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Closed HE account shows status Paid as Agreed but late pays in history which will report 10 years.

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Anonymous
Not applicable

Closed HE account shows status Paid as Agreed but late pays in history which will report 10 years.

I have a home equity loan closed in August, 2016 with a zero balance tradeline on my Equifax credit report.  It shows a status of Paid as Agreed which means it will report for 10 years as a positive account.  However, there are many lates in the payment history listed in the tradeline which makes this a negative account, as stated in the beginning of the Equifax report.  In other words, this negative history will stay with me for 10 years instead of 7 years from the date of first delinquency, which shows as N/A because it's a "positive account".  I need to have this account either report on Equifax as Paid as Agreed showing no payment history and a positive account OR a status that would allow me to have the account show my date of 1st delinquency which is 10/2010 and then I can have the tradeline deleted as a negative account.        FCRA 7 year rule 623(a)(5) and 605(c)(1) which sets forth the delinquency method of calculating the obscelescense period.  

 

Any ideas from any members who may have gone through a similar experience.  Thanks in advance.

 

   

Message 1 of 13
12 REPLIES 12
HeavenOhio
Senior Contributor

Re: Closed HE account shows status Paid as Agreed but late pays in history which will report 10 year

Closed accounts will report for "up to 10 years," which means that it's possible they could drop off at any time before that. We've also seen instances where they hang around much longer.

 

However, the baddies will fall off at 7 years, give or take a wee bit. If your last baddie was in 2015, it would fall off in 2022. If the account remains on your report longer, it'll look good at that point.

Message 2 of 13
RobertEG
Legendary Contributor

Re: Closed HE account shows status Paid as Agreed but late pays in history which will report 10 year

The CRAs exclude a chain of delinquencies no later than 7 years from the date of the first delinquency in the chain of any reported monthly delinquencies.  Delinquencies MUST become excluded after no later than 7 years, so they cannot continue to be included for 10 years.

FCRA 605(a)(5).

 

If, at the time the reported monthly delinquency chain is up for exclusion, the debt remains unpaid, then it also, in additon to the reported monthly delinquencies, also still has a current status of delinquency.  Thus, exclusion of only the reported monthly delinquencies under the payment history profile is not sufficient to exclude any reference to the prior delinquency, and the CRA policy is to then remove the entire account as their only means of full compliance with FCRA 605(a)(5).

 

However, at the time the reported monthly delinquency chain is up for exclusion at 7 years, if the debt is paid, the current status no longer makes any reference to delinquency, and thus the CRA will not remove the entire account.  It will remain, absent any reference to the prior delinquencies or current delinquency status, and thus be in good standing.

It will thereafter be subject to the standard CRA housecleaning removal at approx 10 years from date closed.

Message 3 of 13
Anonymous
Not applicable

Re: Closed HE account shows status Paid as Agreed but late pays in history which will report 10 year

An interesting thing that Pentagon Federal CU did after this paid home equity account was closed was Experian notes the payment history for that tradeline showing the months that were flagged late as NR and no indication of late months, where the same months on Equifax show as lates, even though Equifax shows that TL as Paid as Agreed.  This makes the TL a positive account but with a negative payment history, thus not allowing for a date of first delinquency which they show as N/A.  Transunion doesn't show that account at all on the copy TU mailed me but there is a reference on the credit karma version online where TU is used that says you have 18 late pays on 1 account which is that account.  I gather creditors don't see it since it's not on the official TU report.  I have made Penfed aware of this by letter to account resolution see what is going on and to hopefully delete the negative payment history or maybe change the status to paid in full to allow for a date of first delinquency which would be in 2009 and therefore do the 7 year obsolete through Equifax.  I haven't heard back from Penfed as it's been 5 weeks.  Otherwise, this will be on Equifax report for at least 5 more years.  It's not updating monthly but it shows the mortgage lates which will hurt me when I refinance.  Is the an FCRA law for original creditors saying that payment history must be shown on all bureaus the same or be deleted.  Thanks in advance for any advise regarding the above.       

Message 4 of 13
RobertEG
Legendary Contributor

Re: Closed HE account shows status Paid as Agreed but late pays in history which will report 10 year

The creditor is not involved in deletion of any reporting based on credit report exclusion.

The payment history profile that retains the record of prior monthly status history is subject to credit report exclusion the same as the current status, which is done by the CRA, not the creditor.

 

If EQ is continuing to show delinquencies in your payment history profile that within a chain of delinquency that had a first delinquency that is now more than 7 years ago, then the CRA, and not the creditor, is in violation of the credit report exclusion provisions of FCRA 605(a)(5), and your beef is with the CRA.

Stated differently, you would not dispute the accuracy of reporting by the creditor, you would dispute/complain about the lack of CRA compliance with FCRA 605(a).

 

Of course, once a chain of delinquency has become excluded, the date of first delinquency that is of record becomes NA.

Message 5 of 13
Anonymous
Not applicable

Re: Closed HE account shows status Paid as Agreed but late pays in history which will report 10 year

I am looking for guidance in this post for why a creditor can pick and choose what they report when one CRA reports a tradeline as having negative payment history but yet another CRA chooses to not show that negative payment history.   Is their a FCRA regulation against credit data furnishers from reporting to CRA's payments noted history of a tradeline if one bureau shows lates but another shows those same months as NR (Not rated) for those months?  Both show paid as agreed as status but Equifax has it as a negative.  Shouldn't that be enough to get the payment history uniform across all spectrums for uniform reporting.  If they were to either add lates to Experian or delete lates on Equifax, I could then deal with the tradelines with the 7 year rule as I have proof of when the date of first delinquency was from old reports and the creditor's own records, 2009.  I would much rather have the remaining positive years of the 10 years stay for Equifax if it were to change to positive payment history, but to get rid of negative payment history would be my number 1 priority.      

Message 6 of 13
RobertEG
Legendary Contributor

Re: Closed HE account shows status Paid as Agreed but late pays in history which will report 10 year

There is no requirement in the FCRA that mandates any reporting to made to all CRAs or that reporting of payment history profile must be consistent between the CRAs.  The fact, for example, that a 30-late is reported to CRA1 is not basis for requiring its reporting to CRA2,

What is requiremed is that what is reported cannot knowingly be inaccurate.  See FCRA 623(a)(1).

 

There is a possbile legal argument should you wish to assert that reporting of payment history must be consistent with all CRAs, but that argument is not consisent with decades of past practice or CRA policies, and would, in  my opinion, not survive legal challenge.

 

One could build an argument based on FCRA 611(a), which permits a consumer to dispute the accuracy or completeness of information in their files.  It could be asserted that in order to be complete, each and every prior monthly delinquency must be reported the same to each CRA.

 

While that interpretation of the statute may have some merit, statutory intepretation, when vague or broad, looks to how that statute has been interpreted and applied in the past.  If there is a long and consistent history of a given intepretation, the courts will normally defer to that interpretation is unchalleged and commonly applied for a long time.

The CRAs have no procedures that mandate that a creditor must report each and every prior derog to each CRA, and there have been no legal challenges that have established precedential case law that would mandate any such interpretation in any judicial jurisdiction of which I am aware.  To the contrary, consistent practice has been not to mandate any such completeness or consistency between the CRAs.

 

In most cases, consumers do NOT want total consistency, as that would, in most cases, result in an increase in derogs reported to their credit files.  Requiring creditors to report the same, complete info to each CRA is thus something that consumers have not asserted before the courts, primarily because it would not usually be to their benefit.

 

Certain information IS requried to be consistent between CRAs due other requirements of the statute, but payment history profile is not one of those items.  The post mentions DOFD.  If a charge-off or collection is reported, then reporting of DOFD is required to be provided to each CRA to which the CO or collection has been reported.  See FCRA 623(a)(5).  However, no such reporting of DOFD is required if no charge-off or collection has been reported.

 

You could always file a dispute against a given creditor based on their lack of completeness in not reporting the same payment history to each CRA, but for the reasons discussed above, in my opinion, it would not prevail.

 

Message 7 of 13
Anonymous
Not applicable

Re: Closed HE account shows status Paid as Agreed but late pays in history which will report 10 year

Thank you so very much RobertEG!!!  That information is what I was looking for in addition to your other input on this thread.  I will think about my next move, if any, now and I feel I can now give an informative argument to try and work out something with Penfed.  Your answer made me think even if I don't do anything about the tradeline that I know what will be involved if I do.  Your advice is invaluable to this site and you can detect respect that others have in you through your written advice. 

Message 8 of 13
Anonymous
Not applicable

Re: Closed HE account shows status Paid as Agreed but late pays in history which will report 10 year

I'm still trying to get payment history excluded on this closed paid as agreed home equity line of credit on TL for Penfed which is the original creditor.  It never went to outside collections or charged off.   I talked with Equifax last week and the supervisor was telling me I had to wait for each individual monthly delinquency to go 7 years before falling off payment history.  In the meantime, I found an old Equifax credit report from 2012 which showed even earlier late pays than my current Equifax report shows, commencing with a 30 day late in August, 2010; 30 day late September, 2010; 60 day October, 2010; 60 day November, 2010.  Then it was brought current for December, 2010.  Is this what a common chain of delinquency would be classified as under 605 (a) and would removal of all negative payment history months be excluded in this situation?  I went through alot of posts, including all of Robert's in 2018 and it still seems the consensus is Equifax doesn't really go by what is my understanding of the FCRA Exclusion Provision for account delinquencies.    

Message 9 of 13
iv
Valued Contributor

Re: Closed HE account shows status Paid as Agreed but late pays in history which will report 10 year


@Anonymous wrote:

I'm still trying to get payment history excluded on this closed paid as agreed home equity line of credit on TL for Penfed which is the original creditor.  It never went to outside collections or charged off.   I talked with Equifax last week and the supervisor was telling me I had to wait for each individual monthly delinquency to go 7 years before falling off payment history.  In the meantime, I found an old Equifax credit report from 2012 which showed even earlier late pays than my current Equifax report shows, commencing with a 30 day late in August, 2010; 30 day late September, 2010; 60 day October, 2010; 60 day November, 2010.  Then it was brought current for December, 2010.  Is this what a common chain of delinquency would be classified as under 605 (a) and would removal of all negative payment history months be excluded in this situation?  I went through alot of posts, including all of Robert's in 2018 and it still seems the consensus is Equifax doesn't really go by what is my understanding of the FCRA Exclusion Provision for account delinquencies.    


The 8/2010 through 11/2010 late payments might have been considered as a group, yes... but would have already fallen off by now either way.

 

Since you brought the account current in 12/2010, though, that earlier string of lates would have no impact on the removal times of any more recent late payments.

EQ8:850 TU8:850 EX8:850
EQ9:847 TU9:847 EX9:839
EQ5:797 TU4:807 EX2:813 - 2021-06-06
Message 10 of 13
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