11-16-2012 12:21 PM
I'm at 6 1/2 years on one of my collections. It's out of the FL SOL. My question is, if I just settle with them so I can get it cleared up, will that reset the DOFD? Will the collection remain on my report for 7 years from the date of my settling? LVNV won't do a PFD but I do want to just clear up the debt while I have the money.
11-16-2012 12:31 PM
The Charge Off was originally from Chase. Chase removed it via Goodwill Letter from all 3 agencies. The only thing left referencing this Chase account is the LVNV Collection on my reports
11-16-2012 12:33 PM - edited 11-16-2012 12:41 PM
DOFD is not determined, in any way, by actions on a collection or by a debt collector.
DOFD is based entirely on your account activity with the creditor. Period.
In reporting a DOFD to a CRA, a debt collector must follow the provisions of FCRA 623(a)(5), which is there to define what proper DOFD reporting is, and thus to determine if improper reporting of a DOFD has occured.
All of the provisions of section 623(a)(5) recognize that the actual DOFD, having occured under the creditor account, is usually not first-hand knowledge of any debt collector.
It defines various provisions for their obtaining the DOFD, either by use of the prior reporting of DOFD by the creditor themselves, or if the creditor did not previously report a DOFD, provision that they attempt to contact the creditor and get the DOFD directly from them.
If the reported DOFD accurately reflects the date of your first delinquency with the creditor, after which you did not bring the account back into good-standing, that date and that date alone governs credit report exclusion of the collection. FCRA 605(a)(4) as clarified by section 605(c) and 623(a)(5).
The only purpose of DOFD as it relates to credit reporting is that it is necessary in order for the CRA to determine the CR exclusion period of a collection or charge=off.
If misreported, the CRA will not have the accurate date for ultimate CR exclusion. Your bible for determining accuracy of DOFD reporting is section 623(a)(5).
11-16-2012 12:35 PM
Is this a charge off?
If its with a collection agency of any sorts either by them buying the debt or them just collecting the debt the origional debt's DOFD is what it is.
It does not change no matter if you pay it or not.
If you settle they will consider the whole debt satisfied and all collections will cease.
That does not change DOFD at all. If they didn't consider the matter satisfied and you make a payment it still doesn't change the DOFD, it would only restart the SOL clock, however when you agree to settle they don't consider it a payment, they consider it settled (duh).
11-16-2012 01:36 PM
So just for further confirmation. If I settle this collection at 6 years, 11 months - the orignal Charge Off Record AND the Collection Record on my reports will be removed once it hits the 7 year and 180 day mark from DOFD. Correct?
11-16-2012 02:09 PM
You are correct. It will still fall off at the same time due to the DOFD. Paying LVNV will not change anything in that manner. But if you do pay, start the GW process after it's done.
11-19-2012 05:48 AM
If you pay them - don't pay in full. At this point it would just be pointless unless you NEED to buy a house or you NEED to buy a car and will need them off your reports NOW.
I don't suggest NOT paying them either. Zombie debts have become more and more prelevent with this economy and junk debt buyers are attacking more and more. Sure you don't have to pay them but once they put something on your reports its guilty until proven innocent; and they always seem to know JUST when your about to app for a mortgage or something.
I always suggest paying to settle the debt no matter what. Since its out of SOL and within a year of coming off your reports, you could get away pretty cheap with a settlement as long as you reference those two points and make it look like your doing THEM a favor by paying, not the other way around. This way no one down the line can ever buy this debt and try to collect on it. Starting at something like 5-10% of whats owed usually gets you a good deal if its beyond SOL and nearing the CRTP deadline. Look at it as a means of making things right (karma) now in return for never seeing/hearing of it again.