NYS Exclusion and Experian

[Rain77]

I have a CO w/ HSBC that was sold to another lender.  I paid the amount in full.  I disputed the acct w/ EX citing NYS FCRA exclusion.  Results came in as update.  I called and EX says it will remain for 7 yrs because I paid a 3rd party and not the OC.  How is this different from paying any CO to a CA.  Aren't CO's typically paid to a 3rd party?  They did say if it was a paid collection account, it would drop off in 5 yrs.  TU excluded the account in April, and however HSBC updated to EQ it's listed as paid as agreed and listed with my positive accounts.  DoFD 4/2008, EX only lists the CO date 12/2008 and no other account history.  Any ideas on how I can get this off EX? Thanks

[RobertEG]

Differing interpretations of the NYS version of earlier excludion of COs and collections remain a continuing issue.

The original verison of the FCRA, as well as the current NYS version, reference date of exlcusion based on the ambiguous reference to placed for collection or charged-off.

The federal FCRA was amended over 15 years ago to clarify that confusion by specifying the date of running of the 7 year exclusion period as beginning 180 days after the DOFD on the OC account.

However, the NYS version does not include that specific provision, leaving it subject to the very same issues of interpretation that congress addressed when amending the fed FCRA.

Two of the three CRAs have taken the reaonable approach that consistency in application leads to their use of DOFD, not any other date.

It will most likely take legal action to force EX to follow that interpretation.  As of now, their interpretation has not been overulled by the courts.

[Rain77]

RobertEG, Thanks  - I knew I'd have a tough time with them.  I am going to send a MOV on the "updated" all they did was put in N/A in a couple fields and called it update.  But my issue is that the rep is claiming since I didn't pay the CO directly to the OC, this is why it will remain.  As stated above she said if I paid a CA then it would be removed.  HUNH??? That makes no sense to me.  The debt was sold to a CA. 

ETA: I noticed that the TL does not say paid, just purchased by another lender notation $0 balance.  Could this be why I am being told 7yrs vs. 5yrs?  My TU report did show Paid CO, sold, before it was excluded.