@RobertEGwrote:
The FCRA does NOT specifically define DOFD as also being used to determine the exclusion of monthly delinquencies, and does NOT require any separate reporting of the DOFD to the CRAs when there is a reported monthly delinquency.
FCRA 605(a) defines the exclusion periods for all types of adverse items of information reported to a CRA.
It does so by providing first explicit definitions for certain types of adverse information in subsections 605(a)(1) thru 605(a)(4), and then providing a catch-all subsection 605(a)(5), which sets a 7 year exclusion period for any other adverse item of information not included in prior subsections (a)(1)-(a)(4). Monthly account delinquencies do not have their own separate definition within any of the prior subsections, and thus broadly fall within the catch-all provisions of subsection (a)(5), which does NOT make any reference to use of DOFD when applied to monthly delinquencies.
With that as the statutory background, there is no requirement under the FCRA for any separate and explicit reporting of the DOFD by a creditor when they report a monthly delinquency. The primary reason is that the CRAs provide separate codes for reporting of delinquency status that includes both the fact that the account is delinquent AND the time since initial delinquency. Reporting in April, 2014 of a 60-late, for example, states that the account was delinquent at the time of that reporting, and 60-89 days beyond the date the account initially became delinquent. Thus, reporting inherently includes the date of first delinquency, albiet inferred rather than separately reported under some requirment of the FCRA.
While FCRA 605(a)(5) makes no reference to DOFD, and does not mandate removal of delinquencies based on DOFD, the CRA policy for decades has been to consider the initial account delinquency to be the "adverse item of information" being considered for exclusion under subsection 605(a)(5), and thus excludes all subsequently reported delinquencies in the same chain at the same date of 7 years from the date of initial account delinquency.
So, getting finally to the subject of the post, which is what is done if no DOFD is required to be reported when a monthly delinquency is reported, and the CRA is thereafter determining the exclusion of a chain of delinquencies?
The CRAs indirectly address that issue in their common credit reporting manual, titled the "Credit Reporting Resource Guide," by stating as a credit reporting guideline that when a delinquency is reported, the furnisher should also provide the date of initial delinquency.
The CRAs reserve a code called the "FCRA Compliance Date/Date of First Delinquency," which is, for those interested, stored in Field Code 25 of the Base Segment of the consumer's credit file.
Creditors are instructed to fill Field Code 25 as a statutory requirement when they have reported a charge-off, but are also requested to fill Field Code 25 when they are reporting monthly delinquencies, but it is not a stautory requirment.
If the creditor fails to separately report a date to Field Code 25 when reporting a monthly delinquency, the CRA then uses the inherent/implied date of initial delinquency based on the reported delinquency code. For example, if a 60-late is reported in April 2014, with no filling of Field Code 25, the CRA will assume intial delinquency was in March 2014, and use that in their later determination of exclusion of the chain of delinquencies that includes that late. Thus, all delinquencies in that chain would be excluded as of March, 2021.
I have 3 -120 day lates reported in Jul, Aug, and Sep 2011. There are no 30, 60, or 90 day lates reported.
I keep learning from you Robert. The last time I saw you post about monthly lates I learned that they would drop off all at once rather than one by one. If I am reading this correctly then instead of them dropping off in Jul, then should drop off in April as that would have been when the account was first 30 days even though that late payment has not been reported.
Am I correct in how I have read Robert's post?
@Anonymouswrote:
You're skirting around the issue. You have your credit report in front of you. On what month was it charged off? You know what it is, but you seem to be purposely vague. I am not asking about your 30 or 120 day lates. Was it in 2012 of after your 120 day lates in September of 2011?
Not sure if this is directed at my post or the OP. I am not the OP. I am only talking about monthly lates, no charge off. My report shows 120 days late in Jul 2011, 120 days late in Aug 2011 and 120 days late in Sep 2011. It does not show a 30, 60 or 90 day late preceeding the first 120 day late. I was current as of Oct 2011. So this is a monthly late issue not a charge off issue.
