FICO and collections scoring

[Miner]

Maybe someone can help me understand how myfico's reports work on collections.

I have a collection from Sprint PCS that 1st went bad and was closed in 2003 and my free credit report show it will fall off in April 2010 which is correct.  The collection agency (Calvary Portfolio - we don't do PFD) bought it and I settled with them in Aug 2006 and then they reported on my credit reports (there was nothing reporting before that, those bastards) in Sept 2006.

Now when I get a fico score report, it says "You have a recent collection that is 2yrs 9months old that is hurting your score."  From reading my credit report, that means that they are using the DATE OPENED (which I assume is when Calvary bought the debt since nothing was reporting back then) which says December 2005.  FICO using this date, doesn't make sense to me.  I can understand using the date that I paid off the debt or when the debt was originally defaulted on.  But why use the date of when the current collection agency bought the debt in determining my scores?  It says on the report when I paid it and, though I don't see it, it's obvious the credit agencies knows when the debt went bad or they wouldn't tell me it will fall of in 2010 (2003+7years).

Now for an observation on the effect on my scores.  I'm currently on a plateau where all my negatives are 3 years or older except this collection issue and there isn't much I can do outside of age or use of GW.  When I use the simulator, the only short term thing that improves my scores is something about keeping my payments current until December (3months) where it says I should see a likely 10 point increase.  Now there is nothing magic about December for any of my accounts except for this collection's DATE OPENED.  This means that when my collection reaches 3 years old (by myfico's wierd date method), it hits another tier and the effect is lessened.  Which is funny since in 16 more months after that, they will say it's 4 years old and yet it will fall off being out of the 7year SOL.

Message Edited by Miner on 09-20-2008 09:18 PM

Message Edited by Miner on 09-20-2008 09:20 PM

Message Edited by Miner on 09-20-2008 09:20 PM

Message Edited by Miner on 09-20-2008 09:22 PM

[Anonymous]

Check to see if you're outside SOL. If you are, I would go for a PFD. That's the cleanest solution. Otherwise, dispute based on incorrectly reported DOFD. The CA has to base that date off when you first were late on the bill, NOT when it purchased the debt.

[RobertEG]

Hi Miner!

The date that the account will fall from your CR has nothing at all to do with when the account was open, closed, went into collection, or when any payments were made on the collection.

The falloff date under the FCRA is 7 years plus six months from the date of the first account delinquency in the last chain of consecutive delinquencies that led to the CA.  That is called the DOFD or FCRA compliance date, and is the only date that governs how long it may still be included in your CR. See section 605(c) of the FCRA.