Although consumers understand that negative information on credit reports – such as an account placed for collections – generally “ages off” after seven (7) years, there is some confusion as to how that seven (7) year time frame is calculated. It is often incorrectly believed that the seven (7) year period starts to run from the date the account is first reported in collections. Under the Fair Credit Reporting Act (“FRCA”) the seven (7) year age off period for accounts that have been placed in collection (either internally by the original creditor or externally through an outside collection agency) actually starts to run from the date of first delinquency. The date of first delinquency is the date that a consumer missed the first payment prior to the account being placed in collection.
Credit reporting agencies many times do not have a record (or have an inaccurate record) of the date of first delinquency, which leads to collection accounts remaining on credit reports longer than they should. This coupled with consumer confusion as to the date by which the seven (7) year age off date begins results in collection accounts remaining on credit reports in excess of the time that they should.
If you believe that a collection account on your credit report is still being reported even though seven years (7) years has passed since the date of first delinquency it is important to seek the guidance of a skilled FCRA and Consumer Protection Attorney as soon as possible so that you may correct any inaccuracy in your credit report. To schedule a consultation to discuss your situation with one of our attorneys, contact The Kim Law Firm, LLC today by calling 855-996-6342.