Re: 7YR RULE JUST A MYTH NOT A FACT.

Posted by scott (65.25.99.145) on June 12, 2003 at 02:03:20:

In Reply to: Re: 7YR RULE JUST A MYTH NOT A FACT. posted by debt collector on June 12, 2003 at 01:33:28:

I will comment here so nobody listens to this misinformation.
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Here is a discussion forum for collections. Even they know it is 7 years:
http://www.collectionindustry.com/forum/messageview.cfm?catid=8&threadid=96

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http://www.ftc.gov/os/statutes/fcra.htm#605
FCRA THE FAIR CREDIT REPORTING ACT

§ 605. Requirements relating to information contained in consumer reports [15 U.S.C. § 1681c]

(a) Information excluded from consumer reports. Except as authorized under subsection (b) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information:

4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years
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http://www.ftc.gov/os/statutes/fcra/johnson.htm
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
WASHINGTON, D.C. 20580
Thus, Congress intended to establish a date certain -- the start of the delinquency -- to begin the obsolescence period (now seven years, plus 180 days).(2) The alternate view stated to you (that the date of reporting controls) is at variance with both the plain language of these amendments, and the intent of Congress in enacting them.

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http://www.ftc.gov/os/statutes/fcra/kosmerl.htm
Section 623(a)(5) requires a party that "furnishes information to a (CRA) regarding a delinquent account being placed for collection, charged to profit or loss, or subject to any similar action" to notify the agency (within 90 days of reporting the account) of "the month and year of the commencement of the delinquency that immediately preceded" the creditor's action. Section 605(a)(4) provides that the CRA may report the information for seven years, in most cases.(1) Section 605(c)(1) provides that the seven year period begins 180 days from the "commencement of the delinquency" date.
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http://www.ftc.gov/os/statutes/fcra/amason.htm
This responds to your letter concerning the time limitations imposed by the Fair Credit Reporting Act ("FCRA") on the reporting of chargeoff accounts by a consumer reporting agency ("CRA," usually a credit bureau). We list your inquiries on this topic below in italics, with our replies immediately following each item.

1. What reporting limits does the FCRA provide with respect to chargeoffs, and how long have they been in effect?

Section 605(a)(4), which has been in effect since the FCRA became effective in April 1971, has always prohibited CRAs from reporting chargeoffs that are more than seven years old.(1) Section 623(a)(5), which became law in September 1997, requires a creditor that reports a chargeoff to a CRA to notify the agency (within 90 days of reporting the account) of "the month and year of the commencement of the delinquency that immediately preceded" the chargeoff. Section 605(c)(1) provides that the seven year period begins 180 days from that date. Both provisions were part of the major revision to the FCRA that were enacted in 1996.(2)
2. Is the reporting period extended if (A) the original creditor sells or transfers the account to another creditor, (B) the consumer responds to post-chargeoff collection efforts by making a payment on the debt, or (C) the consumer disputes the account with a CRA? Does it matter whether the 7-year period has expired when any of these events occurs?

No. In enacting the new provisions discussed above, Congress intended to establish a date certain -- 180 days after the start of the delinquency that led to the chargeoff -- to begin the obsolescence period. It did so to correct the often lengthy extension of the period that resulted from later events under the original FCRA. Enclosed are two staff opinion letters (Kosmerl, 06/04/99; Johnson, 08/31/98) that discuss the impact of these provisions, and the legislative history relating to their enactment, in more detail. Because the commencement of the seven year period is now described with some precision by the statute, it is our opinion that none of the subsequent events you listed -- sale of the charged off account by the creditor, or a payment on or dispute about the account by the consumer -- changes the allowable period for a CRA to report a chargeoff.
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transunion's site
http://www.transunion.com/content/page.jsp?id=/personalsolutions/general/data/ManagingCreditFAQ.xml#3

How long do accounts remain on my credit report?
In most cases, accounts that contain adverse information may remain on your credit report for up to seven years from the date of first delinquency on the account. If accounts do not contain adverse information, TransUnion normally reports the information for ten years from the last activity on the account. Adverse information is defined as anything that a potential creditor may consider to be negative when making a credit-granting decision.

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I could go on and on. I have PACER and let me tell you companies like asset acceptance get creamed all the time for reaging accounts past the 7 year reporting limit.

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