT would benefit both you and those whom you owe.
How many times and how often can a collection agency post an account to your credit report as a charge off?
A collection agency cannot charge-off an already charged-off account. The reporting of the STATUS of the account AS a charge-off can be reported every time they update with the credit bureaus. The 'date of status' must be the date of the ORIGINAL charge-off.
What can you do if you are prepared to pay all your chargeoffs in full but the agencies aren't willing to delete the record from your credit report?
Most companies will not delete accounts that have been paid, nor do they have to under the law. The Fair Credit Reporting Act allows them to report the accounts as paid charge offs, or as charge off/collection with a zero balance and to report the date that the account was paid in full or settled.
Can collection agency collect or report if charge off accounts are deleted after 7 yrs?
Attempt to collect: yes they can attempt to collect long after the 7yr tradeline expiration date. Report: no since the very first account default triggers the 7yr deletion timer not when the collection agency receives it from the original creditor.
Do accounts receivable all have to have individual dates?
Invoices must have dates on them... a collection of invoices for goods & services sold on credit comprise accounts receivable. On the basis of date of each invoice, the ageing is determined.
Can a 501 FICO score be repaired when you have a car loan charge off and several medical accounts open in collection which are all 2 years old?
The starting point of your score has little to do with credit repair; nor does the age of accounts. The date on collections that has the most affect on your score is the date the collection was updated on the bureau. You would still benefit by going through the credit repair process, although depending on the specifics of your particular file, the results you get may not be optimal. Another aspect that is important would be for you to have ongoing positive credit to offset these derogatory items. A lot of consumers think, "I have some bad credit, so it doesn't matter...". They couldn't be more mistaken. Credit scores are calculations based on ALL the information in your credit report. So having positive information is very important to add into the mix along with your repo and collection accounts.
If a collection agency posted a check a day before the agreed date against one of your accounts what can you do about this?
Nothing unless it caused the account to be overdrawn and fees were charged. However that would be an issue for the bank which processed the check previous to posted date.
If a debt is sold to another company for collection does it take another 7 years from the transfer of debt for it to come off your credit report in California?
The date of first delinquency should be the date that starts the clock for the 7 years. Meaning if you went 30 days late in April 2005, on a credit card, and then 60, 90 then 120, then the account would go to charge off status but the date of first delinquency would be April 2005. In CA, 4 years from the date of first delinquency is within the statute of limitations is in effect that a creditor or collection agency can sue you for the amount owed. This will vary from state to state, If the collection agency sells the collection to another collection company, the start date is the date of first delinquency, April 2005. If the collection agency changes the date, that is called re-aging and is illegal unless you set up new terms with collection agency
What is the charge date for this transaction?
The charge date for this transaction is the date when the payment was made or the amount was deducted from the account.
If paid will old charge off accounts with small balances raise your credit score?
Probably not significantly if at all. Even if they are paid the entry will remain on your report for the maximum 7 years. There are some circumstances under which paying off an older charge off/collection will lower your score, not raise it. The determining factor is when the account was "last reported" (by the creditor) to the bureau. If updated within the past 12 months, the account is having a significant impact on your score and paying it off does no damage. If, however, the account has not been reported recently - paying it causes it to be updated to NOW, thus bringing the date within that critical 12-month time frame. This date (reporting date or "status" date) is the date that causes deductions to your score when coupled with derogatory data, like the charge off notation.
