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creditcaper1

will charge-off be deleted after 7 years if still unpaid?

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HI,

 

I had a credit card with Bank of America that first went delinquent in 2013.  It was charged off a year later in 2014.  BoA still owns the debt and I have been slowly paying it off every month.  It's going to take me at least 3 more years to fully pay off this debt.  Later this year will be 7 years since this account first went delinquent.  Will this account be removed from my credit report even though it's not paid off?  Thanks for the help.

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Yes, negatives are removed after 7 years. You have to bring an account current then default again to restart the clock. And the earlier default still falls off after its 7 years are up. In other words, negatives are limited to 7 years after the initial default.

Edited by cashnocredit

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Much will depend on the manner in which the report is updating each month.  The negative data would begin falling off at the seven-year mark, but if you had entered into some manner of agreement that modified how the account is updating, then it may or may not fall off of the report. 

 

How does the account actually report on the four bureaus at this moment in time? 

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51 minutes ago, centex said:

Much will depend on the manner in which the report is updating each month.  The negative data would begin falling off at the seven-year mark, but if you had entered into some manner of agreement that modified how the account is updating, then it may or may not fall off of the report. 

 

How does the account actually report on the four bureaus at this moment in time? 

Viewing it on my experian credit report, an N is listed every month.  Says it stands for Negative.  The balance is also updated every month also.

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38 minutes ago, creditcaper1 said:

Viewing it on my experian credit report, an N is listed every month.  Says it stands for Negative.  The balance is also updated every month also.

is this a PAPER report mailed directly to you by Experian?

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34 minutes ago, hegemony said:

is this a PAPER report mailed directly to you by Experian?

Nope.  I have a credit monitoring service with Experian and I see this information when I log in to my account.

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28 minutes ago, creditcaper1 said:

Nope.  I have a credit monitoring service with Experian and I see this information when I log in to my account.

Accurate and informed decisions necessitate having the paper reports from each of the four major bureaus.  You CANNOT possibly make an informed decision on what may or may not take place or what steps to take without having accurate data...and the online offerings from the bureaus are notorious for their shortcomings.  The data is being massaged to fit some "user-friendly" notion and routinely omits several items that ARE visible in the paper reports.  

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34 minutes ago, centex said:

Accurate and informed decisions necessitate having the paper reports from each of the four major bureaus.  You CANNOT possibly make an informed decision on what may or may not take place or what steps to take without having accurate data...and the online offerings from the bureaus are notorious for their shortcomings.  The data is being massaged to fit some "user-friendly" notion and routinely omits several items that ARE visible in the paper reports.  

I see.  Which piece of information on the paper reports would help me figure out what will happen come the 7 years?

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28 minutes ago, creditcaper1 said:

I see.  Which piece of information on the paper reports would help me figure out what will happen come the 7 years?

DOFD is what usually matters most. There are also opportunities to get early removal but I would not attempt any without have as much information about the tradeline (i.e., purchase a credit report to be mailed DO NOT USE A FREE ANNUAL FREE REPORT)... see https://creditboards.com/forums/index.php?/topic/590506-ordering-paper-credit-reports-information-inside

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21 hours ago, creditcaper1 said:

I see.  Which piece of information on the paper reports would help me figure out what will happen come the 7 years?

Once you have the paper reports and can indicate HOW specifically it has been updating, then the better guidance can be offered.  Sometimes, the paper reports will reflect that there has not actually BEEN any sort of updating where the online shiny bauble makes it appear as though there WAS regular updating. 

 

The fact that you are making regular payments on this is a complicating factor that does not exist with a lot of people who have derogatory items on their reports.  You are to be commended for your efforts at having stayed the course to make things right.  Too many simply walk away and take an approach that is akin to "screw the lender."

 

 

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3 hours ago, centex said:

 

The fact that you are making regular payments on this is a complicating factor that does not exist with a lot of people who have derogatory items on their reports.  You are to be commended for your efforts at having stayed the course to make things right.  Too many simply walk away and take an approach that is akin to "screw the lender."

 

 

Well, for starters, I'm going to guess that this account isn't generating a standard monthly bill.  If there's anything issued, it's a monthly update sent by collections.

 

Continuing to make payments in collections on any account doesn't reset any portion of the reporting SOL.  This account should be removed no later than 7 years 6 months from the "Date of First Delinquency", residual balance notwithstanding.  (As frequently discussed, in practice CRA's remove most all such accounts 7 years after DOFD.)

 

As centex suggests, creditcaper's continued repayment of the account is exemplary ... so much so that, in his/hers shoes, I'd write their Executive Customer Service office and ask them to review the account activity to see if a new account might be extended, refinancing the remaining balance under the new credit line.

 

There are pros and cons to this.  However, if creditcaper has a thin file of open accounts, this could be an excellent prybar into a new unsecured revolver.

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39 minutes ago, hdporter said:

 

Well, for starters, I'm going to guess that this account isn't generating a standard monthly bill.  If there's anything issued, it's a monthly update sent by collections.

 

Continuing to make payments in collections on any account doesn't reset any portion of the reporting SOL.  This account should be removed no later than 7 years 6 months from the "Date of First Delinquency", residual balance notwithstanding.  (As frequently discussed, in practice CRA's remove most all such accounts 7 years after DOFD.)

 

As centex suggests, creditcaper's continued repayment of the account is exemplary ... so much so that, in his/hers shoes, I'd write their Executive Customer Service office and ask them to review the account activity to see if a new account might be extended, refinancing the remaining balance under the new credit line.

 

There are pros and cons to this.  However, if creditcaper has a thin file of open accounts, this could be an excellent prybar into a new unsecured revolver.

The reason that it IS relevant is that it COULD determine whether the account ages off or whether the reporting that causes the most trouble simply drops off a month at a time.  Depending on the CURRENT reporting, as shown on a paper report, OP may be in a position where they are best served by having the account continue to report as opposed to losing the age. 

 

Thus, paper report is necessary to best determine where things really stand.  Beware the law of unintended consequence...something so often ignored in the haste of joining a race to 800. 

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3 hours ago, centex said:

The reason that it IS relevant is that it COULD determine whether the account ages off or whether the reporting that causes the most trouble simply drops off a month at a time.  Depending on the CURRENT reporting, as shown on a paper report, OP may be in a position where they are best served by having the account continue to report as opposed to losing the age. 

 

Thus, paper report is necessary to best determine where things really stand.  Beware the law of unintended consequence...something so often ignored in the haste of joining a race to 800. 

 

I understand (I'll assert, however, that the report download detail will likely reveal much in itself).  Bottom line, I haven't disputed anything you've asserted.

 

What I've indicated is my VERY STRONG gut feel for how the account is billing (not by standard monthly statement) and the current status (charge off / collection).  If that is the case, the tradeline drops at the reporting SOL

 

And, yes, the hard copy report should provided the strongest indicator of the reporting status.    As you suggest, under no circumstance should the account be disputed prior to reviewing the hard copy to assess the possibility that continued payment performance on the tradeline may continue to report. 

 

But it's a hard fact that if the account isn't showing present payment activity with a "C" (current) manner of payment status (and I think that highly unlikely), that won't change once the charge-off status is obsolete (non-reportable).

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Thanks for the information from all you guys.

 

What are the chances that I might get sued before the 7 year time period?  I have been making regular payments, but maybe the bank will be worried that if the tradeline is removed from my credit report, I will stop paying.  (I wouldn't stop paying either way)

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17 hours ago, hdporter said:

 

 

As centex suggests, creditcaper's continued repayment of the account is exemplary ... so much so that, in his/hers shoes, I'd write their Executive Customer Service office and ask them to review the account activity to see if a new account might be extended, refinancing the remaining balance under the new credit line.

 

There are pros and cons to this.  However, if creditcaper has a thin file of open accounts, this could be an excellent prybar into a new unsecured revolver.

I didn't even know something like that could be done.  The only problem I can see with that would be paying interest.  Right now my debt is not being charged interest.  I'm assuming if they granted me a new account, there would be some interest I would have to pay.

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Yes, there would be interest.  (Obviously one of the "cons" ;)

 

There are no guarantees with this suggestion.  It may be that they would only extend a card with a 29.9% APR.  (But they'll need your consent to follow through, and you can decline if the terms are unattractive.)  Most likely, the card limit will narrowly exceed your current liability.

 

I don't know anything about your current credit profile.  If it should be the case that revolving credit with a reputable lender (using term "lightly" when it comes to BA) isn't otherwise attainable, then this could be a worthwhile option to explore and may considerably accelerate your credit rebuilding efforts.

 

I would suggest when making the request, you state that you want the outstanding balance transferred to the account with a 12-mo 0% APR promotional rate allowing a "smooth transition".  That would give you maximum incentive to accelerate repayment to the best of your ability.

 

I can't predict how the proposal would be received.  However, I have to think that getting a long duration account out of collections and into an ultimately revenue generating account should have considerable appeal to them.  In all respects a "win-win" situation, provided that you have a sufficiently consistent payment history that suggests they can reasonably rely on your continued account performance (with limited prospect of seeing the account return to collections).

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