Dispute 5 yr statute! Updated! What is my next step?

[m29]

Hi all, I have a collection account, OC Ginny's! Was placed for collection 1/07 the OC reporting fell off on time from TU and EQ after 5 yrs due to the 5 yr statute for NYS. The collection account from Merchants Credit guide was never showing on TU or EQ. On EX it never showed the OC just the CA! I disputed with EX and noted the 5 yr statute for NYS but the result of the dispute just updated the account!

Just want to note that the FULL amount was paid to the CA!! How do I proceed? Do I file a complaint with AG, BBB?!! Not sure what to do at this point!! Any help would be appreciated!! Thanks in advance!!

[RobertEG]

Was the debt paid within the five year period, or after?

[m29]

I believe it was paid in 2007, not sure what month!! I have heard so many different things regarding EX and the 5 yr rule!! Like they go by the actual date it went to collection or when it was paid or if it was paid in full!! This is soooo frustrating! I had a Midland collection paid and it was automatically removed from TU and EQ but not from EX (I assume because it was a settled for less situation)!! I wish that the statute was more clear for all CRA!! Just not sure what my next step should be!

[RobertEG]

The federal FCRA had the same problem when originally enacted.  Section 605(a)(4) stated, and still states, that the 7 year period is based on the date "placed for collection."  Debt collectors, using the language of the statute, could report, or a new debt collector could report, a collection, and thus extend the exclusion period based on the date of collection.

Congress clarified this practice in 1998 by amending the FCRA with the addition of new section 605(c), clearly stating that the 7 year period begins with the DOFD plus 180 days.  There is no remaining ambigutity within the courts over the period of exclusion of a collection under the federal FCRA,

The NYS statute has no such revision, and thus is susceptible to the old interpretation.  Apparently, EX is the only CRA holding to that interpretation.

It will most likely take civil action against them in NYS to resolve the matter.

[m29]

Thanks for the reply Robert!! So what you are saying is that they don't legally have to remove after 5 years but can wait the full 7 plus 180 days? So really there is nothing I can do about this?  

[m29]

OK just wanted to add, DOLA on OC was 1/07 and the date opened on the CA was 5/07! Last date reported on CA was 10/09, not sure what if anything this helps my situation!!

[RobertEG]

I am not opining on what is legal... that is up to the courts.  Just that you may have to resort to the courts for that determination.

I dont think the issue is one of waiting 7 years + 180 days under the fed FDCPA, as you apparently qualify for the NYS 5 year exclusion.

It appears the issue is when the NYS 5 year period begins..... with DOFD or date of collection.