7 Year Clock

[Anonymous]

Hi everyone! I am new to the message board. If a similar question has been posted previously, I apologize in advance.

I financed an automobile in Nov 2001 through JACOM, a small credit union based in Los Angeles. I went through some tough times and became very delinquent on payments. My car was repossessed in Mar 2003(my last partial payment being Feb 2003.

I recently ordered a copy of my Experian credit report. The auto account is on my report as a negative item and it states that it will remain on my report 'til Mar 2012. That is 9 years from the date vehicle was repossessed.

I contacted the credit union. They said that "the 7-year clock starts from the date the balance was charged off/account closed". However, I read on the Experian Ask Max advice column that "Charged-off accounts: Remain seven years from the date of the initial missed payment that led to the charge off (the original delinquency date)".

I tried contacting the credit union again but they informed me that "I'm wasting their time". I am trying to get my life back in order and fixing my credit with accurate info is one of my priorities. I tried disputing via Experian online and by mail, but I received a response letter stating that this item could not be disputed again because they are claiming it was verified previously.

Questions...
1. Does the 7-year clock start at the original delinquency date, OR the date the balance was charged off/account closed?

2. If I am correct in this matter, since Experian will not allow me to dispute this matter, and the credit union will not speak to me, what would be my next option? Whom should I call or write to? Any SPECIFIC instructions would be greatly appreciated to point me in the right direction.

By the way, I am still making payments. Small amounts but it's what I can afford and I make sure to send at the end of each month. The credit union(original creditor) never sold my debt to an outside agency.

Thanks everyone! =)

[RobertEG]

Your CU simply does not know the law.  You have two basisc different types of dropoff dates.

As for the individual monthly delinquencies that occured on the OC account before it was charged off, they drop from your CR at 7 years from their individual dates of monthly delinquency.  For example, a 30-day late will drop at 7 years, and the subsequent 60-day delinquency will, of course, drop a month later.  FCRA 605(a)(5).  Date of first delinquency does not pertain to later delinquencies, nor does the date of any payments, charge off, or repossession.

As for the charge off, that is where the date of first delinquency (DOFD) comes into play.  FCRA 605(c) sets a single date certain of 7 1/2 from the DOFD for any continued reporting of the CO in your CR.

IMHO, I would not talk to the CU.  Drop off dates are determined by the CRAs under these two statutory provisions of the FCRA.

If any of these drop off dates has expired, simply file a dispute with the CRA under FCRA 611(a), citing the appropriate section of FCRA 605.  It is up to them to investigate and report back to you.  . There is no need to dispute utiil a date has expired.

Message Edited by RobertEG on 12-15-2009 11:55 PM

[Anonymous]

Hi Robert, it's nice to meet you. =) Thank you very much for your reply.

I now understand that individual monthly delinquencies should drop from my CR at 7 years from their individual delinquent dates. I also now understand that CO should drop 7 1/2 years from DOFD.

I agree, I should not speak to the credit union anymore. However, I'm not sure if it will do any good to contact Experian again since they have informed me already that I can not dispute since they already verified with credit union previously. I even sent my last payment canceled check, auto-repo report, etc. *sigh* I will try again and definitely cite the appropriate section of FCRA 605(a)(5). Thank you for this info.

Although the 7 1/2 year period from DOFD will not expire 'til 2010, I wanted to start early because I figured it would be a lengthy process, which might take a few months to correct. I have a fixed 30 yr mortgage with interest at 10% and I would love to refinance as soon as my negative item drops

Besides contacting/disputing Experian again, do you know if there's any other way? If I hire a credit repair attorney, I'm assuming they'll just contact Experian the same as I would right? Please let me know if there's any other possible solutions.

Here's the info on my Experian CR...

Status: Account charged off

Status Details: This account is scheduled to continue on record until Mar 2012.
This item was verified on Aug 2009 and remained unchanged.

Date Opened: 11/2001

Date of Status: 06/2005

Reported Since: 11/2001

Last Reported Date: 11/2009

Account History: Charge Off as of Feb 2008 to Nov 2009, Dec 2005, Nov 2005, Sep 2005, Jun 2005 to Aug 2005
30 days past due as of Mar 2003.

Thank you Robert. =)