My report reads the following:
"The following accounts contain information that some creditors may consider to be adverse. Adverse account information may generally be reported for 7 years from the date of the first delinquency, depending on your state of residence."

1. I've been reading that the 7 year limitation is based on the last action taken.. Is it from the first delinquency or the last action taken?

2. Is it based on my current state of residence or my previous state of residence in which the debt and collection took place, the previous is California and the current is North Carolina if that helps?

The debts I'm most concerned about read dates like:
"Estimated date that this item will be removed: 01/2012"

I do want to pay it and put the mistakes of the past behind me so I can move on. But, if paying it will start me back on the 7 years cycle I don't know what I'll do. I've already suffered for years, and know I still have another 4 to go, but to make it another 7 is a breaking point. I've worked so hard to get back to a point so that I can afford to work on this debt. I know it's best to pay it, but I want to know what more consequences I have to suffer for finally being able to pay it?

Any help will be appreciated... I'm really hoping what the report says is correct and that the date's will remain the same so I don't feel like I'm worse off after paying it off. Thanks

As long as the account is active, meaning payments are continuing, it can be listed on your creditr report. But the 7 years is from data of delinquency. What you are reading about data of last activity is for Statute of Limitations purposes. That is different from how long it stays on your credit report.

This will be the first opportunity I've had since the time of collection to pay on it. But, I will be paying it all off next week rather than in monthly payments. The two debts in question are very similar and one is shown below:

Loan Type: Credit Card
Remark: Account closed by credit grantor
Estimated date that this item will be removed: 01/2012

1. I just want to be sure I understood you correctly. The 7 yr. limitation is only related to the SOL, essentially it's their legal time limit for which they can pursue legal action against me to receive the debt correct?

In my case, as I'm paying the debt off, I have no real reason to be concerned about the 7 yr. SOL right?

2. In regards to that "Estimated date that this item will be removed: 01/2012"... assuming I pay it off now as intended, this debt will not show up on my credit report after 01/2012 as stated on the report?

Could it drop off earlier? I'm fearful to ask but, could it be later as well?

3. What action, if any, should I or have the collection agency take so that I am sure they are the correct and current agency to which I owe? If so what should I ask to be sent to me? Is asking them to fax the confirmation the ideal way?

Again, I really appreciate the help and I'm really looking forward to finally being able to move on!

I disagree with your first answer.

The information I have received said that the debt stays on for 7 years from the last date it is reported.

In essence, a creditor can keep it on your bureau for as long as they want by simply continuing to report the debt for as long as they want.

I could be wrong, but I believe this is the case.

progunr, You are not wrong, But you can get it removed if there is no activity for 7 years.

Also if you are going to pay them in full, before you pay them make a deal, you will pay in full, if they will make the account paid in full on the credit report and remove the negative reporting. Get it in writing.

They may or may not agree, but always worth a try.

So, they could potentially keep it on my credit report for 7 years after it's paid? Not to sound ridiculous, but what is the purpose of the section stating the "estimated date that this item will be removed" if they can simply keep changing it as they see fit, even after the debt is settled? Even so, after the 7 years, if at which point if it is not removed by the collection agency, I have a legal right to have it removed?

A question for Fr_Chuck;

How do I go about requesting an agreement such as the one you mentioned? Any tips for when I contact them that may help to make them more likely to agree to terms like this? And, an agreement like will have it removed from my credit report, moved to the "Satisfactory Accounts" section, or other?

I'll be getting married later this year and will be starting a family life, and as such buying a home isn't too far in the future. I want to get this finished but I want to make it as painless as possible!

Not after its paid. But as long as the account remains delinquent, they can keep re reporting it. Once its paid or settled, it can be purged 7 years later.