How Long Do Collections Stay on Your Credit Report in the State of Florida?

Collection agencies purchase unpaid debts for discounted rates and then work to recover the full amount. One of the many collection methods these companies use is reporting the account to the credit bureaus. Once a collection account appears on your credit report, it lowers your credit scores and makes you a higher risk for future lenders. The reporting period for collection accounts is regulated at the federal level. In certain circumstances, however, Florida's state laws can impact how long collection information remains a part of your credit history.

Time Frame

The Fair Credit Reporting Act notes that credit entries from collectors can only appear on your credit file for seven years and 180 days. The reporting period begins from the date you defaulted on the original debt.

Although a collection account can appear on your credit report for a total of 7.5 years, few actually do so. Most creditors will attempt to collect delinquent debts without the aid of a third party for several months before charging off the debt and selling it to a collector. The amount of time a creditor holds onto an account before turning it over to a collection agency will vary depending on each creditor's individual policies.

Misconceptions

Consumers often confuse the reporting period for collection accounts with the statute of limitations that regulates lawsuits from debt collectors. After the statute of limitations passes, a collection agency may continue to report the debt to the credit bureaus but cannot legally file suit against you to collect it.

The statute of limitations for lawsuits in Florida varies depending on the type of debt a consumer owes. A company collecting unpaid credit card debt, for example, has four years in which to sue while a company collecting an unpaid personal loan can sue for up to five years.

Florida Judgments

Derogatory information on your credit report from collection agencies is not limited to the collection accounts themselves. If the collector sues you and obtains a civil judgment against you, the judgment becomes a matter of public record. Each credit bureau then inserts the collection judgment on your credit report.

According to the FCRA, the reporting period for judgments depends upon how long a given judgment is enforceable. If the state enforcement period exceeds seven years, the judgment remains for the state's enforcement period rather than the seven-year standard reporting period. A judgment in Florida is enforceable for up to 20 years. Thus, if a collection agency sues you in Florida, evidence of the collection account via the judgment notation will remain on your credit history long after the credit bureaus remove the original collection account.

Considerations

Although federal law prohibits collection accounts from appearing on your credit report for longer than seven years, it is the collector's responsibility to report the correct date of default to the credit bureaus. If a collection agency intentionally reports incorrect dates or changes the account's dates, the derogatory collection can and will remain on your credit report for longer than the federal reporting period---regardless of your state of residence. You can dispute obsolete collection accounts and, if illegal reporting has occurred, you have the right to report the activity to the Federal Trade Commission and sue the collection agency.