lilxtina13

7 Year Clock

Recommended Posts

Hi everyone! I am new to the message board. If a similar question has been posted previously, I apologize in advance.

I financed an automobile in Nov 2001 through JACOM, a small credit union based in Los Angeles. I went through some tough times and became very delinquent on payments. My car was repossessed in Mar 2003(my last partial payment being Feb 2003.

I recently ordered a copy of my Experian credit report. The auto account is on my report as a negative item and it states that it will remain on my report 'til Mar 2012. That is 9 years from the date vehicle was repossessed.

I contacted the credit union. They said that "the 7-year clock starts from the date the balance was charged off/account closed". However, I read on the Experian Ask Max advice column that "Charged-off accounts: Remain seven years from the date of the initial missed payment that led to the charge off (the original delinquency date)".

I tried contacting the credit union again but they informed me that "I'm wasting their time". I am trying to get my life back in order and fixing my credit with accurate info is one of my priorities. I tried disputing via Experian online and by mail, but I received a response letter stating that this item could not be disputed again because they are claiming it was verified previously.

Questions...

1. Does the 7-year clock start at the original delinquency date, OR the date the balance was charged off/account closed?

2. If I am correct in this matter, since Experian will not allow me to dispute this matter, and the credit union will not speak to me, what would be my next option? Whom should I call or write to? Any SPECIFIC instructions would be greatly appreciated to point me in the right direction.

By the way, I am still making payments. Small amounts but it's what I can afford and I make sure to send at the end of each month. The credit union(original creditor) never sold my debt to an outside agency.

Thanks everyone! =)

Share this post


Link to post
Share on other sites

Shortbus: Yes, the account has been charged off. When I called the credit union regarding this negative item on my CR, they requested that I start paying off my balance, so I am making monthly payments.

Denita: I am making payments to the credit union.

Thanks so much. =)

Share this post


Link to post
Share on other sites

From what I understand, the SOL "clock" does not begin until the payments have been stopped and delinquent. If you are making payments, the clock has not yet begun ticking.

Share this post


Link to post
Share on other sites

I stopped making payments in 2003, which is when I became delinquent. The amount owed was charged off/account closed in 2005. I just started making payments again this year.

Thanks. =)

Tina

Share this post


Link to post
Share on other sites

Regardless of what the CU or EX say, this is what the law says:

Directly from the FCRA § 605 ©(1):

"© Running of reporting period.

(1) In general. The 7-year period referred to in paragraphs (4) and (6)(2) 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."

Share this post


Link to post
Share on other sites

By the way, I am still making payments. Small amounts but it's what I can afford and I make sure to send at the end of each month. The credit union(original creditor) never sold my debt to an outside agency.

Do you even have any idea how much you owe? How much was your car sold for? When was it sold?

Share this post


Link to post
Share on other sites
Regardless of what the CU or EX say, this is what the law says:

Directly from the FCRA § 605 ©(1):

"© Running of reporting period.

(1) In general. The 7-year period referred to in paragraphs (4) and (6)(2) 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."

To be clear, what this law says is that it can stay on your report for 7 years + 180 days after the first first deliinquency. So all of this talk of a "7 year" reporting period is actually a 7 1/2 year reporting period.

Share this post


Link to post
Share on other sites
Guest
This topic is now closed to further replies.