Charge Off Date to Fall Off Credit

[rebuildingincb]

I have a reposession on my credit. I am looking to refi my home in the next 18-24mos:

Charged Off Repo info:

Date Opened: 6/2006

Date of Last payment: 3/2008

Date of First MAJOR Delinquency: 9/2007

Date of First Delinquency: 4/2007

Account has never been sold and is with OC.

According to what I have read, this should fall off 4/14 right? (DOFD) I am asking because I have never seen the "major" delinquency mentioned.

Another note is my collection fall off dates. I created a spreadsheet with all my credit info (good and bad) so I could set goals, reminders and analyze it easily.

I have 6 collections with dates to fall off as follows:

Medical Collection: CA could not verify, got letter beginning of this month it would be removed.

Utility Bill: 3/14

Med Bill: 3/14

Cell Bill: 6/14

I also have 3 PR's (civil judgements) set to fall off. One in 11/13 and the other 3/14.

If I am reading everything right, my credit shoud be in much better shape 12 months from now with both PR falling off, and 4 of 6 collections being gone, and both of those with $0 balances. How long does it usually take from date it is supposed to fall off for it to actually happen?

[guiness56]

Yes, it will be excluded based on the 4/2007 date.  Date First Major Delinquency Reported is nothing, just when it was reported.

They have to be excluded by those dates or the CRAs face FCRA violations.  Which means you will generally see them gone a few months early.

[RobertEG]

The max exclusion period for a collection or charge-off is 7 yrs plus 180 days from DOFD, not 7 yrs.

The CRAs usually exclude a few months prior to the full 7/180, but they can remain for the full period.

As an aside, credit report exclusion only prevents one reviewing your credit from becoming aware of bad debt by seeing a related collection or charge-off pertaining to the debt upon pullling your credit report.  The delinquent debt still remains

When apping for new credit, they can become aware of its continued presence by other means, such as asking if you have any unpaid, delinquent debt.

That is particularly true on public records, which can be viewed by a simple public records search. 

[rebuildingincb]

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@RobertEG wrote:

The max exclusion period for a collection or charge-off is 7 yrs plus 180 days from DOFD, not 7 yrs.

The CRAs usually exclude a few months prior to the full 7/180, but they can remain for the full period.

As an aside, credit report exclusion only prevents one reviewing your credit from becoming aware of bad debt by seeing a related collection or charge-off pertaining to the debt upon pullling your credit report.  The delinquent debt still remains

When apping for new credit, they can become aware of its continued presence by other means, such as asking if you have any unpaid, delinquent debt.

That is particularly true on public records, which can be viewed by a simple public records search. 

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I wasn't aware of the additional 180 days. Thanks for that.

All collections and PR's will be paid by the time they fall off. All but this reposession that is (which is not in PR). Not sure what I will do about that yet.

[guiness56]

Yes, it is 7.5 years from the DoFD for COs and collections.  Usually the CRAs remove CO'd OC accounts at the 7 year mark and don't include the 6 months.  It can stay for 7.5 years but can be removed  earlier

[RobertEG]

The additional 180 days past the 7 years was provided in the statute to cover the rare but possible scenario where a collection is reported at or near the end of the 7 year period set forth in secion 605(a)(4).

Section 623(a)(5), which governs the reporting of a DOFD to the CRAs, gives credtors and debt collector up to 90 days atter reporting a collection or charge-off to report the DOFD to the CRA. Absent a reported DOFD, the CRA is left with no means to calculate its statutory credit report exclusion date.

The additional 180 days was inserted as a way to assist the CRAs from being in violation when issuing credit reports immediately after a strict 7 year period.

[rebuildingincb]

I have seen other threads where people ask for early removal from CRA's of old accounts, is this something I should consider. To be clear, not saying I want to dispute valid debt, just ask for early removal, similar to a GW to an OC or CA.

[guiness56]

Maybe a few months early they will.  I don't think they would for a year but you could ask.