7 year old late issue

[Anonymous]

Regarding this USAA report.  Last year in May of 2009, I disputed a car lease I had with Infiniti. The lease ended in 2005 and I was trying to get it removed because I had a 60 day late back in 2003.  So when I said the delinquency was over 7 years old and would they remove, Infiniti did not remove, but verified that the info was correct.  Now the USAA report under Negative Information is saying that "the last time negative information" was posted to my account was May 2009, which was when  Infiniti verified the data. This makes it look like I have a derogatory as recently as May 2009, when in fact the lease ended in 2005 and the 60 day late was in 2003.

Does anyone know if this is negatively affecting my score or my CR in general? Should I be worried about this.  My EX FAKO score on the USAA site is 712 while my EQ FAKO is 746 and TU FAKO is 716.

 My real FICO from EQ is 756 and FICO from TU is 745, My last FICO from EX was lender pulled about a year ago at 735.

Thanks for any input from anyone.

[llecs]

OP, I split your post to form a new one here. I had to edit the title, but changed nothing else. If you'd like to change the title, click "Options" and then "Edit Message".

In which month does the 60 day appear?

[Anonymous]

I'm not sure what month the 60 day late appears. In the 18 month history boxes, it only goes back to 2009, so I can't see what month the 60 day late is.

Here is another issue that Infiniti told me. My lease ended in 2005, but there was a dispute regarding property taxes they said I owed on the lease that we did not resolve until 2007. They said that the debt would stay on until 7 years from 2007 and not 2005 when the lease ended.

By the way, the Infiniti lease is only reporting on Experian.

any help you can give me would be appreciated.

[llecs]

I've never used USAA's version of CCT, but if it anything like CCT, then you can get your full report directly from EX. If you go to dispute info, follow the motions (please, don't dispute), EX will give you a free report. Anyway, look at the report from EX and you'll see the entire 7 years. If the late is listed in October, Nov. or December, it can still report and would impact the placement of that TL into the negative column. If reporting in those 3 months, then it's reporting accurately and I'd personally just wait it out at this point.

On the topic of the taxes, this could impact the way the TL reports. It depends if they reported that or not. I assume they delayed long after the lease ended before sending a tax bill (since the various local tax agencies typically update only once per year). If they updated the TL with that bill balance and it wasn't paid inside 30 days, they could have marked a late. Your full reports would show that. If that's the case, then it'll be longer before that late falls off. Pull your EX report as mentioned above and you'll see those details much better.

[Anonymous]

Thanks. I'll let you know what I find out.

[RobertEG]

Infniti was correct in refusing to remove the delinquency.   If it was accurate when reported, it should not be deleted.  It can remain in your credit file forever.

The 7-years period for continued inclusion in your credit report is not the responsibility of the OC, and is not grounds for deletion of their prior reporting.

The 7-year period set forth in FCRA 606(a)(5) is imposed on the CRAs, not the OC.  Expiration of that date does not even compel the CRA to delete any prior reporting from your credit file..

It is simply a prohibition of further normal  inclusion after 7 years of that item of information in a credit report they therafter issue.  However, even that date is not absolute.  FCRA 605(b) exempts this 7-year prohibition in the event an inquiry is made for your credit report involving requests for credit or insurance that involve a balance of $150,000 or more.  If the creditor had deleted this prior delinquency after 7-years, then credit reports provided under this exampton would not be complete.

The 2009 reporting by Infiniti was most likely just an update of account status, and not an update of date of occurance of the delinquency itself.  That wont affect it 7-year drop off date.

[Anonymous]

thank you for that very detail and complete explanation.

So basically the CRA is responsible for removing a debt that is over 7 years old, not the original creditor.

What date do they use to start the 7 year clock. Is it when the debt was paid off?  will the property taxes on the lease not getting resolved until two years after the lease ended going to extend when they will stop including it on my CR?

[RobertEG]

Yes, supposed CR "drop-off dates" are the sole responsibility of the CRA to determine, and comply with.

No, they are not responsible for removing debt, or delteing any prior reporting.  They are responsible for what was reported to them, and then what then and when they can report it. 

No, it is not the date anytthing was paid off, of any dates of later activity they report, on your part ot theirs, when it relates to OC or CA accoutn rerporting.

Again, nothing is really "removed"  from your credit file,   It is just a bar from CRA further credit reporting disclsure of that information in any subsequent credit report they issue..

It is simple.

For any monthly delinquency that occured on the OC account, it can no longer routinely be included in your CR after 7 years from that specific date.  FCRA 605(a)(5).

DOLAs, dates paid, dates later updated, etc, are meaninglesss to this statutory non-reporting date.

For any reporting of a charge-off or collection, there is one single, date certtain after which it normally cannot be reported in any routine CR they issue.

Again, totally unrelated to any dates of acttivity later reported. 

COs and CAs begin with the date of your first delinquency on the OC account, and no other date.  You add 180-days to that DOFD, and that begins the runnng of its exclusion in any credit report  date at 7 years thereafter.  FCRA 605(c).  No other subsequent reporting can can alter this one single, date-certain.  Period.

Other potential tax issues are separate.  If reproted, deal with them when and if they occur.  That is a separtate issue of other potential debt that does not go to the CR cessation  dates now reported.

Non-routine reporting of anything in your credit file, notwithstanding any supposed "drop-off dates" under FCRA 605(a), can be superceded by the exemptions set forth in FCRA 605(b).  Then the CRA can spill your entrire credit history in your credit report.