Your questions are:
When does the seven year period of archival begin.
Can collection accounts be reported for an indefinite period.
How long will charged off accounts remain as part of your credit
profile considering your Chapter 7 filing in 2002.
To begin with, your Chapter 7 filing will remain for a period of 10
years from the date your petition was approved by the Bankrupty Court,
this impacts your credit profile based on lenders you are requesting
credit from and what period of time has elapsed since your filing and
your financial profile since.
The I9 / R9 accounts certainly don't help, and you can have these
removed by filing disputes with the three major credit bureaus, this
is easily achieved with their online portals, and best achieved if you
purchase their credit protection memberships. This is because it is
just easier to use and keep track of the status of your disputes when
you have a membership, they range anywhere from $75 - $100 per year
depending on the credit reporting agency.
You can also complete these dispute requests in writing, be prepared
for the lag in US Mail since they generally won't correspond with you
over the phone about account disputes.
Regarding when the 7 year period begins, ++READ FURTHER ON HOW TO
REMOVE THESE COLLECTION ACCOUNTS++ it begins from date of last
activity, sensibly speaking the paper was purchased by the collection
agency on a certain date and will remain from date of last activity,
so if they sell it -the period begins again.
Consider that your existing and current credit card, installment
agreement accounts begin from date of last activity.
NOW, what you need to do to remove these collection accounts, is work
out reduced settlement or full payment. Most agencies that paper will
purchase it with the understanding that successful resolution is slim
and are willing to settle for 80% immediately on the first phone call.
If you want to endure their verbal abuse for a longer period, you can
negotiate less than an 80% settlement through a series of
communications with them.
THEN, wait about 60 days from the end of the calendar month you paid
them (MORE ON THIS LATER).
NEXT, file a dispute with the credit reporting agencies, use the
reason you want to explain why the accounts should be removed.
WAIT about another 45 days and the collection accounts will be removed
from your credit history.
BECAUSE, collection agencies are singularly motivated by what they can
collect, they typically don't respond to requests from credit
reporting agencies about accounts they've resolved. The scenario is,
you paid them off on March 15th, on May 30th you file your dispute
with the credit reporting agency.
The credit reporting agency sends the creditor (Citibank, American
Express, or Nasty Collections Inc.) an inquiry / request for further
information.
BY LAW, the creditor has 30 days to respond, if they fail to respond
-your dispute is accepted.
YES, it can re-appear during the creditors automated update process
with the reporting agencies, however collection agencies gear their
internal processes to make the intial impacting report to get your
attention (this seems to have happend to you already), they aren't
really in the credit reporting business and it doesn't benefit them
financially to continue to report monthly on all of their account
activity.
Most collection agencies have a hard time tracking internally what
they've received, several people who have read this post to this point
can attest to this statement if they've ever made a payment to a
collection agency and it takes them 60 days to figure out they have
it.
The way the credit reporting process works is, the creditor sends
electronic data to the credit reporting agencies on a monthly basis
most often it is still in the form of magnetic tape or optical disk in
the EDI format.
The credit reporting agency processes it and updates your credit report.
++ THIS IS THE ONLY WAY IT COULD BE DONE EFFICIENTLY IN THE COUNTRY
WITH THE GREATEST AMOUNT OF CONSUMER DEBT ++
+++ THIS IS ALSO WHY MISTAKES MADE BY YOUR CREDITORS ARE INSTANTLY
PART OF YOUR CREDIT RECORD BECAUSE THE CREDIT REPORTING AGENCIES DON'T
HAVE TIME OR MECHANISMS TO VERIFY ANY OF THE INFORMATION THEY RECEIVE
+++
When you increase / decrease the balance of your accounts, it is
reported on a monthly basis, using electronic media, in EDI format.
For a collection agency that is constantly receiving or purchasing new
debt, their primary concern is getting it reported onto your credit
profile to get your attention, if they don't get your attention
immediately, they sure will when you try to apply for credit in the
future
THUS, THEY DON'T REPORT YOUR INSTALLMENT PAYMENT ACTIVITY, ONLY WHEN
IT IS PAID IN FULL.
WHEN THEY RECEIVE A FORMAL INQUIRY FROM THE CREDIT REPORTING AGENCIES
ABOUT YOU, THEY WILL LOOK TO SEE IF IT IS PAID OFF.
IF IT IS PAID OFF, THEY WON'T BOTHER TO RESPOND BECAUSE THEY ARE TOO
BUSY TRYING TO COLLECT MONEY FROM OTHERS WHO ARE STILL OUTSTANDING.
I hope this long winded answer helped you, and helps anyone else who'd
like to understand a little more about the collections and reporting
process.
I can attest to this, because I am collection agent of consumer debt.
Good luck to you in your endeavors. |
