Re: Charge-offs six years later

Posted by Why Chat (209.240.198.61) on April 10, 2003 at 20:05:50:

In Reply to: Charge-offs six years later posted by Peter on April 10, 2003 at 19:02:00:

If the chargeoffs occurred over 6 years ago, you can very likely get them deleted by disputing them to the credit bureaus as "obsolete". The law changed in 1997 to 7 years from 1st delinquency. This really wasn't effective until after 1998,but the CRA's are deleting older accounts anyway to avoid the hassle.

You should also "opt out"on all 3 CRA's. this will keep the bottom feeder CA's from "poisoning" your report when you start applying for a mortgage.

The limits of going back farther than 7 years are:

Exempted cases. The provisions of subsection (a) of this section are not applicable in the case of any consumer credit report to be used in connection with
(1) a credit transaction involving, or which may reasonably be expected to involve, a principal amount of $150,000 or more;
 
(2) the underwriting of life insurance involving, or which may reasonably be expected to involve, a face amount of $150,000 or more; or
 
(3) the employment of any individual at an annual salary which equals, or which may reasonably be expected to equal $75,000, or more.
(c) Running of reporting period.
(1) In general. The 7-year period referred to in paragraphs (4) and (6) ** 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

In today's computer driven world, it is VERY doubtful that any lender (even above $150,000) would pay to obtain the deleted additional data from the CRA archives.

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