Credit reporting period 7 years or 7.5 years from DOFD?

[KnewBee]

Hello, I have a collection where the last payment on the account was for February 2008 and the date of first deliquency is March 2008. The account was not actually placed in collections until December 2009. (This was an HOA account) 

My credit reports are showing the approximate date the collection will be removed is November 2016 so it appears the collection agency has reported the date of first deliquency as the date the account went into collections not the actual DOFD which will add about a year and half to the reporting period for this. 

I sent a debt validation letter to the collection agency  and they did respond with a payment history for the account which does show the last payment made on the account was Febuary 2008 and that no other monthly payments were ever received after that. 

Seems like I should be able to write them now and ask them to correct the DOFD to March 2008 on my reports, but If they made this correction (I'm guessing they will as their own DV letter confirms)  I was not clear if the item will age off March of this year or September of this year?  The reason I was concerned about the 6 months is planning to move shortly. 

Would anyone happen to know? Thank you. 

[gdale6]

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@KnewBee wrote:

Hello, I have a collection where the last payment on the account was for February 2008 and the date of first deliquency is March 2008. The account was not actually placed in collections until December 2009. (This was an HOA account) 

My credit reports are showing the approximate date the collection will be removed is November 2016 so it appears the collection agency has reported the date of first deliquency as the date the account went into collections not the actual DOFD which will add about a year and half to the reporting period for this. 

I sent a debt validation letter to the collection agency  and they did respond with a payment history for the account which does show the last payment made on the account was Febuary 2008 and that no other monthly payments were ever received after that. 

Seems like I should be able to write them now and ask them to correct the DOFD to March 2008 on my reports, but If they made this correction (I'm guessing they will as their own DV letter confirms)  I was not clear if the item will age off March of this year or September of this year?  The reason I was concerned about the 6 months is planning to move shortly. 

Would anyone happen to know? Thank you. 

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CRAs will typically let it go at 7 year mark to be sure they stay within the law. If you have proof the DoFD is in 2008 then I would immediately send them a letter demanding that the DoFD they are reporting be corrected or you will file a CFPB complaint. This is reaging and its against the law. The DoFD is prob 04/08 as that would be the 30 day late month if you last made a payment in Feb 08.

[KnewBee]

Thanks so much for the response! 

I am going to fire out that dispute letter this weekend! 

[Imperfectfuture]

Good luck, glad gdale could help.

[RobertEG]

I would urge caution in asserting illegal/improper reaging by a debt collector, particularly when you dont know the procedure used by the debt collector to obtain the reported DOFD.

A DOFD does not occur under the watch of a debt collector, it occurs under the OC account. 

Debt collectors are required to obtain and report the DOFD on the OC account to the CRA within 90 days after reporting their collection.

Their reported DOFD is always second-hand, and they cannot independently assure its accuracy.

To this end, FCRA 623(a)(5) sets forth the procedure that, if followed by a party, is considered adequate in obtaining and reporting the DOFD.

Step one is that if the OC has ever reported an DOFD (which would have been required had they previously reported a charge-off), the debt collector can presume that DOFD is accurate, and report that same date.

Steps two and three are for situations where there is no reporting of DOFD by the creditor, and thus the debt collector is instructed to contact the OC and attempt to obrain the DOFD from them.  If the OC provides them a date, they are in compliance if they report that date to the CRA.

If they cannot obtain the DOFD from the OC, then they can make their best estimate, but in no case should report a DOFD that is later than the date they obtained collectin authority.

As can be seen from the process,the consumer is not aware of the procedure followed by the debt collector, and thus cannot assert violation of their reporting of DOFD without knowing what steps they took.

If you contest a reported DOFD, the first step is to dispute its accuracy by providing your own independent evidence, such as actual prior billing records, that show an inaccuracy in the reported DOFD.  It may well also come out that the debt collector did not follow the required procedure, but that ould most likely be reserved for showing by civil action,and not presumption based on a date that may be inaccurate.

[KnewBee]

Thank you Robert, 

They actually sent me the complete billing and payment history in response to my DV letter and their own billing records (which match mine) show they are using an incorrect DOFD.

I do think this was an honest error on their part as the OC is a homeowners association so an HOA account is normally not reported (as a credit card would be)  on credit unless it goes into collections. Im guessing this is why DOFD didnt transfer smoothly. 

I actually already typed up a short, polite letter to the debt collector that to summarize basically says "Per the billing history you sent me, the DOFD is not being reported correctly as my credit reports show the collection aging off 9 years after my account first became delinquent. Please update the correct date of first delinquency per your billing history so that this account ages off of my credit at the correct time."

As evidence I included the billing history they sent me and highlited the last payment I ever made on 2-2008 and then the late fee for the 3-2008 bill due without any other payments ever being made to the account. 

I was planning on sending this letter to the collection agency Saturday or Monday, does it sound appropriate for the situation? I am hoping this one letter will resolve once and for all. 

Thanks

[gdale6]

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@KnewBee wrote:

Thank you Robert, 

They actually sent me the complete billing and payment history in response to my DV letter and their own billing records (which match mine) show they are using an incorrect DOFD.

I do think this was an honest error on their part as the OC is a homeowners association so an HOA account is normally not reported (as a credit card would be)  on credit unless it goes into collections. Im guessing this is why DOFD didnt transfer smoothly. 

I actually already typed up a short, polite letter to the debt collector that to summarize basically says "Per the billing history you sent me, the DOFD is not being reported correctly as my credit reports show the collection aging off 9 years after my account first became delinquent. Please update the correct date of first delinquency per your billing history so that this account ages off of my credit at the correct time."

As evidence I included the billing history they sent me and highlited the last payment I ever made on 2-2008 and then the late fee for the 3-2008 bill due without any other payments ever being made to the account. 

I was planning on sending this letter to the collection agency Saturday or Monday, does it sound appropriate for the situation? I am hoping this one letter will resolve once and for all. 

Thanks

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Looks good to me.