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Can a Creditor Add Derogatory Information to a Closed Account?

Question: Can a creditor add derogatory information to a closed account? I had a credit card that was closed by the creditor. The account was in good standing at the time of closure. The creditor re-opened the account just to add derogatory information. I’m thinking this is wrong.

Answer: The only issues are (1) whether the derogatory information is accurate or not, and (2) whether the derogatory information is more than 7.5 years since delinquency. If the derogatory information is accurate and less than 7.5 years old, the time when it was reported is not material.

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