HSBC Reporting Changed DOFD or Lack Thereof

[mariemeow77]

Checked my reports on USAA monitoring service and noticed that a chargeoff from HSBC has changed their DOFD. My DOFD should be March 2006 and was reported on all previous credit reports, that I have printed copies of. My credit report actually reads" No Data" for Mar and Apr of 06 under HSBC, so the DOFD is now showing Feb 2007.

It was charged off and LNLV is the CA. I was waiting for this to fall off my report in March, but now that won't be the case.  My question is, what would be the best course of action to fix this? I was waiting for this to fall off my report to offer them a settlement and make this go away forever. I would appreciate any advice you guys can give! Thanks!

[Shogun]

If you have your old CRs indicating the DOFD, you could send that in with a dispute.

[mariemeow77]

Send the dispute to HSBC or to the CRAs? Thanks!

[RobertEG]

In your situation, the creditor was required to have reported the DOFD on their account to the CRA within 90 days of reporting the charge-off, so they were the original source of the reported DOFD.

You state that it has referred to a debt collector.  Has LNLV also reporting their collection?

If so, they were additioally required to report the DOFD on the OC account to the CRA within 90 days of reporting the collection.

If both are appearing in your CR, then it is hard to say who reported the current DOFD showing in your CR.

In view of those circumstances, you dont know who to send a dispute over accuracy of the reporting.

This is one of the rare situations where, if both have reported, I would advise sending the dispute to the CRA rather than using the direct dispute process.

The CRA has access to both reportings, and can reinvestigate the discrepancy.

If the change was reported by the debt collector, that is a blatant violation of FCRA 623(a)(5), which stipulates that if an OC has previously reported the DOFD on their account, the debt collector must report that same date.

[dobirdsmommy]

Robert... So an OC after they charge-off the balance is supposed to have the DOFD 90 days after they internally charge it off? or is it only in this particular situation?

[Daveyclimber]

I am having the same issue with HSBC/LVNV. I defaulted on the account in 2006 by my recollection yet I had no proof. I disputed with all 3 bureaus and they initially came back verified. I disputed again and Ex and Eq verified but TU recently sent a response to my dispute. HSBC and LVNV listed a DOFD in september 2008 which is incorrect, after writting a somewhat lengthy dispute TU must have ended up requesting the actual payment history because the updated report now shows that it did indeed default in 2005. They sent me their version of the updated information which essentially proved that I was right and the account is being reported past the reporting period. I immediately sent another dispute outlining their findings and am currently waiting for a response and a deletion. I think many on HSBC's accounts were altered when they transitioned to Cap One so they could sell their uncollectable accounts for more money. I should be getting a reponse back from TU within the next two weeks and will update my findings. I am grateful for TU jumping through the hoops but why didnt they delete the tradeline when their own findings found that it was reporting past the 7.5 yr period?

[mariemeow77]

Thanks for all the advice!!

Daveyclimber - did you do a dispute online or snail mail? Thanks!

[RobertEG]

FCRA 623(a)(5)(A) requires that any party who reports information regarding a delinquent account that has either been charged-off or referred for collection to report the DOFD on the OC account to the CRA within 90 days after that reporting.  That applies to both creditors and debt collectors.  It was made applicable to both in order to cover the situations where an OC has made no prior reporting.  If they have not reported the charge-off, the provision of course does not apply.  But once they do report, they have 90 days in which to report the DOFD.

It is the way that the FCRA ensures that the CRAs always have a DOFD in their files for any collection or charge-off, which they need in order to calculate the 7 yrs/180 days credit report exclusion  period.

The remainder of section 623(a)(5) goes into detail on how that reporting must be done, all of which are based on getting the date directly or indirectly from the OC.

[Daveyclimber]

Disputed by mail. Get this, TU told me to basically pound sand. Someone updated the payment history on my CR and after pointing out to TU that the CO happened in 2004, they told me that I have to take it up with the furnisher. Also said they verified it and my dispute is frivilous. Lol.

[RobertEG]

If they held the dispute as frivolous or irrelevant, it appears that they did not see sufficient documentation to identity an inaccuracy.

What did you provide to the CRA as support for an asserted inaccuracy?