Need help understanding DOFD

[Shogun]

+1  They must respond to the DD or remove the TL.

[greatestthees]

Thank you for the answers. I will go ahead and file a complain with CFPB.

[RobertEG]

As for the issue of the DOFD, here is my take...

The FCRA, in sections 605(c) and 623(a)(5) defines what is commonly referred to as DOFD as the date of commencement of delinquency on the acount that immediately preceded their charge-off.  That is the date of the first delinquency that occured after which the account remained in a delinquency status until they chose to take the CO.

If the account became delinquent in 9/2006, and thereafter was not brought back into good standing before they did the CO in 2008, that remains as the DOFD.

Payments made in the intermim would not affect the DOFD unless at some point a payment brought the account back into good standing. 

The chain of reported delinquencies extends from 9/2006 to 1/2008, implying the account remainded delinquent during that period.

The reporting of a 180 late in 1/2008, is followed by their reporting of a 180 late in 10/2008, with a CO on that date.

It is possible, if the account was brought back into good-standing after 1/2008, with a new chain of delinquencies beginning sometime after 1/2008, that the reported 180 late in 10/2008 could have been based on a new first delinquency after 1/2008, with more than 180 days then passing for the reporting of a new 180 late in 10/2008.

Thus, it is theorectically possible that the DOFD could be sometime betwen 1/2008 and 4/2008, IF you brought the account back into good-standing during that period.

If you did not make payments in that period that brought the account back ito good standing, the DOFD would have remained 9/2006.  Your own account records should establish whether you did so, and thus fix the DOFD.

If you are still with me......regardless of the above,  the reporting of a DOFD that is the same month as they reporting being 180 late and that they also  did the charge-off is not possible, and supports your assertion of reporting an improper DOFD on its face.  The reported date of first delinquency must have preceded the date of their charge-off, per the defintion of DOFD provided under FCRA 623(a)(5)

So their reporting is clearly inaccurate, regardless of whether the 9/2006 date of prior first delinuency continued to stand as the DOFD.  That fact alone would be basis for supporting inaccuracy in their reporting.

I am not surprised that they are having problem verifying the accuracy of the reported DOFD of 10/2008.  I dont see how they can.

Regardless, they are required to respond to your direct dispute within 30 days, and if they cannot verify the accuracy of that date, they must either update its accuracy or delete the inaccurate information.

However, that rasies a dilemma.  The direct dispute was over the accuracy of the reported DOFD.  If the DOFD were to be deleted, that would leave the CRA wihout any DOFD upon which to calculate the exclusion  of the charge-off. 

That cannot happen.  FCRA 623(a)(5) requires that the OC report a DOFD no later than 90 days after they reported the CO in order to ensure that the CRA has that needed information  If they delete DOFD, they are in violation of section 623(a)(5).  So their only alternative is to delete the CO, which then removes any necessity to report a DOFD.  Thus, if they cannot verify the accuracy of the currently reported DOFD, resolution of any dispute would, in my opinion, mandate deletion of the CO itself.

I would file a formal complaint with the CFPB for their clear violation of the response period mandated for your direct dispute under FCRA 623(a)(8), and ask for resolution of the dispute as requring deletion of the reported CO,  unless they provide an accurate DOFD.

[greatestthees]

Thank you for great explanation RobertEG.

[greatestthees]

So, i finally got the following letter from Bank of America via CFPB.

---

On November 14, 2013, we received correspondence forwarded to our offices by the Consumer Financial Protection Bureau, I appreciate the opportunity to research this matter and respond on behalf of the bank.

We have reviewed your accounts and identified the following information. Your account ending in xxxx was opened September 13, 2004. The last payment received and posted to your account was on February 29, 2008 in the amount of $$$$. Additional fees and interest charges were assessed in accordance with the terms of your account that were in effect at that time.

Due to non-payment, the account ending in xxxx was charged off as a loss to the bank on oct 31, 2008, in the amount of $$$. When an account charges off as a loss to the bank, a new account number is generated for the purpose of reporting. The account was subsequently sold to Midland Credit Management, a collection agency. Since Bank of America no longer owns or services this account, you must contact Midland Credit Management directly.

On September 4, 2013 we received correspondence related to your account. Our records indicate that a validation of debt letter was mailed to you on September 25, 2013. We have no record indicating that the letter was returned by the US postal service. I regret to hear that you may not have received this correspondence.

In your correspondence, you mentioned that your credit report shows that the account had a First Day of Delinquency of October 2008; however, you had prior delinquency in 2006. Bank of America reports a First Day of Delinquency to show the date when consecutive delinquency started leading to charge off. We have confirmed that the Date of First Delinquency should be reflected as May 2008. An updated has been submitted to each of the following national credit reporting agencies to ensure that the correct First Date of Delinquency is being reflected.

Federal law requires Bank of America to report a fair and accurate payment history. Therefore, I am unable to comply with your request to remove the account from your credit file.

I regret that we are unable to provide you with any additional information regarding the account since we no longer own or service the account. Please contact Midland Credit Management. 

---

They also sent me statements and looking at it, my account was delinquent and i remember talking with some lady to pay on the account. Looks like i started paying a small amount from 02/2007 and paid it till 04/2008. Then i lost my job and stopped paying again. 

My account was over the credit limit the whole time. Since I made payment for that period of time, does it means my account was brought current? Does this mean DoFD is correct now? 

[greatestthees]

I made about 100 dollars a month payment. i dont know if that matter or not.

[DaBears]

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@greatestthees wrote:

So, i finally got the following letter from Bank of America via CFPB.

---

On November 14, 2013, we received correspondence forwarded to our offices by the Consumer Financial Protection Bureau, I appreciate the opportunity to research this matter and respond on behalf of the bank.

We have reviewed your accounts and identified the following information. Your account ending in xxxx was opened September 13, 2004. The last payment received and posted to your account was on February 29, 2008 in the amount of $$$$. Additional fees and interest charges were assessed in accordance with the terms of your account that were in effect at that time.

Due to non-payment, the account ending in xxxx was charged off as a loss to the bank on oct 31, 2008, in the amount of $$$. When an account charges off as a loss to the bank, a new account number is generated for the purpose of reporting. The account was subsequently sold to Midland Credit Management, a collection agency. Since Bank of America no longer owns or services this account, you must contact Midland Credit Management directly.

On September 4, 2013 we received correspondence related to your account. Our records indicate that a validation of debt letter was mailed to you on September 25, 2013. We have no record indicating that the letter was returned by the US postal service. I regret to hear that you may not have received this correspondence.

In your correspondence, you mentioned that your credit report shows that the account had a First Day of Delinquency of October 2008; however, you had prior delinquency in 2006. Bank of America reports a First Day of Delinquency to show the date when consecutive delinquency started leading to charge off. We have confirmed that the Date of First Delinquency should be reflected as May 2008. An updated has been submitted to each of the following national credit reporting agencies to ensure that the correct First Date of Delinquency is being reflected.

Federal law requires Bank of America to report a fair and accurate payment history. Therefore, I am unable to comply with your request to remove the account from your credit file.

I regret that we are unable to provide you with any additional information regarding the account since we no longer own or service the account. Please contact Midland Credit Management. 

---

They also sent me statements and looking at it, my account was delinquent and i remember talking with some lady to pay on the account. Looks like i started paying a small amount from 02/2007 and paid it till 04/2008. Then i lost my job and stopped paying again. 

My account was over the credit limit the whole time. Since I made payment for that period of time, does it means my account was brought current? Does this mean DoFD is correct now? 

---

They are completely wrong about that. The account that was charged-off is the account that is suppose to be reporting. I sent someone from here to my attorney for the same issue with BOA. BOA lost in court.

By you making payment again on the account and fell behind again will cause the DoFD to change.  

[greatestthees]

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@DaBears wrote:

---

@greatestthees wrote:

So, i finally got the following letter from Bank of America via CFPB.

---

On November 14, 2013, we received correspondence forwarded to our offices by the Consumer Financial Protection Bureau, I appreciate the opportunity to research this matter and respond on behalf of the bank.

We have reviewed your accounts and identified the following information. Your account ending in xxxx was opened September 13, 2004. The last payment received and posted to your account was on February 29, 2008 in the amount of $$$$. Additional fees and interest charges were assessed in accordance with the terms of your account that were in effect at that time.

Due to non-payment, the account ending in xxxx was charged off as a loss to the bank on oct 31, 2008, in the amount of $$$. When an account charges off as a loss to the bank, a new account number is generated for the purpose of reporting. The account was subsequently sold to Midland Credit Management, a collection agency. Since Bank of America no longer owns or services this account, you must contact Midland Credit Management directly.

On September 4, 2013 we received correspondence related to your account. Our records indicate that a validation of debt letter was mailed to you on September 25, 2013. We have no record indicating that the letter was returned by the US postal service. I regret to hear that you may not have received this correspondence.

In your correspondence, you mentioned that your credit report shows that the account had a First Day of Delinquency of October 2008; however, you had prior delinquency in 2006. Bank of America reports a First Day of Delinquency to show the date when consecutive delinquency started leading to charge off. We have confirmed that the Date of First Delinquency should be reflected as May 2008. An updated has been submitted to each of the following national credit reporting agencies to ensure that the correct First Date of Delinquency is being reflected.

Federal law requires Bank of America to report a fair and accurate payment history. Therefore, I am unable to comply with your request to remove the account from your credit file.

I regret that we are unable to provide you with any additional information regarding the account since we no longer own or service the account. Please contact Midland Credit Management. 

---

They also sent me statements and looking at it, my account was delinquent and i remember talking with some lady to pay on the account. Looks like i started paying a small amount from 02/2007 and paid it till 04/2008. Then i lost my job and stopped paying again. 

My account was over the credit limit the whole time. Since I made payment for that period of time, does it means my account was brought current? Does this mean DoFD is correct now? 

---

They are completely wrong about that. The account that was charged-off is the account that is suppose to be reporting. I sent someone from here to my attorney for the same issue with BOA. BOA lost in court.

By you making payment again on the account and fell behind again will cause the DoFD to change.  

---

Thats what i thought. They did changed my DoFD from oct 2008 to may 2008, so its gonna come off my credit report 5 months earlier. Thank you for the reply