Community Leader
Epic Contributor
Posts: 26,024
Registered: ‎03-19-2007
[ Edited ]


The only relevance of DOFD is with respect to the CRA calculation of the exclusion date of either a charge-off or a collection.

If any type of ongoing agreement or order permits continued billing, then the billing due date establishes a date upon which, 30-days thereafter, a delinquency can be reported.


It is quite possible that the reported collection could pass its credit report exclusion period of 7 yrs + 180 days from DOFD, and yet other reported monthly delinquencies could still exist.  Collection thus gone, but delinquencies remaining.


That is not the case with most consumer accounts, as the creditor usually attempts to collect delinquent debt by way of collection activities, either internal or external, rather than continuing to bill monthly and pursue via escalating monthly delinquencies.  A primary reason for a collection referral is to rid themselves of the monthly chore of what appears to have become fruitless billing. 


Additionally, most agreements entered into between a creditor and a debt collector stipulate that any future collection activities be conducted thru the debt collector.  Since a debt collector cannot bill you themselves, as you have no agreement with them, reporting of delinquencies almost always ceases upon collection referral.  However, if the judgment creditor chooses to continue to bill, and thus accrue additional delinquencies, they could, as stated, keep it on your CR for years.  DOFD is meaningless as to the exclusion date of those delinquencies.