Briefly, the history is as follows.
The NYS version of exclusion of collections and charge-offs parallels that of the original language of FCRA 605(a)(4), ambiguously defining the 7 year period as running from the date the account was "placed for collection or charged to profit and loss." To clarify this matter, congress amended the FCRA by adding new section 605(c) back in the 90's, further defined the period as "beginning on the date of commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, of similar action.' The legislative history makes it clear that this defines a single, date-certain, which is the commencement (first) of delinquencies in the chain of delinquencies which immediately preceded the collection or charge-off.
The prior abiguity in the FCRA is thus still technically present in the NYS code, which makes no mention of use of DOFD.
The fact that use of DOFD would not per se be inconsistent with the old language of FCRA 605(a)(4) is evident by the way the FCRA was actually amended. The prior, ambiguous section 605(a)(4) was not deleted, new section 605(c) was added. Thus, by retaining old section 605(a)(4), it provides one the opportunity to argue that use of DOFD is not inconsistent with the old language, including that of the NYS statute.
EXP made the old school interpretation until a few years ago, but has apparently resurrected that old interpretation.
To obtain a binding interpretation would require litigation, and thus development of binding case law precedent.
To date, I am not aware of any case law from the NYS appellate courts that clarifies the interpretation.
A copy of the code:
New York State General Business Law Section 380-j
“(f)(1) Except as authorized under paragraph two of this subdivision, no consumer reporting agency may make any consumer report containing any of the following items of information.
(i) bankruptcies which, from date of adjudication of the most recent bankruptcy, antedate the report by more than fourteen years;
(ii) judgements which, from date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period; or judgments which, from date of entry, having been satisfied within a five year period from such entry date, shall be removed from the report five years after such entry date;
(iii) paid tax liens which, from date of payment, antedate the report by more than seven years or, a paid, satisfied or vacated tax lien involving a purchaser, transferee or assignee in a bulk sale transaction who has been deemed liable by the state tax commission for sales taxes due from a seller, transferrer or assignor under subdivision (c) of section eleven hundred forty-one of the tax law, where the receipt by a credit reporting agency from such purchaser, transferee or assignee of a notice, or true copy thereof, from the state tax commission to such purchaser, transferee or assignee that his liability has been wholly paid or satisfied or no longer exists, antedates the report by more than thirty days;
(iv) accounts placed for collection or charged to profit and loss which antedate the report by more than seven years; or accounts placed for collection or charged to profit and loss, which have been paid and which antedate the report by more than five years; “
