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.
Hi, I’m trying to clean up my credit report and I noticed a few things.
1) RGS Financial is reporting on my CR twice for the same debt, same account number but each debt shows a different amount. Is there any way to dispute this?
2) I received a letter from Convergent wanting to settle a debt that I was only an authorized user on. How should I go about this? They also sent settlement offers on debts that are due for age of my CR 5/14 and 6/14. Should I take the offer or let the accounts age?
Thanks!
Natasha – There is often little reason to settle or pay off older collection accounts when you can no longer be sued, and when they are already, or about to fall off of your credit report. Is there something particular you are doing with your credit in the next several months?
You can dispute the RGS Financial credit reporting entries, or at least one, as a duplicate. Send your dispute certified mail with a return receipt requested. Keep a copy of your letters and the green return card in a safe place. I would also send a credit reporting dispute direct to RGS. If your credit report is not corrected (a duplicate entry removed), post an update and lets go from there.
I have a lot of problems and it was 5 years this year about my credited pls any answer me and what I can do ??? My question is :
1. If I paid of my collection debt amounts it’s stay in my credit report or not?
2. My student loan office report to debt collection office and I have to deal with that thing so badly can any answer me what I should do about these thing and I want credit back..pls …pls……pls..
Steven – Paying off collection items will not generally result in those items being removed from your credit reports. Most negative credit report entries in most states will come off the report in 7 to 7.5 years from the date the negative item occurred (such as missed payments etc).
What will it taketo get your student loans out of default? Is it feasible for you to do that? You can often help your credit reports when it comes to different types of student loans.
Hi Michael can not get away from about my situation rightnow . and I would like to asking you this.?
I did let some one do my income tax for me alright. And I did by papers to IRS on 03.21.14. Until now I didn’t get my fund back and it was different from last year . so I did checking on IRS website to know my refund status finally my refund status results said..these..
Your refund has been applied to a past due obligation such as child support, another federal agency debt or state income tax. The financial management service who issues IRS refund will send you a notice informing you of the reduction that’s all .
Like I asked you about my student earlier that it was on default right now and I did spoke with the collection agency and I did make a payment for them to pull me out from default so I think only problem is student loan and why I can not got my refund please tell me Michael i ‘m so dump with these situation…thank you again
Sincerely
Steven
Steven – I cannot know whether what is happening with your tax return is related to your defaulted student loans, or not. Have you contacted the DOE about your situation. Have you written to the student loan ombudsman?
If the intercept of your tax refund is related to government backed student loans, it would mean that whatever arrangements or payments you made to a debt collector in the past, did not bring them out of default.
There is no such thing a making a payment to take a loan out of default. Some lenders do allow for a lump sum payment to be made by a certain date to be removed from the offset list.
Call 800-304-3107 IRS tax offset seizure line
I have been contacted via mail by a collection agency for a debt that I don’t believe is mine. I phoned them and asked them to send me the info to review the validity. They said the would contact the original lender and have them send it to me. The debt collector said it was a loan and gave me the name of the original creditor/bank. I have had credit cards before. However, as far as I can remember I have never taken a LOAN with this creditor/bank or any lender other than a loan to purchase my first car some 30+years ago and it was a different bank. The collector mentioned that the debt had been sold off three times, them being the third. The last payment made was in 2003. They didn’t have the date the loan started. And they acquired the debt in 2013. My questions are: Does each time a debt is sold off to another collector, does it renew the debt? Since it its been 10years, can they still pursue me for collections since they’ve had the account less than a year? And, if I am able to determine the debt is not mine, what are my options? I live in California so the SOL is 4 years if I’m doing my research correctly. The debt occurred in Texas, where I lived at the time of the loan commencing. Honestly, I don’t remember ever taking a loan out with the original creditor. My first thought was identity theft when I received their letter in the mail. However, when I spoke to collection agency on the phone….they had my right info at the time I lived in Texas. I’m perplexed.
Thank you
Lucky – Each time a debt is sold to a new debt collector, it does not renew the debt for credit reporting purposes. It would generally not reset the clock that is ticking for someone to be sued for collection in their respective state wither.
Debts can be pursued, and collection attempts made, anytime after it ages off of your credit report, or passes your state SOL. Debts do not become invalidated after a date passes on a calendar. Debt collectors are not limited in their collection efforts based on how long they have owned a debt, so this one only having the debt a year, means nothing by itself.
If you determine the debt is not yours you can tell the debt collector to cease communicating with you, but do it in writing and sent that demand certified mail return precept. If they continue to try to collect after that, your copy of what you sent, and that green return receipt card will come in handy. Even if you are given enough info to then recognize the debt is yours, you could still demand communications cease, but I caution against this unless you are 100% sure the SOL in your state has passed (in Texas it would have).
Check your credit report for any anomalies and things you do not recognize. Identity thieves can often procure accurate info about you when they go about screwing up your life, so I would not discount this.
hi, i want to buy a house in the coming months, i have paid in full all my debts except one, a resident collection from an apartments i defaulted on a lease and they are reporting negatively on my report from 2007 for $1500 . Should I pay this? wondering if the debt can be sold to another agency but its not really a debt i wasnt extended any credit i just broke a lease. anyway i broke my lease early due to personal problems. this is the only derogatory mark on my file. please give me some guidance
Joseph – Are you working with a broker, or loan officer yet? If you are, ask about how a single unresolved collection account this old is going to impact underwriting. It may have little to no impact. If you are not working with someone on your loan already, this may be a good time to start.
These types of debts can be sold to debt purchasers. But many apartment management companies are content to place negative items on your credit report and make only halfhearted efforts at collection. Settling with them should not prove too difficult (though account location might), if you learn it is important in order to get your home loan approved.
I checked my credit and see that a truck I bought in 2004 is still on my report. I paid it off in 2008. I was wondering how long it stays on there because even though I paid it off eventually, it shows up as repossessed or reclaimed and I’m sure this will hurt me when purchasing a home. If it stays on for 7.5 years, is that from the day that I bought it or the day that I paid it off? Thanks!
Blake – It sounds like the truck was repossessed, but that you reclaimed it and continued paying off the auto loan after that happened. Is that correct? When was the exact date of repossession? What is the date the repo is showing on your credit reports?
Michael, that is correct. I reclaimed the truck and ended up paying it off. It was repossessed late 2005/early 2006. I paid it off early 2008. There is no date of repo on the report, it only shows the dates that I opened the account (April 2005) and the date the account was closed (January 2008). So do I have to wait 7.5 years from the date that the account was opened or the date that was closed? If it is the original date, it should be off already. Thanks!
The negative aspect of the trade line is more than 7 years old, so if it were me, I would dispute that part of the credit reporting as too old. Who is the finance company doing the reporting?
I have two accounts charged off through Navy Fed Credit Union. One is 10k credit card and one is 8k loan. The 10k one shows no balance. Not zero, but nothing at all. Date of last activity is 5/09 and 9/09. My score is a 656 presently. I got behind as I was hospitalized for four months back then. Fast fwd… I would like to get a house. Any suggestions??
Brandon – Call Navy Federal on a fact finding mission. You are not calling to discuss account resolution, but want to know the status of the accounts. With no balance being reported on the one, it may not be owned by NFCU any longer. Once you know who owns the debt, if not Navy Fed, post an update and lets go from there.
Also, post what you can come up with to settle these debts.
Hey Michael. I have a question? I went to my bank yesterday to make a deposit and the teller asked me if I would like to update my credit card for some new perks and such? The only problem is to my knowledge I have never had a credit card with this bank. They said it was opened in 2001 and had a $1,000 balance on it! I was floored. Long story short, I sat down with a bank officer and am going to be in touch with their fraud division either today or tomorrow. In the past 13 years I have never received any mail or phone calls from collection agencies nor did I see anything strange on my credit report from several years ago. In the highly unlikely event that this IS my debt would I still have to pay it after 13 years? From my understanding there is a statute of limitations in my state of NY that says I cannot be sued for this debt after 6 years.
karl – Pretty odd thing to have happen. No, a 13 year old debt is highly unlikely to be sued on, and your response would be really brief and to the point, so not a big worry.
If u pay on a collection that’s 9 years old and off your credit report ..will it reappear on it again?
Sean – A paid collection account should not reappear on your credit report after it has already aged off. But do not let credit reporting threats be the measure you use to pay, or not pay a really old debt.
I’m having a collector call me with different phone numbers all over the state.The debt is from 2005 and is not on my report anymore..I contacted the original owner and they said it was sold and they could not tell me who owns it now. They also said sine the 7 year SoL was up that I don’t have to pay for it..The collector will not email or mail me any info about the collection just tell me over the phone until we start the payment process.my question is this..
1..Can this be re-open on my credit report since they have contacted me after 9 years.
2.. what is this threat he is taking about having someone bring papers and serve me with over a 9 year old debt…
3..I made a mistake calling with guy back on Work cell phone Cause wife was freaking out over the home message they left..how can I get them to stop calling it..I’ve block 5 numbers now
Thanks
Sean
Sean – A negative item that falls off your credit report – when it is too old to stay there – should not show up again. Not if you paid it off, settled, etc.
The threat about suing you is likely an empty one. If your states SOL to legitimately sue is passed, that threat is empty and can be considered harassment. It is a good idea to run what is happening here with an experienced attorney who sues collectors for violating state and federal laws. Many attorneys of this type will take on your case with no cost or retainer, so it is worth taking the time to talk to one and learn about your options. I can refer you to some if you like. Just let me know the name of a nearby larger city.
You can stop the calls with a cease communication letter to the debt collector in most cases. But if you are dealing with a collector who has already shown a willingness to harass, I am not sure how effective that will be. If you do talk with them, get as much information from them as you can, and post that here for further discussion and/or share that with an attorney you may consult with.
Hello Michael,
I am back again, so I have gotten more of my debt settled, and settled with pay to delete! Everything left on my credit report is all over the 6 years SOL for Arizona (for taking me to court) but I want to stop the reporting and finish settling. I am wanting to dispute a few things because the dates are all messed up and different credit agencies have different dates and amounts. How do I go about sending these letters? Do I send it to each individual credit reporting agency (experian, transunion, equifax) or to just one main company? I also have a question when it comes to the 30-day rule. If they delete it from my credit report because they were not able to verify the debt, can I settle the debt still (I know I owe it) and will it prevent it from showing still? Or will it show back up because its now a settled debt? Thank you for your help!
Jennifer – Very cool that your original question that started this page, and our comment exchange, is from nearly a year ago, and you are back to update with the progress you made. Congratulations on those successes!
Send all of your credit report disputes certified mail with return receipt requested. Document your disputes in a file with all copies and green return cards. Send the dispute to all relevant credit reporting agencies, and I like to include a copy to the offending furnisher who is giving the CRA’s the bad information.
If your disputes do not result in only accurate, complete, and correct info being reported, post an update and lets go from there.’
There are real concerns for settling debts that are no longer appearing on your credit reports, but that are still within the 7 to 7.5 years to legitimately show up. Standardized systems can mean a debt settled; account is updated with current debt collector/debt owner; an update to the credit reporting systems can occur.
How close are these debts to the 7 year marks?
Michael,
These debts have just hit the 6 year mark so another year and a half before they drop off, so I want to settle them so they don’t keep reporting but this will be over the next 6 months. Also there are old accounts that are showing closed/written off but their dates dont match either, they are showing a later date then what they really are. I want to correct those closed/written off accounts so they fall off accordingly. The others I do owe but its not the amount they report and the date shows pretty much as the date the collection agency received the debt which is anywhere from 1-3 years later. If those debts can’t be verified for some reason and the credit reporting companies remove them isn’t there a chance they can show back up later after verified? I will work on the letters to each individual reporting agency this weekend and send out. I was told by someone to originally start them all as “not my debt” , then once they can verify that, then go from there on then sending for the dates to be corrected and the amounts. Also are they allowed to add interest after they have taken on these accounts or should they be the same amounts that the original lender last reported? Thank you for all your help Michael, you really are doing something so amazing with this site and helping people get their lives back on track, and its amazing you don’t ask for a thing in return.
Jennifer – Sorry for the delay in responding. I moved, and things did not go smoothly.
I would not raise disputes with the accounts you still have to settle as it can (but not always), raise the collectors/debt owners awareness that you care about your credit and have a goal. If you have already sent those letters, do not worry about it, you can use talking different talking points if something gums up the process.
I am not a fan of disputing something as not your debt, if it is, or across multiple accounts in the same letter. That strategy is less and less effective,m and can also lead to your later follow up disputes being tagged as frivolous (based on prior dispute behavior).
Debt collectors and debt owners can add interest and fees that are allowed for in your original creditor agreements, or legal interest if a judgment. It is has been hard for them to prove their calculations up,and we are currently looking at rules and regulations changing soon that could cause all collections fees, charges and interest to be fully detailed and transparent. But those changes are not likely to come before you achieve your goals in the next 6 months.
I do not ask for anything in return… unless someone brings it up. And because you did, if you believe you received something of value from the site, please consider picking up some extra food on your next grocery trip and donating to your local food bank – And for that I will thank you!
I just received a call asking me to settle an account where I last gave payment in 2003 which is what the lady said on the phone. I honestly can’t remember since its been years since that last card and now I gave good credit. I told her I wanted to dispute it and had no info regarding that account anymore since it was over 10-11 yrs old. Can this still affect my credit now? What do I have to do to make sure it doesn’t affect it now and have them stop calling me?
Brissy – This collection debt should not reappear on your credit reports now.If it does,post an update as soon as you discover it.
Sending a debt collector a certified letter (send with a USPS return receipt green card too), where you request they cease any and all further communication with you, is much safer to do when your states SOL has passed. If you are certain of that, it means they cannot file a legitimate collection lawsuit. If that same collector calls, or writes, after they receive your letter, post an update.
I recommend you monitor your credit reports regularly. You can do that free through http://www.annualcreditreport.comusing one free report for the three major bureaus every 4 months. SO pull one today from Experian, another in 4 months from TransUnion, and the third 4 months after that from Equifax. This time next year you would be pulling Experian again.
How is the FCRA compliance date set for medical collections accounts. I have 2 accts from 2007 with DOFD listed as 2009. I disputed several times and keeps coming back verified. The bills are from two ER visit co payments
Melanie – Most any negative entry on your credit report is going to have a 7 to 7.5 year shelf life. There are some limited exceptions to this, but the fact that this is medical debt is not one of them.
Add 7, or 7 and a half years to 2007 and the debts would age off this year. If 2009 is the starting point the credit reporting agencies are using, even longer.
What is the position you are using in your disputes?
Ok, so my husband and I have taken on the responsibility of tackling our credit and cleaning it up. We paid off 4 debts that were shown on my husbands credit report. Now all of a sudden other creditors are on the credit report that were not there 2 months ago. One of them is from a Collection Company that acquired the acct from the original Cellular Company. Now if the Cellular Company ever reported this as a charge off on my husband’s credit report, how can the Collection Company that now owns the debt report to the credit report. It’s like getting slapped twice for the same debt. Is that legal?
Selyn – Unfortunately yes, and it is all too common. But be sure only one creditor or debt collector is reporting a balance owed, as multiple credit report entries for the same account balance due is wrong, and can be fixed.
🙂 that is such great news to hear…Thank you so much for your help.
thanks for your reply…Im in the process of cleaning up my credit to get a loan for a house in 3 years or so…so I want to get rid of all negative accounts on my file and keep them off…but I know this process is going to take time I started last year Jan 2013 with my credit clean up so far so good just a few loose ends.
You do not need every negative off of your credit report to qualify for a home, or to get the best available interest rate. These days, with new mortgage lending rules, you do want to have unpaid accounts resolved. You have a huge head start over most folks who look to repair their credit to make a large purchase like a home. I suspect, from all of your comments about your current situation, resolving all collection accounts; maintaining good accounts on your credit reports now (or obtaining a couple if you are light on credit trade lines); saving money for a down payment; and maintaining a healthy debt to income ratio, you will be golden in 3 years.
I have a 8 year old collection and the old debt is resolved but the new collection agency has picked it up and has added an additional 2 grand to the account. Do you think i should send in a dispute or leave it be?
marcus – It sounds like the old collection is passed the point of showing on your credit reports, is that correct?
When was it you resolved the old debt? Who did you resolve it with? Who is contacting you now?
I can offer better feedback if I know the answers to those questions.
btw thank you for your reply and your welcome 🙂
Will – Depending on the credit scoring model, your score can go down some with a paid collection. But some models do not hit you for a paid collection. The ones that do, only temporarily. Are there other debt collectors showing on your credit reports? And how long ago was it that these debts were paid?
The debt isnt paid yet thats the thing I was going to set up a payment plan but its no longer on my report there was three other ones but they got paid off last year they were small balances ..are they able to keep deleting a account then keep putting the account on back on the report?? and if so would I be able to dispute the account if if does show back up ?
Will – Once you pay it, and if it does show back up on your credit reports (I suspect it will), it may not be that big a deal, and less of a deal (credit score hit) over time.
Do you have a big credit or loan product you are seeking in the next 3 to 6 months? How about in the next year?
What would be the premise of your dispute if the collection account shows back up after you pay, or agree to make payments?
well is a collection account that had a balance of 412 that i was looking to make a payments on but when I seen that it wasnt on my CR that kinda messes things up because if it some how get back on my CR it will drop my score right?
Hi Michael I been reading all your reply’s for ppl answers which I think is just awesome you give nothing but great advice…I have a question I had a At&t cell phone bill that was put on my credit report by three different creditors each with different amounts march 2013 I disputed the incorrect amounts and different accounts down to one account which is accurate that i know of they are reporting to EQ and Ex I pulled my CR again just a few weeks ago feb 25 2014 the account is no longer on my report is it possible who ever took it off can put it back on my CR?
Will – Thanks for the thumbs up. I am assuming the reporting you want back up there is a positive trade line? Who was reporting it? What is the reason you are sensitive to it being back on your credit reports?
They are very old credit card debts. I think I will just ignore the letters. Thanks for you response Michael! You have been very helpful.