Will negative info be removed after 7 years?

Hi Richard

Welcome to the forums.

Accurate negative information will be removed from your credit file after the 7 years reporting time as per the FCRA laws. The same is applicable on U.S. Government insured or guaranteed student loans.

Failure to pay the debt might be hurting your credit record allowing certain guarantor actions. These accounts will be reported by the credit bureaus from the date of opening for the next 7 years.

Regards
Roxette

Someone told me that each time you are in contact with or make a payment to a debt collection agency they 7 year cycle would start over. Is this true?

Your payment is dependent on the SOL period in your state. SOL is calculated from the date of last activity in your account. Check the SOL in your state and see if the debt is within the collection period. If it is, the collector might try to collect money from you enforcing some legal actions.

If the debt is past the SOL period, you can't be legally forced to pay the said debt. This law changes its shape if you make payment towards the debt account even once. The date of last activity is renewed and the SOL period will be calculated from this date onwards. Now the collectors might try to force you again to pay it even if it was once out of the collection period.

Thus, it is very necessary to check the SOL in your state. If you are contacted to pay a said debt occurred some time back, clarify the statutes before you agree to pay off debt.

The debt is also determined by the 7 years reporting time. Accurate negative information stays on your file for a maximum period of 7 years. If an account is shown unpaid and is there for 7 years, it will be automatically removed by the credit bureaus after this period. Activating an SOL also enlarges the 7 year reporting time in the credit file.

Thanks for the info! But what is sol?

SOL stands for Statutes of Limitations. Any open ended accounts such as the credit card accounts are linked to the SOL period. This is also enforced on oral agreements, promissory notes, written contracts, loans, mortgages and car payments as well as foreign and domestic judgments.

Each state has its own SOL period. Can you tell me the state where you are presently living? I will be able to let you know the SOL period in your state. If any of your account passes the statutes period based on the date of last activity, you cannot be legally forced to pay it.

FL

In Florida, written contracts are within the 5 years collection period and oral contracts are 4 years as per the SOL.

So, if any account, written or oral, has passed this period of time, the collectors or creditors cannot force you with legal actions.

Thank you very much!