How long can an old unpaid collection account stay on my credit report?

The situation

I am currently living in Ohio and I am trying to apply for a new car loan, but my credit score is much lower than I expected. I pulled my own report from a major credit bureau last week and noticed a collection account from a medical bill that I never actually paid. This specific debt was sent to a collection agency back in May 2015, which was about nine years ago. I have already called the collection agency to ask them to remove it, but they told me they have the right to keep it on my file since I still owe the balance. I also tried disputing it through the credit bureau's website, but they sent me a letter saying the information is verified and accurate. Since this debt is almost a decade old and was originally a medical bill from way back, I was under the impression that old negative marks were supposed to drop off after a certain amount of time. I am confused about whether they are allowed to keep reporting this specific account from 2015 on my current report or if it should have been deleted by now.

Detailed Analysis

Based on the information you provided, the medical collection account from May 2015 should likely no longer be appearing on your credit report. Under the Consumer Credit Protection Act, there are strict limits on how long negative information can be reported. Specifically, the law states that "Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years"^[1] cannot be included in your consumer report. This means that once an account has been in collection status for seven years, the credit bureau is prohibited from reporting it^[1].

In your case, the debt was sent to a collection agency in May 2015. Since it is now 2024, more than seven years have passed since that collection activity began. The law also specifies how that seven-year clock starts. It says the period begins "upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity"^[1]. This means the seven-year countdown starts roughly six months after your medical bill first became overdue, not necessarily the day it went to collections.

Because your debt is from 2015, it has almost certainly exceeded this seven-year limit. Even though the collection agency claims they have the right to keep it on your file because you still owe the money, federal law regarding credit reporting timelines overrides their desire to collect. The credit bureau's decision to 'verify' the debt only confirms that the debt exists; it does not give them permission to ignore the legal time limits for reporting old negative information.

Statutory Citations

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