Seven years from the “charge off’ date is the limit. The longest time something can stay on your credit report is seven (7) years from the date of the last activity on the account.
The date of last activity on the account is, in most instances, the the date the account was “charged-off,”which usually occurs 6 months after you quit making payments. An account is”charged off” when the creditor writes it off as a loss, and placed for collection.
Since most consumers don’t know what a “charge-off” is and when it happens, it is probably more helpful to know a defaulted debt should definitely drop off your credit report after 7 years and 6 months from the date you missed your first monthly credit card payment and let it go into collections. Charged-off accounts are then sold to third party debt collectors like Midland Funding, Portfolio Recovery, Asset Acceptance, or CACH.
The assignment of the account to a new debt collector does not restart the 7 year clock. The collection companies cannot “re-report” the information to the credit bureau. That may give rise to FCRA and FDCPA liability. If your credit report shows that the clock got turned back, then you need to dispute this error with the credit reporting agency