Do collection accounts age off your credit report after 7 years?
So I have debt from store lines of credit to a bank credit card. I haven't paid on them since at LATEST December 2007. Chase, citi financial (store line of credit) and Sears line of credit all have it showing closed but I am getting reporting from some debt collector companies.
I live in Arizona and just ordered my actual credit report today. I viewed the information online through a credit score tracking website. I read a lot of comments and researched online somethings. My questions are can any of them take me to court still because from what I read some debts are 3 years and some are 6 here in Arizona, I am not sure what they fall under, also at 7 years they have to stop reporting to my credit so I am told. Does this mean that it will show the old reports but they cant continue to report and since the original lenders have the accounts closed can the debt collector who purchased the debt also show up as a closed account or do they just disappear forever?
Any information to better understand when or if this will ever not be an issue for me would be helpful, as these debts were ran up by my ex and are thousands of dollars I cant and haven't been able to afford to even attempt to fix.
Do collection accounts get removed from my credit reports after 7 years?
—Jennifer
Short answer
Yes, but the clock is not the one most people count from. Negative items stay on your credit report for up to 7 years measured from the first missed payment to the original lender, and every entry tied to that same debt should age off on that same date.
Key points on this page
- Original lenders and creditors show payment default for up to 7 years from when you stopped paying.
- The 7 years starts at the first missed payment to your lender, not at the date a collection agency or debt buyer picked up the account.
- All negative trade lines related to the same collection account should age off at that same 7 year mark.
- Only one entry for a bill should show an unpaid balance. If a debt buyer reports a balance owed, check that the original lender no longer shows one.
- A collection account reporting a newer date of last activity prolongs the credit damage, so compare that date against the original lender’s.
- If the debt is still inside the statute of limitations to sue, a dispute can wake a collector who was not bothering you. Weigh that before sending one.
Original lenders and creditors show payment default on your credit reports for up to 7 years from when you stopped paying on the account.
When you first miss payments to a creditor or lender, you will see late pays show up in 30 day blocks of time on your credit report. If the accounts remain unpaid long enough, those 30 day incremental late pays turn into a charge off reporting on your credit. With credit cards, charge offs normally occur within 180 days of consecutively missed payments (they can happen sooner than 180 days).
The 7 years the negative item stays on your credit report starts from the first missed payment to your lender.
When your accounts get this far behind, it is standard to have the account placed with outside collection agencies, and often repeatedly. Many creditors have a practice of selling off debts that remain unpaid long enough to debt buyers. They are legally transferring the rights to the debt to someone else, as is often laid out in your original contract with them.
Collection Agencies and Debt Buyers Showing Up on Your Credit Report
When an additional entry from a collection agency shows up on your credit report it is important to look for some key items:
- Is the new entry showing a balance due? A debt buyer who reports a collection account to the credit bureaus with a balance owed should be matched with the original lenders negative credit reporting to be certain that the original lender no longer shows a balance is owed to them. You should not have more than one credit entry showing an unpaid and due amount on your report for the same bill.
- Does the collection account show a date of last activity on your report that is different than the date your original lender is showing? Collection accounts that are reporting separate from, but related to an existing negative item on your report, should not show a newer date. If a newer date is used by a collection agency reporting, it prolongs the credit damage and will take longer for you to improve your credit.
All negative trade lines related to the same collection account should age off of your credit report at the same 7 year mark you use to calculate your first missed payment to your original lender. The exception used to be when people got sued for collection and ended up with a judgment over one or more of the debts – which would show in the public records section of your credit report for 7 years from the date judgment was entered in the court.
Most judgments obtained in state courts were taken off our credit reports with Equifax, Experian, and TransUnion as of July 2017
What to Do If You Need to Dispute a Collection Account on Your Report
I will have an upcoming article about disputing incorrect information on your credit report, but for now, it is important to consider the following:
If your debt is within the SOL (statute of limitations), to legitimately sue you for collection, you should carefully consider whether or not to send a dispute about a collection account on your credit report, even if it is showing incorrect information. When there is still room on the clock to sue you, sending a dispute may wake the collector to the fact that you are:
- Still an unpaid account.
- Care enough to start cleaning up your credit report (usually for some credit goals, which means you are more collectible).
If your debts are beyond the SOL to sue you legitimately, you should have less concern about waking a sleepy debt collector who may not have been bothering you, with disputes about getting your credit reports corrected.
Legislation was passed in 2011 that changed the SOL from 3 to 6 years in Arizona. Given the information you shared about 2007 being the earliest date of last payment, your debts may/may not be off of the current debt owner’s radar. You would need to be certain about the date each of account was last paid. Any of them you know were paid last in 2006 would be clear of the SOL.
Reviewing your credit reports for accuracy when you know you have old collection items is important. Staying on top of when and how to get your credit reports corrected will help you plan for future access to credit at fair prices.
If you have a particular issue or question you can post in the comments below for feedback.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
Yes my name rickey morrow i opening account in August 1 2oo7 have married problem an im trying to get my credit right it 2016 it still on my credit report what shall it do
When did you stop sending in your payments on this account?
Me and my wife had a hard hit in our income about 5+ years ago and have credit cards that have not been payed and put off to collection agency’s can they still come after the money and what’s the best way to start to repair our credit we live in fl
Who are the creditors?
When exactly did you stop making your minimum monthly credit card payments?
All credit cards. Welsfargo citi bank home depot walmart pottery barn all have been right at 5 Years not sure on the exact of hand
It is important to know precisely when you stopped paying. The SOL to sue in Florida on credit cards can be 5 years. If they cannot sue to collect, and you have another 2 to 2 and one half years before these accounts drop from your credit, you may want a compelling reason to go and settle them. You can drive good bargains when they can no longer file a legitimate lawsuit.
You can still be called by debt collectors and be send notices in the mail after the time to sue has passed. That can even continue after this all drops off your credit. But there is no real teeth behind the bark.
I would not take many steps to improve my credit other than a secured credit card, or perhaps a not so great auto loan (only if I need dependable transportation and cannot pay for a car up front, but have a reliable income). You will make rapid progress with improving your credit scores after these fall off.
Hi Michael;
I live in Georgia and have accounts on my credit report where the last payment was made in 8/2011, however Portfolio Recovery (PR) picked up the account in 12/2011 and is reporting the account as in collections monthly.
This is adversely affecting my credit. How can I get PR to stop reporting in collections and have these removed my credit report?
Thank you
B
If the debt is legitimate you are going to have a hard time getting PRA off of your credit reports. You could settle them for less and get that fact updated to your credit. The resolved collections will allow you to make strides with some financial goals, like getting a new mortgage.
Recieved certified letter from LVNV Funding garnishee my bank on old debt that’s no longer on my crdt report.
But they started with letters before it came off.
Should I contact an atty.
It is always a good idea to contact an attorney about legal issues. I would encourage you to talk to one with debt collection defense experience. What state do you live in? I can email you a list with the experience you need if you like?
Hi,
My husband & I have accumulated a lot of debt ranging from credit cards to bank loans. We had excellent credit score ten years back but then we had a very bad financial hit. But now my husband is back to making good money. My questions are:
1. Is settling the account better than paying in full for my credit history & credit score? We can afford to settle all accounts in one year but would only be able to pay all accounts in full with payment plans in six years
2. How is credit score calculated?
3. How many years does it take for my credit score to go up an how?
Thanks
Lisa
When did your regular monthly minimums payments to your original lenders stop?
Check out this article about how to repair your credit after a rough patch.
This Question is about confusing Credit Report Dates and Student Loans. I have FFEL Stafford Subsidized and Unsubsidized loans from 1995 and 1996. I have an additional FFEL Loans (same kind) from 2003 and 2004. I Consolidated these in 2005. Yes I am in Default but that’s a different topic. The originator of the first set of loans held them until 2005 (no payment history) when the Consolidation was done through a new holder.
My 2008 Credit Report is a nightmare of confusing “Account Opened ” dates such as “Opened July 1995 transferred to new holder June 2005, Status never late (no payments ever made). The 2005 appears to be the Consolidation date. BUT a more recent Credit Report has that NEW Holder as “Account Opened 2013 but placed with collections as 2012. I have been trying for years to Navigate the Permanent Disability Forgiveness mess. Coincidentally that 2013 date was the date of another attempt at the Disability Discharge Paperwork.
In 2015 I tried to get the Disability Discharge paperwork through again but missed a deadline. So last month I was alerted that A negative Report had hit my Credit Report. It appears that the Holder of the Consolidation Loans that had long since defaulted had reported to ONE Credit Bureau an “Account opened date of 2013 and shows its active and open but is listing an original holder on the loan as a Bank I never heard of.
Also, even though they went into default and were permanently assigned to the Government this occurred long enough ago that they had aged off ALL 3 Credit Reports in December 2015.
These are FFEL Consolidation loans through GLHEC so they are Federal not private. Am I mistaken that it appears these are being re-aged by GLHEC? And since the Consolidation Loans are through GLHEC why would they report them now under the First Loan Originator? Shouldn’t they be only listed as GLHEC since that is who I got the Consolidation loans from?
They are also not showing the loans as defaulted but as 30 and 60 days late. They started this set of reports 2 months ago. Needless to say I am confused.
Great Lakes should not be reappearing on your credit reports after this long.
I would recommend you talk things over with an experienced FCRA attorney in your state. Where do you live? I can email you contacts if you like?
I have about 20 grand in medical debt (11 accounts in all) from 2010. I am unable to pay that. I also have 2 judgments from 2010 which no longer shows on my Equifax but does on my Transunion. My question is should i apply for a secured credit card? Would that have the old debtors ;looking where i work to garnish wages? My SOL has expired for these debts but can they still come after my wages, bank account etc.?
Check out this video about what your exposed to with judgment debt collection. In the vast majority of situations, it does not matter that a judgment is no longer showing on your credit reports. They can still be collected on in the way that you are concerned about.
And going out to try and establish credit is going to alert those judgment debt collectors that you are a better target. Check out this video about how debt collectors know finances have improved.
I had an injury that put me in the hospital and caused my credit cards to go to collections. I settled on almost all of the debts but two. One, a credit card from my current bank, sent me to collections but I haven’t heard from them or the collections agencies in over a year. I am about a year or two away from the statute of limitations to be sued for the debt balance but I am financially prepared to settle the debt and discharge it. However, I am not sure how to do this since I haven’t heard from the bank or any collection agency in over a year. My question is, what is the best course of action in this case? I am trying to eventually rehabilitate my credit score and while I know that settling for less than the amount owed isn’t an immediate fix, it is still better than nothing? Am I correct? Or what are your suggestions based on your expertise? I understand I still need to do my research and due diligence. Thank you!
Having a resolved collection account on your credit is far better than an unpaid one. Who is the bank? What is the balance owed today?
Its Chase Bank. It was 4-5 K when it went to collections and then I stopped hearing about it before I could resolve it.
Here are some resources to review about settling with Chase, and negotiating with a third party collection agency.
Husband has a debt last paid on 10/2010 car loan (reposessed). while checking our reports on credit karma they are reporting a new payment 09/2016! This reopens the statute of limitations and time line to fall of his report does it not? This no payment was made by us. I am fearful to contact them because I dont want to reactiate the debt ourselves. What can we do?
Who is it that is reporting the repo and updating it the other day? What state are you in?
No, a recent payment on this debt collection account would not allow it to show on his credit reports any longer.
We are in Fl. The original credit union is reporting the recent payment..which was never made by us or agreed upon. Transunion is reporting the payment under the credit unions details.
If they have never sued for the debt, and it has not been paid since 2010, than the time for them to sue has passed. I mention this to point out that disputing something on your credit reports can cause collectors to take notice and evaluate collection actions. There is not much for them to evaluate if they cannot sue, and you are not willing or able to pay.
I would send the dispute about recent payment activity because I am like that. But many of us would look at it like it is going to come off next year, and not bother with it unless we had some credit goal to accomplish.
Hi! I have a couple of unpaid medical collections that originally hit my credit 10/2013 and dropped my credit score significantly. I tried offering the collections agency payment for deletion but they declined. So I just worked on raising my credit score again. Now last month, I checked my credit and the same collection company “refreshed” the last update date for both accounts and again, my credit score dropped significantly. The collection company didn’t sell my debt to someone else, it’s still with them. Is this legal? Can I be penalized for the same debt twice? I haven’t had contact with them since 2013.
Are you saying they are reporting two separate collection entries, or are reporting the unpaid bills as brand new collection items?
No, it’s not showing up as a duplicate. I’m looking at the transunion report and the “placed for collections date” remains the same 10/3/2013, but the “Date Updated” is now reflecting as 10/18/16. I’m assuming the date updated refreshed the debt, causing my credit score to drop again ? It dropped by like 40 points. Those are the only two negative items on my report.
I’m sorry, yes the debt is owed to the same doctor for two services performed the same day. The collection agency is reporting it as two different collection entries. One for $175 and the other for $225. Both were originally placed for collections 10/3/2013 and both have a “date updated ” of 10/18/16.
That is pretty normal.
Paid or resolved medical collections no longer impair your credit like they used to. Why not just resolve them?
My son walked away from an apartment when he was 18, it was necessary at the time, that was in 2009. About three years ago he went to get a loan to buy a small home and found he has over $2500 in collections on a join debt. It says the opened date was May 19, 2010, he has never been contacted or knew he had this debt until then. We contacted an attorney who said he would be better off to let it drop off versus paying it because it would actually open it back up and be on his report another 7 years. We will be at 7 years this coming May, should be expect for it to drop off 6 months after that or could they sell it to another collection agency? We live in Kansas. Thanks.
You need a new attorney. Calling or paying a debt collector does not give it new credit reporting life. It still falls off after 7 years.
If the lender says he cannot get the loan through without resolving the old collection account, but your son really wants this house, you may want to settle it. If he can pass and wait a few more months for this to fall off, and then resume his home ownership goal, than it is hurry up and wait.
It will not matter if the collection account changes hands. It should not stay on his credit any longer if that occurs.
Thank you. The attorney doesn’t specialize in collections but did give us advice to just let it sit if we were able to. If we are only a year or less away from it dropping off I am going to let him just sit and let it drop off, if it was just his responsibility he would pay the balance but two other people are involved and won’t care or pay their share. Thanks!
Hello,
My boyfriend got divorced over the last year, and his ex-wife ran up a lot of debt when they were together. Unfortunately, both the credit card and repossessed car are in his name. The credit card is about $6,000 and the car is about $12,000. He is under the impression that those debts will completely disappear in 7.5 years and isn’t planning to pay them. Is that actually true? I know that is the point where they would disappear off of his credit reports, but would he still owe the money at that time? I don’t have any debt and have always been very responsible with money, so I don’t know anything about this subject. Any advice you have would be great.
Thanks,
Janet
What state are you in?
Those debts will drop from his credit reports after 7 and one half years. But there is another time line to be concerned about, and that is the state statute of limitations to sue in order to collect.
If your state SOL to sue is passed, and the items have fallen off his credit, there is really not much to do. The debt does not disappear. They can still write and call, but cannot hold up your life in anyway.
I have two negatives on my credit report. One is from a landlord. I gave them more than 30 days notice when I moved out and expected my deposit to be returned. They gave me every indication, in writing, that if I returned the rental in great condition, nothing would be deducted from my deposit, so I rented a carpet cleaner and I left that place in better condition than when I moved in. Instead of returning my deposit, they claimed I owed them another month’s rent. I was so angry that I did not call them because I was afraid I was going to lose it. Also, I was actively searching for a new job and chose to spend my time job hunting rather than fighting with them. Well, they sent it to collections, and now that I want to rent a place again, I am afraid it is going to hurt my chances. The amount I supposedly owe is $262. It is not fair for me to have to pay, but if I can improve my credit report by paying it, I just might do that. I also have another negative for $200 I did not pay to a hospital. I paid my deductible, and the insurance paid the rest, but then later I got a bill for another $200 from the hospital. It was, as it turns out, a very minor spider bite. I was afraid it was a poisonous spider. What should I do? Should I try to fight these amounts, or just pay them?
I am built to fight in these situations. And I mean dig in. But that is a process of many months sometimes. And the end result still may be a collection sticks.
Paid medical does not hurt your credit much anymore. But you will likely have a hard time with that unpaid debt related to a prior apartment, if you are trying to get approved for another. How soon are you looking to rent?
Wanted to show you an example of what this collection agency was apparently doing to my credit report. These accounts are private student loans that I co-signed with my daughter that at the time I signed would have been able to help her pay, but before I could make the first payment, I was laid off from a very good job leaving me without the ability to help her, therefore the collectors came after us. Here is how it is shown on the Transunion credit report. The way I read it is that this started in 2007 and if 7.5 years is the “golden” ticket, this should be gone, but it is not. They should not be adding more money to this should they? and if it is closed, and the 7 years has passed, can it be removed altogether from my report? There are 3 student loans and they all are closed and the other 2 original dates are Sept 22, 2008 and Jan 4, 2008, and there information read the same.
Account Details
Last Reported Oct 07, 2016
Creditor Name NAVIENT
Account Type Student
Account Status Closed – Derogatory
Opened Date Mar 26, 2007
Closed Date Jan 31, 2015
Limit —
Term 240 Months
Monthly Payment $574
Responsibility Joint
Balance $74,917
Highest Balance $31,950
Payment Status Collection/Charge-Off
Worst Payment Status Unknown
Date of Last Payment —
Amount Past Due $16,650
Times 30/60/90 Days Late 0/0/0
Remarks Charged off as bad debt
Profit and loss write-off
Payment History
Latest Status: Collection/Charge-Off
No payment history has been reported by this creditor.
NAVIENT
Balance Increased by $106
Between September 8, 2016 and October 7, 2016, your NAVIENT student loan account balance increased by $106 from $19,198 to $19,304.
Why This Matters
It looks like your student loan balance went up. This could be due to a missed payment, which can have a negative effect on your score. Your total debt also typically factors into your credit score, so it’s best to keep it low if you can.
Are these Collector Agencies allowed to do this? and how to I get all this negative information removed from my report?
When were the loan payments set to begin? If she was still in school the loan payments are not required. The solution is clearer if these are passed the 7 year reporting time.
If the contract allowed for collection costs to be assessed, this can change the balance owed, and thereby cause an update to the credit reports.
A bit of a follow up on how the process works. For the 7.5 year drop off of information, does it automatically drop off the reports due to the 7.5 years being up, does the creditor quit reporting it resulting in it not showing up any more, or does the creditor have to instruct the credit unions to quit reporting. The same question about a tax lien that has been paid. Does it automatically just drop off after the 7.5 years or does something have to cause it to go away?
The aged information can be set to drop off on the credit bureau side. And there are specific tools, like Metro 2, that provide a method for furnishers to stop reporting the information to the bureaus. None of that is a sure thing to work properly. You cannot rely on the credit reporting systems. Check your reports when you know things should have dropped off and verify that they have.
Is the tax lien state or federal? Tax liens can stay on for 7 years after you paid it. That said, there are some indications that state tax lies will no longer appear on credit reports by next summer, whether paid or not.
I had unpaid student loans. This year they garnished wages and are now paid off. For each account, there are 3 different reportings. One states Student loan assigned to government last reported 2012. One states Closed – Transfer/Sold, last reported 2014, and the third states Paid or being paid by garnishment
Collection account
Variable/adjustable Rate, last reported this month. Question is, when will they be removed from my reports?
Unpaid and paid collections age off of your credit reports in a similar time frame, which is 7 to 7 and one half years, unless you are in New York where paid collections age off in 5 years.
After reading information on line still confused as to what to do about a collection that is from 2010. It is reported by an apartment complex and I am waiting for it to fall off my report. As the year is coming to an end I have been reading much about this issue and found out the Federal Law is 7.5 years before it will fall off. Also, it was re-reported as of 9/2016. I was told that this does not matter and to leave it alone. I can not rent an apartment or live anywhere until this is removed. I live in Florida. Thank you.
If it is going to fall off soon, and it appears likely given the original collection date of 2010, than waiting it out is often the better path to take.
If it does not come off as scheduled, post an update and lets go from there.
Hi Michael. I have 2 derogatory medical collections on my credit report from 2011. I’m trying to get my credit score up because my interest rates are always high. Will this drop off sometime in 2017? Is there a way I could get this removed of my credit report sooner or should it run it’s course?
Thank you.
My mistake, it’s from 2010. Thank you!
Than yes, next year would be about right.
If the medical debt is from 2011 than they are likely to stay on your reports until 2018. You can also look to pay or settle them. Paid medical debts do not impact your credit reports like they used to.
We are currently working to do a reverse mortgage on our house. Our loan was approved but the loan processor sent us a letter, that before moving on, I need to explain what occurred to result in a derogatory credit showing on my Transunion report from Midland Funding. I searched my credit history report from all three credit reporting agencies and could not find it. I even called Transunion and they could not find it also. On calling back the loan processor, she sent me a copy from her report that shows a collection from FIA card services that was, I believe a credit card that was charged off from Bank of America 10 YEARS AGO, when we were having financial problems. It says Collection REV acct. sent to collection. They list 6/16 under payment history activity, and under Delinquency MOP Date 06-16. Currently my credit score is 780. What should I do to find out what’s going on and resolve this. Isn’t this way past the SOL for California.
Thank you for your time.
It is way over the SOL to sue in California, and long passed the time allowed to show on your credit reports. Why the lender is focused on it is not clear. You may want to ask them, or ask to talk to a supervisor. If they cannot offer a satisfactory reason, or any reason that makes sense, you may want to look for another lender.
Thank you for your response. The lending company is telling me that this derogatory collection from Midland is on my current credit report from TransUnion. I called TransUnion and they have no record of it. The lender even sent me a copy of the statement that shows it on there. But my current print out from TransUnion does not. Since were going for a Reverse Mortgage I don’t believe I have a say in who the lender is. My credit score jumped 100 points up in June. Could this have fallen off my credit report. I asked them to run it again but they want me to call Midland Funding to get an answer I don’t think I should contact Midland Funding because that could open up a can of worms.
I would pay for a full copy of my credit report myself, or get a free version of one of the three major bureaus from annualcreditreport.com. Look to see if Midland is on any of your credit reports… especially TransUnion. Let me know what you find. It sounds like Midland may have fallen off recently.
i got a copy of all three credit reports and no mention of Midland Funding. I think it must have fallen off the month after the loan company checked. I told them that and sent them my most current reports. Hopefully that should do it. thanks.
I have an acct from GE money that is delinquent since October 2010. It was sold to portfolio collections and portfolio just updated the date on my credit report to sept 16 2016. I have 3 questions. 1- should they both be showing on my credit report? 2- will it come off the report from original oct 2010 date for the 7.5 years limit? Or from the new date from portfolio? 3- how can portfolio add such a current date on my report?
Thank you for your assistance.
That current date from PRA is likely just the most recent update.
Yes, both Synchrony bank and Portfolio Recovery can show on your credit reports at the same time. But the Synchrony credit reporting should show a zero balance owed. Make sure of that.
Both will come off up to 7 and a half years from the 2010 date.
Portfolio Recovery cannot report in a manner so as to lengthen the time this stays on your credit reports. If that happens let me know.
Thank you very much. They both show a balance; I will have to look into that. So GE should show 0 and portfolio should have the balance and will come off report 7.5 years from October 2010?
Yes. You can file a dispute with the credit bureaus to get the Synchrony account updated to show a zero balance.
Portfolio is reporting longer than 7 years on one of my accounts! It first delenquent back in 2008 and its 2016! I am considering contacting the CFPB. I never paid a dime to Portfolio. What are your thoughts?
I would file a complaint against Portfolio Recovery Associates with the CFPB.