How does CRA determine 7 yr. drop-off date?

[lindy1]

I have several accounts that were 30 days late 4/2000 and charged off. I did make several payments after the 120 days late. The accounts went back to 30 1/01 and 120 4/01. I see some discrepancies with the dates between the CRA's, along with the dates. I'm past the SOL, but would like to finally get rid of this baggage!! Any info would be appreciated. I'm planning to start a dispute process, but I'd like to know if pursuing the 'over 7 years' is appropriate, or just 'inaccurate data'

Thanks!

[merkurfan]

if they never went current after 04/2000 (you where always at least 30 days past due) dispute as past reporting date.

[1flyfisher]

I have several accounts that were 30 days late 4/2000 and charged off. I did make several payments after the 120 days late. The accounts went back to 30 1/01 and 120 4/01. I see some discrepancies with the dates between the CRA's, along with the dates. I'm past the SOL, but would like to finally get rid of this baggage!! Any info would be appreciated. I'm planning to start a dispute process, but I'd like to know if pursuing the 'over 7 years' is appropriate, or just 'inaccurate data'

Thanks!

I believe the Date of First Delinquency would be 4/2000 when you first missed a payment and never got caught up.

Remember though that it 7 years + 180 days from DOFD. So in your case I believe it would come off September 2007

[lindy1]

Ah, but with a payment, they went current, I think. At least that is what I see from the CRA. It's a number (30, 60...) or an *, which is a payment or alls-well, I'm guessing. I've read that a payment can sometimes reset certain processes (time-clocks or collections) I'm wondering - what can reset the payment clock, and what cannot?

[1flyfisher]

Ah, but with a payment, they went current, I think. At least that is what I see from the CRA. It's a number (30, 60...) or an *, which is a payment or alls-well, I'm guessing. I've read that a payment can sometimes reset certain processes (time-clocks or collections) I'm wondering - what can reset the payment clock, and what cannot?

I believe a payment will not reset the SOL for your credit report. If however you were late in April and then brought the account out of the late status then that is when the DOFD occurred. There is a good explanation under all the SOL articles on this site I suggest reading that. I believe if you make a payment it can reset the collection SOL, not the credit reporting 7+180 days SOL for your credit report. There are two SOL's. Did you know that? One for your credit report and another SOL for collections.

[Littleman]

Holy Cow!!!

I didnt no there were 2 sol

Hmm might have to recheck all my reports.

[bigjohnstud4200]

I believe a payment will not reset the SOL for your credit report. If however you were late in April and then brought the account out of the late status then that is when the DOFD occurred. There is a good explanation under all the SOL articles on this site I suggest reading that. I believe if you make a payment it can reset the collection SOL, not the credit reporting 7+180 days SOL for your credit report. There are two SOL's. Did you know that? One for your credit report and another SOL for collections.

I'm not sure this is entirely correct. I believe the SOL on reporting is determined by the DOFD of the OC. Making a payment to a CA MAY restart the time they can collect, but I don't believe it can restart how long they can report.

[1flyfisher]

I'm not sure this is entirely correct. I believe the SOL on reporting is determined by the DOFD of the OC. Making a payment to a CA MAY restart the time they can collect, but I don't believe it can restart how long they can report.

That's what I said in my post..... SOL for collection CAN be reset with a payment SOL for reporting can't be reset.

[bigjohnstud4200]

That's what I said in my post..... SOL for collection CAN be reset with a payment SOL for reporting can't be reset.

oh yeah, my bad. it's been a long day.

[Ahntara]

SOL is state law. It concerns the viability of a lawsuit to recover money owed and establishes allowable remedies, like attachment to real property, seizure of bank accounts and wage garnishment, should a judgment be granted.

Reporting Period (RP) is the length of time, established by the federal FCRA, that information may appear on your CR's.

Therefore, RP is standard across the board, SOL varies not only by location but also by the type of account. Certain state's SOL laws can be tolled or re-set by some actions.

Crucial to understanding your question is the issue of default.

You can have late payments on an account without it necessarily going into default. If you had late payments in 4/2000, but the account did not default at that time, then those late payments are moot.

So, the question is: When did the account go into default? THAT date will determine the beginning of RP. The FCRA provides an exact formula in 1681c, Section 605 as "...upon...expiration of the 180-day period beginning on the date of commencement of the delinquency which IMMEDIATELY PRECEDED the...action...". Nothing can legally change that date. Data Furnishers are required to furnish this date to the CRA's. So, they DO have it, it just doesn't display on your CR. You may have to call them to obtain the date they have on record.

SOL (specifically a Cause of Action under SOL law) would begin on the month you first missed a payment, which led to default...

"...I did make several payments after the 120 days late..."

Those payments MAY have reset RP, but probably didn't. They probably DID reset SOL, but to know for sure you will have to read your state's law.

There is good stuff on this issue in one of the FTC opinion letters; not to mention tons of info here. This is a frequent question...

[row]

Reporting Delinquencies -- Section 623(a)(5).

If CA report information about a delinquent account that's placed for collection, charged to profit or loss, or subject to any similar action, CA must, notify the CRA of the month and the year of the commencement of the delinquency.

For example:

If consumer becomes delinquent on March 15, 1998. The creditor places the account for collection on October 1, 1998. In this case, the delinquency began on March 15, 1998. The date that the creditor places the account for collection has no significance for calculating how long the account can stay on the consumer's credit report. In this case, the date that must be reported to CRAs within 90 days after you first report the collection action is "March 1998."

If consumer falls behind on monthly payments in January 1998, brings the account current in June 1998, pays on time and in full every month through October 1998, and thereafter makes no payments. The creditor charges off the account in December 1999. In this case, the most recent delinquency began when the consumer failed to make the payment due in November 1998. The earlier delinquency is irrelevant. The creditor must report the November 1998 date within 90 days of reporting the charge-off. For example, if the creditor charges off the account in December 1999, and reports this charge-off on December 31, 1999, the creditor must provide the month and year of the delinquency (i.e., "November 1998") within 90 days of December 31, 1999.

If consumer's account becomes delinquent on December 15, 1997. The account is first placed for collection on April 1, 1998. Collection is not successful. The merchant places the account with a second collection agency on June 1, 2003. The date of the delinquency for reporting purposes is "December 1997." Repeatedly placing an account for collection does not change the date that the delinquency began.

If consumer's credit account becomes delinquent on April 15, 1998. The consumer makes partial payments for the next five months but never brings the account current. The merchant places the account for collection in May of 1999. Since the account was never brought current during the period that partial payments were made, the delinquency that immediately preceded the collection commenced in April 1998 when the consumer first became delinquent.