How long does a creditor have to report a bad dept on your credit report?
msldybug2003 asked:
I Just received a letter saying my old account from bank of america has been purchased by Nco Financial Systems. Their saying if I dont pay them in 30 days they will report me to the credit bureaus. Now this Bank of America account is from 3 years ago. Its not a credit card. I had a bank account with them and had a balance. So can they report this to my credit report after 3 years later?
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I Just received a letter saying my old account from bank of america has been purchased by Nco Financial Systems. Their saying if I dont pay them in 30 days they will report me to the credit bureaus. Now this Bank of America account is from 3 years ago. Its not a credit card. I had a bank account with them and had a balance. So can they report this to my credit report after 3 years later?
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Tags: Bad Credit, Bank Of America, Credit Card
August 26th, 2008 at 8:48 pm
Yes, they can report it after three years.
August 28th, 2008 at 6:17 am
Per the Fair Credit Reporting Act derogatory accounts can be reported for 7-years from the date of first delinquency.
August 29th, 2008 at 1:13 pm
Even though this debt was purchased from Bank of America, you might want to see what your state statute of limitations is on collecting the debt, You can find this at the following web site:
If the debt is time barred (past the SOL) then all the collection agency can do is hound you, they could not seek legal action in court to collect.
Even if they did report it on your credit report, the reporting period on your credit report will still be 7 1/2 yrs from the date of last missed payment. The collection agency can not redate the debt as per the following:
Running of Reporting Period - Section 605 [15 U.S.C. § 1681c]
As of December 29, 1997 the reporting period runs 7 ½ years (7 years plus 180 days) from the date (month and year) of the last delinquency (known as “last missed payment:).
So, regardless of how long a creditor waits to charge off, sell or transfer a debt, they must report the true and correct “delinquent or last missed payment” date (month and year) that preceded the creditor’s action. The additional 180 day period accords a measure of flexibility to credit bureaus whose furnishers may provide them with the wrong date. However, the expansion of the time period that Section 605 allows chargeoffs and similar actions to be reported accents the desirability of treating the “commencement” of the delinquency as the first missed payment — not some later date that would further extend the period.
Hope this answer is of help to you
LEGAL DISCLAIMER: The answer provided here is intended for informational purposes only. It is not intended nor presumed to be legal counsel or professional legal advice