That’s not quite right. The FCRA does indeed mandate that entries on a credit report regarding “Accounts placed for collection or charged to profit and loss” must drop off after seven years. But what is widely misunderstood is that the seven years does not start to run on the date the account first becomes delinquent as is often believed. Rather, the rule for when the time starts to run is this:
The 7-year period referred to in paragraphs (4) and (6)of subsection (a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.
15 U.S.C. § 1681c(c)(1). Thus, given the last payment in January 2010, it likely became delinquent in February 2010, as you indicated. You then add 180 days to that to determine when the seven year period starts, thus making it around August of this year that it would have to drop off.
The OP is entitled to have the credit report accurate. The first step is to contact the creditors/collectors reporting the erroneous information in writing asking that they correct the report to show the proper date of delinquency and the charge-off, if the charge-off occurred, along with making a written request to the credit bureau contesting the information as inaccurate. The FTC explains the rights of consumers under the FCRA and is a good place to start to understand your rights.