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Are Late Payments mandated to be removed along WITH Chargeoff statuses on same account?

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badassmonkey11
Valued Member

Are Late Payments mandated to be removed along WITH Chargeoff statuses on same account?

When an account is charged-off and the status is "hidden" on your credit report(s) 7.5 years after date of first delinquency, are the late payments mandated to be "hidden" as well?

 

I have 3 charge-offs and my late payments statuses were updated to when I made the final payment. All accounts are due to "fall off" my credit reports in 2014. Do the late payments go with them so that when lenders see my credit file they will not see late payments nor the charge-off connotation?

Message 1 of 10
9 REPLIES 9
guiness56
Epic Contributor

Re: Are Late Payments mandated to be removed along WITH Chargeoff statuses on same account?

The CRAs are required to exclude the CO status, nothing else.  It is up to the creditor to exclude the entire TL or not.

Message 2 of 10
RobertEG
Legendary Contributor

Re: Are Late Payments mandated to be removed along WITH Chargeoff statuses on same account?

Delinquencies are excluded after 7 years from their dates of occurence.  Totally separate periods from that of any reported CO.

 

In almost all situations, any delinquency that preceded a subsequent charge-off would reach 7 years of age prior to 7 yrs plus 180 days from date of first delinquency, which is the exclusion date for a reported CO..

That would encompass delinquencies up to approx 180 days after the first.  It is rare for delinquencies to continue to be reported that have a date of reported occurence more that 180 days after DOFD.  Possible, but not likely, and they would also soon be excluded.

 

 

Message 3 of 10
badassmonkey11
Valued Member

Re: Are Late Payments mandated to be removed along WITH Chargeoff statuses on same account?

I just have a hard time making sense of it because until I made the final payments where they were paid in full each subsequent month the accounts were reported as late. One account has it listed as late for 51 straight months (at month 6 it was charged-ff). So it is possible that negative marks from this account could stay 14 years after date of first delinquency? Is that what you are saying?

Message 4 of 10
guiness56
Epic Contributor

Re: Are Late Payments mandated to be removed along WITH Chargeoff statuses on same account?

Message 5 of 10
badassmonkey11
Valued Member

Re: Are Late Payments mandated to be removed along WITH Chargeoff statuses on same account?

See this is where it is confusing.

 

Because the accounts were charge-offs they were reported every month as being late, delinquent and derogatory until I paid them off in full. Even though they were charged-off and closed (profit and loss write-off) in 2007 they were still reports as L, D and D. They have all since been paid in full as i had no choice but to do payment plans. I intended and did pay back every penny, but did not have upfront money to do it then.

 

So, technically i was late each of those months because i still had a balance. BUT if the charge-off notation has to be removed in 2014 I would think the late statuses would too since they are the same account(s)?

Message 6 of 10
guiness56
Epic Contributor

Re: Are Late Payments mandated to be removed along WITH Chargeoff statuses on same account?

Got it.  Yes, they can report the late payments monthly until the debt is paid.

 

Yes, every thing will be excluded when the CO is excluded.

Message 7 of 10
badassmonkey11
Valued Member

Re: Are Late Payments mandated to be removed along WITH Chargeoff statuses on same account?

Ok thank you that is what I was thinking, but credit is so tricky!

 

I would imagine the time you have to wait up to 7 years for a late payment to "fall off" would be when an account is still open and/or in good standing.

Message 8 of 10
guiness56
Epic Contributor

Re: Are Late Payments mandated to be removed along WITH Chargeoff statuses on same account?

Any account that has a late payment is not in good standing.  It may be pays as agrees but a late payment is derogatory and makes the account adverse.

 

Even on closed accounts, the lates will still be removed 7 years from each occurence. 

The difference is the account has not been COd or sent to collections. These accounts have DoFDs whereas an account with just late payments do not.

Message 9 of 10
badassmonkey11
Valued Member

Re: Are Late Payments mandated to be removed along WITH Chargeoff statuses on same account?

That makes perfect sense. Thank you for your help!

Message 10 of 10
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