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Personal Finances / Credit Cards and Consumer Debt
|Subject: Re: question about credit cards||Date: 6/27/2007 8:40 AM|
|Author: aj485||Number: 254926 of 308881|
According to this source, an open account is treated as active until it is closed.
This source looks likes a site that is run by a debt consolidation company. They are making several factual mistakes. Due to these two facts, I wouldn't trust information from this site.
The source says In most cases credit information will remain on your credit files for no longer than seven years from the account's Date of Last Activity or “DLA.” Your DLA will continue to update each month so long as the account remains open.
This is incorrect. The credit card company needs to continue to report activity on the account. If there is no activity, then most credit card companies do not report the account as active. There are some that do, but many do not.
The other incorrect statement is that most information will remain on your credit files no longer than seven years from the account's Date of Last Activity The FCRA requires that derogatory information stop being reported 7 years and 180 days after the derogatory occurrence, not the 'DLA'. (See http://www.ftc.gov/os/statutes/031224fcra.pdf ) So this site is misinterpreting the FCRA. Also, positive information can remain on your report indefinitely. As a general rule, positive information usually falls off your report 10 years after the creditor stops reporting it, which is generally when the account is closed.
Those were the factual errors I found in the first couple paragraphs. I didn't go any further.
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