Changing DOFD?

[bearclaw84]

Hi all,

I am pretty new here and trying to figure things out to fix my previous credit issues to try and get a mortgage while rates and prices are still low!

I have a collection on a personal loan from NFCU that is reporting DOFD as 01/07 but my EQ report shows that I missed payments starting in 05/06 then magically got caught up and then went delinquent again in 2007? It also shows that I was current as of 04/10 but I never made any payment to bring it current. They have since sold it to Cavalry Portfolio. My question is would they change the DOFD to extend the SOL? Is this possible? Any help would be very appreciated!!!!

[bahbahd]

As far as I understand things, only the OC can report a DoFD. The CA cannot report a DoFD or update a DoFD. In-fact, the CA has no monthly payment stipulation to report a delinquency against.

[RobertEG]

Debt collectors are required to report the DOFD.

FCRA 623(a)(5) requires that any party who reports information on an account that has been placed for collection or charged-off must report the DOFD on the OC account to the CRA within 90 days of their reporting. The FTC has successfully brought numerous actions against debt collectors for either failing to report a DOFD, or for inaccurately reporting a DOFD.

There are, for example, many situations where an OC never reported to a CRA, and thus have no requirement under the FCRA to ever report the DOFD.  In that situation, the debt collector must contact the OC and take "reasonable procedures" to obtain the DOFD from them.  FCRA 623(a)(5)(B)(ii),

A DOFD can definately change.  Any time a delinquent account is brought back into a non-delinquent status, the old DOFD becomes irrelevant.

Upon occurence of a new first delinquency, a new DOFD occurs. It becomes fixed in stone when a collection is reported, and that date cannot therafter change.

[bearclaw84]

So when it shows as key derogatory in 05/10 then current in 06/10 then back to key derogatory in 07/10 is this a mistake or are they trying to manipulate the system? I am thinking that the actually DOFD is 05/06 not 01/07 and I am trying to take care of it but don't want to send the wrong letter and have them sue me.

I ask because my state has a 6 year SOL which by my understanding would expire in 1/13 if DOFD is correct as 01/07 but if it was 05/06 then it should already be past the SOL?

[RobertEG]

SOL may or may not be determined by the same date as the DOFD. 

In most states, the statute of limitations is defined based on the date of first "cause of action," which is usually the same as the DOFD.

However, each state has different provisions, with some providing reset based on other actions.  You need to check out the provisions of your state SOL statute.

If you have evidence that the account was never brought back into good standing after the original DOFD and they continue to verify a later DOFD, then you will most likely need to bring civil action for violation of FCRA 623(a)(5) to get the matter before a judge.

[bearclaw84]

Ok so my last question is that I live in a State that has the "first cause of action" law, would I be better off waiting until 01/13 and letting the SOL expire and then attempting to work something out? I am trying to get a mortgage and know that my chances of approval are pretty slim with a large collection on my report. Unfortunately I don't have enough to PIF and or settle so that's why I was thinking the SOL would be a good tool to get the account resolved favorably. Thoughts?

[RobertEG]

It certainly would remove their additional collection tool of getting a judgment on the debt.  You could then send them a cease collection letter, eliminating their ability to contact you.  Their remaining major tool would then be reduced to your aggravation with continued CR inclusion.