topic Re: "Early Exclusion" vs. Dispute in General Credit Topics

"Early Exclusion" vs. Dispute

Anonymous — Fri, 13 Apr 2018 15:24:31 GMT

Hi Everyone,

I'm looking for some general information or links to other threads regarding the difference between an "Early Exclusion" and disputing something on your credit report?

For some context, I've started taking care of my credit and am beginning to build more with my cards but am consistently hitting low starting limits on new cards despite decent scores and income

Chase Sapphire Reserve AU $23K , Age 1yr
Capital One QS, $1.5K, Age 3yrs (1 late payment 30days, 2yrs ago)
- I've made all other payments before this late and after on time and in full. Any hope in getting that removed if I call Capital One directly?
NEW Venture One, $2,950 (includes combined limit from below card), Age -30 days
- Capital One QS1, $950, 3 yrs
NEW Amex Blue Cash Preferred, $1k, Age -30 days
Student Loans ~$75K, in good standing
Car Loan ~$10K, in good standing

Curious as to why my starting limits were so low when I have decent scores and good income I pulled my Experian report

I've identified that this is due to an old card that was closed-charged off in 2015 and I immediately paid it off - a family member was using it and I got burned
I was under the impression that when I paid it off that it would be removed from my credit report or corrected (not sure on the terminology which is important to know moving forward)
- This is the card that I'm looking to have either an "early exclusion" or dispute on

TU 701

EQ 711

EX 705

Re: "Early Exclusion" vs. Dispute

Anonymous — Fri, 13 Apr 2018 15:45:12 GMT

@Anonymous

Early Exclusion is 6 months early for Transunion and 3 months early for Experian and this is off the 7 year regulation time to leave negative things on report. Doesn't seem like you are eligible for Early Exclusion as your instance is only 3 years old. Also decent income is not an income level. You have a lot of debt so that might be involved as well.

I am not suprised with your Amex starting credit limit as I have similar Experian score to you and close to 200k in income and zero debt and I started out at 1k on both my Amex Credit Cards.

Re: "Early Exclusion" vs. Dispute

thornback — Fri, 13 Apr 2018 15:47:26 GMT

Per FCRA, negative accounts are to remain on your report for 7.5 years after the Date of First Delinquency (though the bureaus typically exclude after 7 years). The Date of First Delinquency (DOFD) is the date the account first became delinquent (late) and was never brought current, leading to it being closed and placed in collections / charge-off status.

Early Exclusions (EE) refer to a consumer request of a credit bureau to remove an account, which is due to fall off your report within the next 1-6 months (depending on the bureau) based on the 7.5 year FCRA reporting statute, early.

For example: If a charge off account has a DOFD if 8/2011, that means it is due to fall off your reports in 8/2018 - 7 years after the DOFD. Transunion will honor an EE request up to 6 months before the scheduled drop off date - so the consumer may request this at anytime starting February 2018. Experian already removes items 3 months early - automatically - and will usually deny anything sooner than that, so an EE request is not necessary (though worth a try). Equifax will grant an EE 1 month early, so a consumer can request an EE in July 2018.

The account you have listed in your post with a 2015 chargeoff date won't reach the 7 year reporting statute till around 2022 - so you cannot request an EE.

You also cannot dispute without reason- such as inaccurate information. Paying a chargeoff does not result in removal of the account from your reports.

As for the Cap One late payment, you can write them a goodwill letter requesting removal as an act of good faith. It is at their discretion to do so. You can search for sample Goodwill letters on this forum. Many have had success - but Cap One can be a tough nut to crack - it may take a couple of letters to get a yes.

You can also try to goodwill the paid charge off account - but it's unlikely to have success. Again, it never hurts to try - you never know.

Good luck!

Re: "Early Exclusion" vs. Dispute

RobertEG — Fri, 13 Apr 2018 15:51:17 GMT

"Credit report exclusion" is a statutory requirement that any adverse item of information contained in a consumer's credit file with a CRA has a time limit after which the CRA must exclude the information from normal credit reports they issue. The intent of congress was to provide the ability of consumers to recover from prior credit problems after a reasonable period, which is normally set at approx. 7 years.

Each adverse item of information in a consumer's credit file has a defined exclusion period that is clearly specified in FCRA 605(a).

Credit report exclusion does NOT remove (delete) the information from the consumer's credit file. It prevents the CRA from continuing to include the adverse item in normal credit reports they issue, and is a "shield" against others obtaining knowledge of the item by simply pulling a consumer's credit report.

I say "normal" credit reports in that the exclusion is not absolute.

Section 605(b) defines specific circumstances in which none of the exclusion provisions apply, and thus a party can still receive a complete ("full factual") credit report that includes any and all normally excluded information. The most common full factual credit report applies to any consumer-initiated request for credit or insurance with a principal amount of $150,000 or more.

Disputes are a process under the FCRA wherein a consumer can challenge the accuracy of information in their credit file.

The consumer must clearly identify the information, and provide a showing of how/why the reporting is considered inaccurate.

In disputes filed with a CRA, the dispute is referred to the furnisher of the information, who must conduct a reasonable investigation and respond back to the CRA, either verifying the accuracy as reported, correcting so as to overcome the asserted inaccuracy, or stating that they cannot verify.

If the information is not either verified or corrected so as to overcome the asserted inaccuracy, the CRA is then required to delete the disputed information. Deletion is removal from the consumer's credit file, and thus no subsequent credit report can contain that deleted information, period, unless it later becomes reinserted.

In view of the above, if a consumer is requesting that a CRA exclude information earlier than its required exclusion period under FCRA 605(a), the consumer is requesting a favor from the CRA, and is not contesting the accuracy of the reported information.

Thus, a request for early exclusion is not a dispute.

At least one CRA will often request or implement a dispute in order to determine if they will grant an early exclusion, but technically that is an incorrect process, as there is no inaccuracy upon which to base an actual dispute.

Re: "Early Exclusion" vs. Dispute

Sadie5150 — Fri, 12 Oct 2018 13:02:35 GMT

Will a charge off (Capital One) be deleted 7 years after DOFD, even if I paid it in full a year after charging off?

Re: "Early Exclusion" vs. Dispute

Anonymous — Fri, 12 Oct 2018 14:30:01 GMT

@Anonymous wrote:
... I've identified that this is due to an old card that was closed-charged off in 2015 and I immediately paid it off - a family member was using it and I got burned ...

Sounds like you should be researching "Goodwill Letter" instead. It's not a dispute because you admit it's validity & it's much too early for an EE. Good luck.

Re: "Early Exclusion" vs. Dispute

Anonymous — Fri, 12 Oct 2018 14:33:58 GMT

^ Yes

Re: "Early Exclusion" vs. Dispute

Anonymous — Fri, 12 Oct 2018 14:34:34 GMT

@Sadie5150 wrote:
Will a charge off (Capital One) be deleted 7 years after DOFD, even if I paid it in full a year after charging off?

Yes

Re: "Early Exclusion" vs. Dispute

Anonymous — Mon, 15 Oct 2018 01:44:06 GMT

@RobertEG wrote:

I say "normal" credit reports in that the exclusion is not absolute.
Section 605(b) defines specific circumstances in which none of the exclusion provisions apply, and thus a party can still receive a complete ("full factual") credit report that includes any and all normally excluded information. The most common full factual credit report applies to any consumer-initiated request for credit or insurance with a principal amount of $150,000 or more.

I hate to veer this post off-topic, but do Equifax, Experian, and Transunion provide these reports? Wouldn't we have the same rights to view these reports and dispute any inaccurate information?

My conslusion is that while the law allows for it the major credit reporting agencies don't currently offer such a report.

Re: "Early Exclusion" vs. Dispute

RobertEG — Tue, 16 Oct 2018 22:45:19 GMT

All the CRAs are required under sectin 605(b) to provide such reports if the requestor includes in their request a showing that the report is being requested with respect to any of the situations set forth in FCRA 605(b), such as with respect to consideration of a consumer-initiated request for credit or insurance having a principal amount of $150K or more.

If the creditor then denies credit based on the credit report, that is an adverse action under FCRA 615, and entitles the consumer to then send a copy of the denial letter to the CRA within 60 days and receive a free copy of the credit report provided to the creditor.

Upon what are you basing the statement that the CRAs dont have to comply with those provisions of the FCRA?

Re: "Early Exclusion" vs. Dispute

Anonymous — Mon, 22 Oct 2018 01:58:07 GMT

Where does 605(b) require that consumer reports include negative information older than 7 years? The way I read it: 605(a) requires charge off, late payment, etc more than ~7 years old be excluded from "consumer reports" and 605(b) allows (but does not require) such information to be present in certain cases.

609(a) states that "every consumer reporting agency shall, upon request, clearly and accurately disclose to the consumer
all information in the consumer’s file at the time of the request"

File is defined in 603(g) as "all of the information on that consumer recorded and retained by a consumer reporting agency regardless of how the information is stored."

In practice I have never heard of a consumer report nor consumer file from Equifax, Experian, or Transunion to contain such data. I don't dispute that the law allows them to do so if they so choose.