09-13-2010 08:08 AM - edited 09-13-2010 08:17 AM
Help! I have this acct where the OC has charged off and sold the acct. The OC'S DOFD is 9/2004 with an estimated removal of charge-off by 8/2011 according to cr. They sold the acct some time ago to Harris and Harris, They list the DOFD as 4/2006 with an estimated removal of 4/2013. Now 2 months ago a new CA ( I.C. systems) appeared on my cr reporting on the same acct, They list the DOFD as 7/2010 with an estimated removal of 7/ 2016. Now I have 2 CA'S reporting on the same acct both with a different DOFD. I have not had any contact written or oral nor made any payments to reset the clock on this acct. Am I correct in my understanding that the CA'S have 7 years plus 180 days from the OC'S DOFD to report on this acct, Has this acct been re-aged? Please Help Thanks.
09-13-2010 07:27 PM - edited 09-13-2010 08:41 PM
The DOFD is set by the OC. When the OC-charged off the account or placed it into collection, they were required under FCRA 623(a) to have reported the DOFD on their OC account to the CRA within 90-days after the CO or CA. Any subsequent reporting by the CA does not reset the DOFD reported by the OC.
Reset of a reported DOFD by the CA is clearly illegal. The CRA will be looking at the DOFD reported by the OC when determing its drop-off date from credit reporting after 7 years, with posssible extension of 180-days, from the DOFD on the OC account. That date is set by FCRA 605(c).
Maybe you are confusing later reporting dates of activity on the CA account as a reset of your DOFD. CA account reporting has no ability to reset DOFD reporting done by the OC.
09-13-2010 09:31 PM - edited 09-13-2010 09:36 PM
Here is full summaru of how DOFD reporting to your credit file is regulated by both the FCRA and by the credit reporting guidelines used by the CRAs.
When you have a very first delinquency with the OC, they should (but don't always), in addition to reporting the delinquency to your payment history, also report a totally separate entry into field code 25 of your file with them. That first posts a date of first delinquency (DOFD), and that field code is used by the CRA, should any CO or CA later be posted to your CR, to calculate the 7-year (plus 6-months) deletion of that later reported CO or CA from your credit report.
That date remains in your credit file as the DOFD posted by the OC until such time as the account with the OC is then brought back into paid, good-standing status, and then a new date of first delinquency occurs. Then the OC should (but does not always comply) by updating the prior reported DOFD.
So, hypothically, if the OC then posts a CO or refers the debt for collection, and a debt collector then posts a CA to your CR, then the CRA has a reported date which they can use to calculate deletion of the CO of CA after 7 years from that definative DOFD.
Problems arise in this process recordation of your DOFD.
First, what if the OC never posted to your CR, and all that is there is a collection?
Second, what if the OC previously posted to your CR, but did not, throughout the progress of the account while open, update the DOFD?
The FCRA puts checks on these possibilities, in order to assure an accurate DOFD is in your credit file. That is what FCRA 623(a)(5) is all about.
First, if an OC previously reported to your credit file, they are required under FCRA 623(a)(5)(A) to additionally report, within 90-days of reporting the debt for charge-off or collection, an update of the actual DOFD on their OC account.
FCRA 623(a)(5)(B)(ii) clearly specifies that the updated reporting by the OC MUST be the same DOFD that they previously reported. No re-aging by the OC.
Second, if the OC had not previously reported their account to a CRA, then it gets dicy.
Then, and only then, is the CA relied upon to provide any absent DOFD to the CRA.
Under FCRA 623(a)(5)(B)(iii), the CA acting on behalf of the OC is then required to “follow reasonable procedure to obtain the date the date of delinquency from the creditor….”
Then the CA can report the DOFD, once provided to them by the OC, to the CRA.
The nighmare situation is, if the OC did not previously report to the CRA, and the CA has first taken “reasonable procedures to obtain the date of delinquency from the creditor,” and was unsuccessful in contact with the OC, then, and only then can the CA independently establish and report a DOFD to the CRA. The only stipulation is that, if they independently determine the DOFD to report, it must precede the date it was placed for collection.
09-14-2010 01:54 PM
Thanks for the reply and the info Robert, Much appreciated. this is how it's listed on my equifax cr.
Current Status- Charge-OFF
Date of Last Activity: N/A
Date of First Delinquency: 09/2004
Harris And Harris (First CA)
Date Reported: 01/2007
Date Assigned: 01/2007
Date of First Delinquency: 06/2006
I.C.Systems (Second CA)
Date Reported: 06/2010
Date Assigned: 04/2010
Date of First Delinquency: ) 01/2010
How can there DOFD be over five years past the OC'S DOFD?. Thanks for reply Robert!