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Moderator Emerita
Posts: 3,090
Registered: ‎08-09-2008
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Re: AMEX Approval Scores


annalog wrote:

Marine,

 

I suppose I should have further explained the context of those two statements, but they are not incorrect.

 

He stated, for the last 6 years, the account showed 180 days past due.  It was not a charge off before he paid it.

Once he paid the account, the bank "incorrectly reported it"  as a charge off, instead of a paid account as they should have. 

Since the first time they reported it as a charge off was 12/11, the 7 year cycle now begins.

 

Actually, annalog, that is very much incorrect. I belive that you are confusing DoLA (Date of Last Activity) with DoFD (Date of First Default). It's a common misconception, actually. :-) The fact of the matter is that CRTP (credit reporting time period) for bad accounts begins with the date of the first default/delinquency that results in the account never again becoming current. It matters not that the OC never (before) reported it as a "charge-off". 30 days late was "default", and 180 days late, for the purposes of credit reporting, is an effective charge-off. The CRTP clock started ticking no later than 180 days after the first 30 day late (and does not reset for this default, simply because he made a payment. The delinquency will drop 7 to 7.5 years from the date of the first default (30 days late).

 

It's not uncommon, at all, for OCs or CAs to update the DoLA for the full length of time that a derog is reporting either. Sometimes, the DoLA is updated monthly. That has absolutely no impact on the CRTP. They can update it on the 11th month, of the 6th year, and that derog will still drop when it reaches 7 to 7.5 years.

 

Date of Last Activity is the date used by all the bureaus to remove tradelines.

 

Not at all. It's the Date of first default. And that's a good thing... if it was the DoLA, derogs would never drop.

 

Tradelines that are closed accounts and in good standing are removed after 10 years from the date of last activity.

 

Actually, closed positive tradelines *can* remain for up to 10 years from the date closed, not the DoLA. They may drop sooner, and if we're lucky one or two might fly under the radar and remain longer. I've got three closed accounts (revolving credit cards) that I closed in 2008 and 2009. On two of those accounts, the lender continues to update monthly-- DoLA is always the current months cycle. Still, pulling a full report, the estimated drop date is 10 years from the date the cards were closed. Nothing has change.

 

Derogatory tradelines that are charged off or sent for collection are removed after 7 years from the date of first delinquency.  (Your point.  Absolutely accurate)

Derogatory tradelines that are active accounts are not removed.  (His situation)

 

Not true, fortunately. Nobody would ever recover from bad credit if lenders had only to say that an account was actively (and perpetually) 180 days late... indefinitely. As a matter of fact, the FCRA strictly prohibits attempts to extend the CRTP by "reaging" debt. No revolving account stays open, 180 days late, indefinitely. After 90 days, it was an effective charge-off (from an accounting perspective). From a fair reporting standpoint (federal law, DoFD rules for credit card defaults) the DoFD was sometime in 2006 when the OP missed the first payment that led to the charge-off. 

 

It's been a great exchange.  I look forward to future debates! 
I won't comment any further on this for sanity purposes.   lol

 


Directly from the FCRA:

 

Running of Reporting Period

In general. The 7-year period referred to in paragraphs (4) and (6)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 23 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.

 

Collection activity does not begin uless you have missed a payment. The date that you do, the delinquency that leads to the other unpleasant stuff has commenced. Smiley Frustrated

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Mega Contributor
Posts: 15,453
Registered: ‎04-09-2011
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Re: AMEX Approval Scores


annalog wrote:

Marine,

 

I suppose I should have further explained the context of those two statements, but they are not incorrect.

He stated, for the last 6 years, the account showed 180 days past due.  It was not a charge off before he paid it.

Once he paid the account, the bank "incorrectly reported it"  as a charge off, instead of a paid account as they should have. 

Since the first time they reported it as a charge off was 12/11, the 7 year cycle now begins.

 

Date of Last Activity is the date used by all the bureaus to remove tradelines.

Tradelines that are closed accounts and in good standing are removed after 10 years from the date of last activity.

Derogatory tradelines that are charged off or sent for collection are removed after 7 years from the date of first delinquency.  (Your point.  Absolutely accurate)

Derogatory tradelines that are active accounts are not removed.  (His situation)

 

It's been a great exchange.  I look forward to future debates! 
I won't comment any further on this for sanity purposes.   lol

 


Smiley Indifferent

 

 




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Moderator Emeritus
Posts: 32,865
Registered: ‎08-04-2007
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Re: AMEX Approval Scores

I'd suggest asking your friend to pull his free reports from annualcreditreport.com. If he looks at them, he'll find a DOFD listed for that baddie. If it was showing a status of 180 days past due for the last 6 years, then the DOFD would be at least 6.5 years ago, meaning it'll fall off within the next few months if not already.

 

Even more revealing are the TU and EX reports. Those will list a drop off date.

 

In rare cases, a CO can turn positive and report as a positive account for an additional 3 years, but the account would be showing $0 with no lates.

Blogger
Posts: 2,876
Registered: ‎02-02-2012
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Re: AMEX Approval Scores


annalog wrote:

Date of Last Activity is the date used by all the bureaus to remove tradelines.



That alone.

Errr, no.

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Re: AMEX Approval Scores

Siren...,siren...,calling all cars....there's been a thread hijack!


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Registered: ‎01-27-2011
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Re: AMEX Approval Scores

Thanks guys for debating my situation, and even though this is a semi hijack, I'd appreciate any more advice on the situation.. I have proof that they wrote this debt off as a chargeoff in July 2006, it says it on all of my annual credit reports that I have on file. As soon as I made good on this debt in December 2011, they updated the tradeline as follows. They removed the CO mark for 7/06 and changed all of the "not reported" for every month leading up to December 2011 as 180 day late's, and replaced the CO in December. I called and said that they can't do that, since they already wrote the debt off in 2006 and HSBC's response was that they only relayed the info that was paid to the credit bureaus and that is how the bureaus decide to report it....which I think is a load of crap. HELP, this is the only thing killing my credit.
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Moderator Emeritus
Posts: 17,409
Registered: ‎07-14-2009
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Re: AMEX Approval Scores


FicoTron wrote:
Thanks guys for debating my situation, and even though this is a semi hijack, I'd appreciate any more advice on the situation.. I have proof that they wrote this debt off as a chargeoff in July 2006, it says it on all of my annual credit reports that I have on file. As soon as I made good on this debt in December 2011, they updated the tradeline as follows. They removed the CO mark for 7/06 and changed all of the "not reported" for every month leading up to December 2011 as 180 day late's, and replaced the CO in December. I called and said that they can't do that, since they already wrote the debt off in 2006 and HSBC's response was that they only relayed the info that was paid to the credit bureaus and that is how the bureaus decide to report it....which I think is a load of crap. HELP, this is the only thing killing my credit.

I am as guilty as anyone and I apologize.

Established Contributor
Posts: 513
Registered: ‎01-27-2011
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Re: AMEX Approval Scores

But marine, do I have a gripe here?
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Moderator Emeritus
Posts: 17,409
Registered: ‎07-14-2009
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Re: AMEX Approval Scores


FicoTron wrote:
But marine, do I have a gripe here?

Do you mean a gripe about the TJ or a gripe about your original post?  Smiley Happy

 

Just kidding. I know you mean your initial comments. I have to be honest though that I'm not sure what you need to do. I have no problem telling someone I have no answers for them. I'd much rather plead ignorance (very common for me) than give the wrong advice.

Moderator Emeritus
Posts: 32,865
Registered: ‎08-04-2007
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Re: AMEX Approval Scores


FicoTron wrote:
Thanks guys for debating my situation, and even though this is a semi hijack, I'd appreciate any more advice on the situation.. I have proof that they wrote this debt off as a chargeoff in July 2006, it says it on all of my annual credit reports that I have on file. As soon as I made good on this debt in December 2011, they updated the tradeline as follows. They removed the CO mark for 7/06 and changed all of the "not reported" for every month leading up to December 2011 as 180 day late's, and replaced the CO in December. I called and said that they can't do that, since they already wrote the debt off in 2006 and HSBC's response was that they only relayed the info that was paid to the credit bureaus and that is how the bureaus decide to report it....which I think is a load of crap. HELP, this is the only thing killing my credit.

I didn't read every post, but if you have a CO, they can add lates every single month up to the point you PIF or they sell it. They won't let the debt slide once it goes into CO status. It's still a collectible debt and CO OCs do add lates (and interest).

 

I'd start with the PFDs

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