topic Re: Is Date of First Delinquency my last hope? in Rebuilding Your Credit

Is Date of First Delinquency my last hope?

Anonymous — Fri, 03 Oct 2014 20:26:35 GMT

On my report, I have an open collection from my local university for $6100. It has been assigned (not sold) to a CA. I have been unsuccessful with my requests for PFD to both the CA and OC. The problem that I have is that I need to attend the university next semester and, of course, the only way that I can is if I pay my debt to them. The OC has agreed to settle for $5300. This debt originated in 2000 and 2001. In the spring of 2012, I re-enrolled at the university thus, unknowingly, brought the debt current. Does anyone have any suggestions as to how I can get the collection removed from my report? I can't dispute the debt since I need to attend the school again. My only option is to pay the settlement amount. Can I dispute, with the bureaus, the fact that my first date of deliquency is in excess of 7 years or is this not possible if I'm paying off the debt? I appreciate any help that you can provide.

Re: CA won't PFD but I must pay ASAP!

Anonymous — Fri, 03 Oct 2014 01:12:42 GMT

Ask the Orignal Creditor to recall the debt

Re: CA won't PFD but I must pay ASAP!

Anonymous — Fri, 03 Oct 2014 01:28:25 GMT

I've already tried that as well. They are not willing to recall the debt.

Re: CA won't PFD but I must pay ASAP!

Anonymous — Fri, 03 Oct 2014 05:02:10 GMT

All you can do is pay them and then GW them.

Re: CA won't PFD but I must pay ASAP!

Anonymous — Fri, 03 Oct 2014 18:30:09 GMT

Back to my question regarding Date of 1st Delinquency. If I pay this settlement does this date get affected at all by my payment? I wouldn't think so. I think my only hope is the date of first delinquncy. You see, this debt was originally incurred back in 2001 when I originally attended the school. I didn't even know that I still owed this debt until I re-enrolled at the school in 2012. I don't ever recall seeing this debt on my credit reports until the recent one. It shows this debt as being reported on 06/2014 with a date of first delinquency of 09/2012. How can this be my date of first delinquency if this was a debt that has been carried forward since 2001?

I'm about at the point where I am going to dish out this money. I just don't want to make the mistake of paying first if it will hurt me later in my disputing efforts.

Re: Is Date of First Delinquency my last hope?

RobertEG — Fri, 03 Oct 2014 21:04:13 GMT

DOFD is the date of first delinquency, and can only be reset if the debt is broght currrent, and a new first delinquency then occurs.

If you first went delinquent and never brought the account back into current, non-delinquent status, then the DOFD remains as the date you first went delinuent.

If that was back in 2001, then no collection can show in your credit report after approx. mid-2009 (i.e., 7 years plus 180 days from DOFD).

It appears that the reported DOFD of 2012 is incorrect.

The procedure that the debt collector must follow for obtaining and reporting the DOFD is defined in detail in FCRA 623(a)(5).

In summary, they must do one of the following to obtain the DOFD from the OC:

1. If the OC has ever reported the DOFD, the debt collector must report that same date.

2. If the OC never reported a DOFD to the CRA, then the debt collector must contact the OC and attempt to obtain the DOFD from them. If the OC provides them with a DOFD, they must report that date to the CRA.

3. If the debt collector has attempted to obtain the DOFD from the OC, but those atttempts were unsuccessful, then the debt collector can make their best estimate of the DOFD, but in no case can they report a DOFD that is later than the date they obtained their collection authority.

It appears that the debt collector has relied on step 3, as the 2012 date is most likely the date they obtained their collection authority.

That presumes they conttacted the OC and were either unable to obtain the DOFD from them, or that the OC gave them a 2012 date.

Both of those are highly unlikely, as they are assigned collection authority by the OC, and thus presumably have contact with them.

I would send a direct dispute to the debt collector, providing your facts as to delinquency on the OC account, and challenging the reported DOFD.

If your dispute is successful, the debt collector will be required to update the reported DOFD with the CRA, which will result in immedite exclusion by the CRA of the collecton from any credit report they issue.

Re: Is Date of First Delinquency my last hope?

Anonymous — Fri, 03 Oct 2014 22:42:50 GMT

Thank you for your very detailed response RobertEG. The only thing that has me worried now is the portion in which you state that the DOFD can be reset if the debt is brought current. I'll give a little more backstory. In 2012, I met with the A/R guy at the university trying to figure something out so that I could re-enroll. He brought my account out of collections and just tacked on the CA's fees on top of my original debt. It was understood that I would use my student loans to repay some or all of this debt. Shortly after, I came into some legal trouble and was forced to use my loans for legal fees. I was subsequently incarcerated for 14 months and my debt at the university was sent back out to a different collections agency. Does agreeing to pay in the future constitute bringing the debt current? At no point did I ever sign anything or make any payments on the debt.

Re: Is Date of First Delinquency my last hope?

RobertEG — Fri, 03 Oct 2014 22:58:29 GMT

No.

The debt remained unpaid and delinquent.

The DOFD remains as the date you originally became delinquent on the debt.

Re: Is Date of First Delinquency my last hope?

Anonymous — Sun, 05 Oct 2014 05:13:21 GMT

That is good to know. I'm going to move forward with paying the debt off then. I will then dispute the DOFD with all 3 bureaus. Thanks again for your help.

Re: Is Date of First Delinquency my last hope?

xosamandaxo — Sun, 05 Oct 2014 05:59:36 GMT

Robert, so you are saying consolidating loans restarts the DOFD? I'm in a similiar situation with Sallie Mae. However, my Nelnet loans are due to fall off in 2015 because I never made a payment when due in 2008. I started the consolidation in 2011 and that did not seem to change the DOFD date on any of my reports.

Sorry to hijak thread. mine is here: http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/can-OC-add-lates-to-your-report-years-later/td-p/3491293

Re: Is Date of First Delinquency my last hope?

Anonymous — Sat, 31 Jan 2015 18:18:40 GMT

Hopefully, you're still around on this post RobertEG.

OK. Just wanted to update my progress on this issue. I have disputed the accuracy of the date of first delinquency with all 3 bureaus. It appears to be a useless process. After speaking with a few different rep's. at the bureaus, I found out that the bureau only submits a request for the information from the CA. Subsequently, the bureau receives an "electronic" response from the CA which has the same exact information as was reported before. At this point, the bureaus determine the information is "verified." At no point does the bureau actually investigate or look into the validity of CA's electronic response. Their response is taken at face value and my credit report dispute is deemed as satisfied. This process is laughable at best and appears to be just a useless and time-wasting step.

Next, I sent a direct letter to the CA. I included copies of paperwork showing that my DOFD was clearly prior to the 2012 time-frame which they reported. This was sent on Dec. 30, 2014 by certified mail and signed for on Jan. 02, 2015. As of today, I have not received any sort of direct response. I do see on my credit report that the same inaccurate information was reported to the bureaus recently, On January 7, 2015 it was reported to Equifax with these comments "Consumer disputes this account information." Also, On January 12, 2015 they reported to TransUnion with the following comment "Account information disputed by consumer, meets FCRA requirements."

Should I take these recent reports as their response or should I expect to recieve a direct response? What should my next step be? Talk to the Attorney General?

BTW, I have contacted the OC and sent a request for them to also send accurate information to the CA.

Re: Is Date of First Delinquency my last hope?

RobertEG — Sat, 31 Jan 2015 19:25:34 GMT

Contacting the OC and requesting a statement from them as to the actual DOFD on their account was most likely the best step taken, as that would, in my opinion, be the direct and most up to date evidence should you end up before a third party, either administratively (i.e., the CFPB) or legally (i.e., the court).

As for the lack of a proper revinvestigation by the CRA, you are correct in that they cannot merely rubber-stamp any verification provided by the furnisher.

If your evidence clearly shows inaccuracy and they verify, they are ultimately responsible.

I would send your complaitnt of their apparent misconduct of their required reinvestigation to the CFPB.

As for removal of the collextion, is that not a secondary issue at this point?

Won't payment satisfy the immediate issue of being able to re-enroll? The colege wont need your credit report to know it is paid....

Determination of the proper DOFD remains a factual issue that has to run its course, first through final resolution of your pending dispute, and then possibly by a followup complaint to the CFPB or civil action.

The outcome of that issue will only determine when the reported collection becomes excluded, which is totally independent of whether the debt has been paid.