topic Re: Collection on CR First Time after 6 Years in Rebuilding Your Credit

Collection on CR First Time after 6 Years

michjd75 — Tue, 20 Mar 2012 17:02:16 GMT

Is it legal for a CA to place a collection on credit report for the first time 6 years after DOFD? It came on December 2011 for the first time and is set to come off in 2013. They sent me a letter asking ME to provide them information on the debt after I disputed the details of the charge and dates. I am in Texas if that helps in any responses or feedback you can possibly provide. I am debating whether I should send a DV with a statement asking them to delete from all 3 CRA's if not validated within 30 years.

Re: Collection on CR First Time after 6 Years

pizzadude — Tue, 20 Mar 2012 17:26:02 GMT

@michjd75 wrote:
Is it legal for a CA to place a collection on credit report for the first time 6 years after DOFD? It came on December 2011 for the first time and is set to come off in 2013. They sent me a letter asking ME to provide them information on the debt after I disputed the details of the charge and dates. I am in Texas if that helps in any responses or feedback you can possibly provide. I am debating whether I should send a DV with a statement asking them to delete from all 3 CRA's if not validated within 30 years.

There's nothing illegal about them placing a collection on your reports now. The CRTP for collections is 7.5 years from DOFD of the original account.

I believe that in Texas they have a strict 30 day time limit in which to do a DV. Obviously if they are asking you for information on the account they are not DV'ing at all.

Re: Collection on CR First Time after 6 Years

michjd75 — Tue, 20 Mar 2012 17:31:41 GMT

That makes sense. And I meant 30 days - not years.

So even with a SOL of 4 years they can still place it for the first time after 6 years?

Re: Collection on CR First Time after 6 Years

pizzadude — Tue, 20 Mar 2012 17:36:54 GMT

@michjd75 wrote:
That makes sense. And I meant 30 days - not years.

So even with a SOL of 4 years they can still place it for the first time after 6 years?

Yeah, I thought that's what you meant.....

And yes, any collection can be reported up to the end of the CRTP. The SOL is the time period in which a creditor has to bring legal action against you for unpaid debt, and it has nothing to do with the credit reporting time period ( CRTP ).

Re: Collection on CR First Time after 6 Years

Anonymous — Tue, 20 Mar 2012 20:38:32 GMT

Just this morning I got an alert from my credit monitoring service that a collection had been placed on my Experian report. I was devastated because my Experian Report was FINALLY 100% clean earlier this month. Last month a collection was placed on my Equifax -- same circumstance -- its as if the collection agency snooped and saw that these two credit reports were MUCH too clean. Come to find out, the collection placed on Experian is from the same bottom feeders that attacked my Equifax report last month. This particular collection is already on my Transunion CR and has been for years. By the way, it is paid! The silly thing of it is -- this account is due to fall off next month!

I am convinced, collection agencies will do ANYTHING to ruin a person. Now, mind you, they have to PAY to report this paid collection for just a very few days before it is scheduled to be excluded from all 3 CRs.

MADNESS!!!

Re: Collection on CR First Time after 6 Years

Anonymous — Tue, 20 Mar 2012 20:42:57 GMT

I have a sick sense of humor....but I would probably send a letter to the CA and say:

"So, I saw that you added an old collection account to my credit report which will be removed automatically in 30 days. Sadly, this actually cost you money and had no effect on me since I'm not in the market for a loan these days. Thanks for playing and good luck next time!"

Re: Collection on CR First Time after 6 Years

Anonymous — Tue, 20 Mar 2012 20:48:24 GMT

@michjd75 wrote:

So even with a SOL of 4 years they can still place it for the first time after 6 years?

Yes, and they don't care if its already been paid, or not!

Re: Collection on CR First Time after 6 Years

Anonymous — Tue, 20 Mar 2012 20:50:21 GMT

@Anonymous wrote:
I have a sick sense of humor....but I would probably send a letter to the CA and say:

"So, I saw that you added an old collection account to my credit report which will be removed automatically in 30 days. Sadly, this actually cost you money and had no effect on me since I'm not in the market for a loan these days. Thanks for playing and good luck next time!"

I actually did write them back a C&D letter but, I like YOURS much better!

Re: Collection on CR First Time after 6 Years

RobertEG — Tue, 20 Mar 2012 20:52:02 GMT

A debt collector does not have to be concerned with whether or not their reporting is beyond the credit report exclusion period. They can report it at any time, providing it is accurate. It is up to the CRA to monitor the credit report exclusion date, and assure that they dont include any such items in any credit report they issue.

What prevents a debt collector from reporting to a CRA once the exclusion period has passed is that any party who reports any information pertaining to an account that has been placed for collection must, within 90 days of such reporting, also provide the DOFD on the OC account to the CRA to which they have made the reporting. FCRA 623(a)(5).

In reporting the DOFD, they must make the efforts set forth in section 623(a)(5) to get that date from the OC, or the OC's prior reporting.

Reporting a collection that has passed its CR exclusion date thus requires that they accurately report the DOFD, and if already past the exclusion period,they will know it at the time of reporting. Kinda useless on their part if they know it is excluded. It would never see the light of day.

Their alternative would only be to report a later DOFD that would still permit its inclusion, but that would subject them to a serious charge of illegal reporting of a DOFD, contrary to the specific requirements of section 623(a)(5).

Re: Collection on CR First Time after 6 Years

Anonymous — Wed, 21 Mar 2012 00:26:38 GMT

Robert wrote:

So if I understand correctly, the DOFD is the OC DOFD and not the CA's? Here I was worried that the collection agency date was when they received the loan from the OC and not the DOFD.

Re: Collection on CR First Time after 6 Years

pizzadude — Wed, 21 Mar 2012 01:22:04 GMT

@Anonymous wrote:
@Anonymous wrote:
Their alternative would only be to report a later DOFD that would still permit its inclusion, but that would subject them to a serious charge of illegal reporting of a DOFD, contrary to the specific requirements of section 623(a)(5).

So if I understand correctly, the DOFD is the OC DOFD and not the CA's? Here I was worried that the collection agency date was when they received the loan from the OC and not the DOFD.

You are correct. There is only one DOFD, which occurs at the point in time that you first become deliquent on the original account without ever becoming current again. Any and all collections reported against this account use this same DOFD.