Collection Account - Date open is newer than Date open

[Anonymous]

I have two collection accounts that are over 4 and 6 years old.  I am not sure if these are affecting my fico score greatly, but they keep changing Date of Major Deliquency to a more recent date. They report Date of Major Deliquency is in 2008 while the Date Open is 2006.  My question is how can the date of major deliquency be newer by 2 years than the date the collection agency open the file?  The older account is removed from my credit file next spring, and the account was closed by OC 6 years ago - but the collection agency reported me in 2006, but my date major deliquency is 2008.  I have never contacted these agencies.

I am pursueing a mortgage at the moment and not sure if these two collection accounts have a major impact on my score?

Another question - I paid off 3 collection accounts and my score dropped? These accounts were < 2 years old and my mortgage banker recommended I pay them off.

[JoeBJay20]

Are you certain they aren't changing the date of last activity (DOLA)?  The CA has no legal ability to change the date of first delinquency, that date is set by the date you first went late and never became current with the OC.  If the CA is truly changing the DOFD, that is a gross violation of federal law.  If you have credit reports showing this, you could file suit against the CA and end up getting the account removed and getting money on top of it. 

[Anonymous]

I am not speaking of DOFD - I am speaking of  DATE MAJOR DELIQUENCY FIRST REPORTED.

Yes I am sure. I have read about CA re-aging accounts.  I am trying to verify if this is what it is meant. I have 3 collection accounts that are keeping my credit score below 600.  I have 8 paid accounts. I have no recent ( <2 yrs lates). I am trying to buy a house and cannot get my score up.  THe only thing I note is that 2 collection agencies keeping renewig my DATE MAJOR DELIQENCY FIRST REPORTED.  One account is with AAC - which I know by many readings is not a very reputablle company.  But this account was from 2003 and is due to be off my record next spring. I have had no activity snce 2003.  No contact, nothing. They placed my account in collections in 2006.  The DATE MAJOR DELIQUENCY FIRST REPORTED was originally 2003 and has creeped up every couple of months now to 2008. 

My original question is I figured this could not be legal, but can a  DATE MAJOR DELIQUENCY FIRST REPORTED be 2 years later than the account was placed for collection? How can the first eliquency date be 2 years later than when they entered it on my CR?

Message Edited by oj1963 on 06-27-2009 08:20 PM

[RobertEG]

I concur, and am amazed that this continues to be a problem.

DOFD is, by definitiion,  the date of first reporting of account delinquency, i.e., your first 30-day late.

Whatever you are refrreing to as a later "major delinquency" has not affect on its drop off date from your CR.

An OC should, under the guidlelines in the CRA repoting manual,  report the DOFD/FCRA Compliance Date to Base Segment, Field 25 of your OC file upon first reporting a delinquency. 

However, some may not.  Since the DOFD only becomes material should the account later be charged off or placed for collection by the OC,  FCRA623(a)(5)(A) was added to the FCRA to speciffically require that they MUST do so within 90 days of doing a CO or a CA. At that time, it is no longer a reproting guideline, it is a requirement of law.

This is to ensure proper compliance with FCRA 605(a)(4) and 605(c), which together require that it must drop from your CR 7 1/2 years from the "date of the commencement of the delinquency which immediately preceded the collection activity."  Both the legislative history of sction 605(c) and numerous FTC opinion letters on this issue clearly state this language means the single, and fixed date of the first delinquency on the OC account, and not further delinquecies or account activity.

You cant become "delinquent" or further "delinquent" on a collection account.  It is not an account with you.

Message Edited by RobertEG on 06-27-2009 08:31 PM

Message Edited by RobertEG on 06-27-2009 08:36 PM

[Anonymous]

Thanks for info and understand.  But does renewing DATE MAJOR DELIQUENCY FIRST REPORTED affect my Fico score by showing the account newer than it is?  What I notice is that Equifax seems to list collection accounts based on age and these two older accounts are on top based on DATE MAJOR DELIQUENCY FIRST REPORTED.

Another question - can collection accounts be placed as INDIVIDUAL ACCOUNTS - or are they suppose to be labeled as COLLECTION ACCOUNTS.  These two collection accounts are listed under my accounts as if they were established accounts that are deliquent,while other collection accounts I had in past were listed under the Collection account area of the CR.

[RobertEG]

The answer to both questions is no.