JDB "Open Date" Requirements

[HarryGotHurt]

Are JDB's required to report the original Open Date of an account that was sold or does the Open Date becomes the day the debt was assigned to them every time a debt is transferred? I'm trying to see if a JDB committed a violation by listing an incorrect open date. 

 

[Clydesmom]

1 hour ago, Boisvert said:

Are JDB's required to report the original Open Date of an account that was sold or does the Open Date becomes the day the debt was assigned to them every time a debt is transferred? I'm trying to see if a JDB committed a violation by listing an incorrect open date.

A JDB or CA can only report from the date they acquired the account.  So if JDB #1 gets the account on July 2014 then that is the open date.  If they sell it to JDB #2 on March 2016 then JDB #2 can only report an open date of 3/2016.  This does not change the last reporting date which remains 7 years 6 months from the date of default.  The later opening date does not re-age the 7 year reporting period simply because the account was sold.

[Harry Seaward]

I don't think there is any real rule about the "open" date, since it really has no effect on the way the account is scored. Some jurisdictions may have decided this, so you'll have to check local caselaw to see if that has happened where you are.

The important date is the "date of first delinquency". That date must be the date of your first missed payment with the OC.

[Harry Seaward]

3 minutes ago, Clydesmom said:

A JDB or CA can only report from the date they acquired the account.

If this is true, how can they report DOFD?

[Clydesmom]

20 hours ago, Harry Seaward said:

If this is true, how can they report DOFD?

They can only report the "Opening" date from when they acquired the account.  That is different from the DOFD always.

[Harry Seaward]

4 minutes ago, Clydesmom said:

They can only report the "Opening" date from when they acquired the account.

Where does it say this? 

[Clydesmom]

22 minutes ago, Harry Seaward said:

Where does it say this?

For a good start right here on an Experian page:

https://www.experian.com/blogs/ask-experian/collection-account-deleted-at-the-same-time-as-original-account/

Here is a quote from the page:

"When a collection agency purchases an unpaid debt, the date opened on the account will reflect the date it purchased the account from the original or previous creditor because that is in fact the date a "new" collection account was opened."

Do a google search. There are hundreds of hits that all say the exact same thing.  The date opened as reported by a CA or JDB is the date they acquired the account.  It has NO effect on the DOFD.  So if a consumer defaulted in January 2014 then the account can be reported until July 2021 (7 years 6months after DOFD) regardless if a JDB buys it in January 2021 and has the trade line reporting that they "opened" the account 1/2021. 

[Harry Seaward]

17 minutes ago, Clydesmom said:

It has NO effect on the DOFD.

I understand, but you said a JDB cannot report anything that happened before they purchased the account. The DOFD falls into that category, so I'm wondering how you reconcile these two things. 

[BV80]

1 hour ago, Harry Seaward said:

I understand, but you said a JDB cannot report anything that happened before they purchased the account. The DOFD falls into that category, so I'm wondering how you reconcile these two things. 

 The CRAs determine the DOFD based upon the OC’s reporting.  15 USC 1681c which pertains to information on CRs and the reporting period is the responsibility of the CRAs.  

[Harry Seaward]

1 hour ago, BV80 said:

The CRAs determine the DOFD based upon the OC’s reporting.

Yep. I'm not challenging this fact at all.