DOFD closed Chase card

[Anonymous]

My Chase card was closed after 3 missed payments in Sept 2015. 

It was not charged off or sent to collections. 

I eventually paid it off. 

Everything I read says the DOFD only applies if it was charged off or sent to collections. It was just closed by the creditor. 

Does anyone know if the DOFD is indeed Sept 2015 meaning it will drop off in 2022 or will it drop off in 10 years, or 2025?

[chiefone4u]

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@Anonymous wrote:

My Chase card was closed after 3 missed payments in Sept 2015. 

It was not charged off or sent to collections. 

I eventually paid it off. 

Everything I read says the DOFD only applies if it was charged off or sent to collections. It was just closed by the creditor. 

Does anyone know if the DOFD is indeed Sept 2015 meaning it will drop off in 2022 or will it drop off in 10 years, or 2025?

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DOFD should be your first missed payment (30 day's after payment due date that missed if I remember correctly).

Because the card was not charged off or sent to collections the CRA's and/or Chase may handle it in different ways.

There is a chance that in September 2022 the lates will start dropping off one at a time. You could have all lates drop in June 2022. Or possibly have the entire account removed in or around October 2022.

YMMV of course. I've had account's do all three listed above based on different CRA's then the month after 7 year's elapsed the creditor deleted the account from all CRA's.

My last Chase account that was closed by them had the payments drop month by month until the account had been closed for 10 year's, at which point it vanished from my reports.

-- I know, clear as mud... I don't think anyone can tell you with 100% certainty how your account will be handled in two year's from now. --

[Anonymous]

I think what you experienced with your Chase will happen to me. 

This is funny because why did I ever bring it current? It is like I'm penalized 3 extra years for paying it. The system is bizarre. 

[chiefone4u]

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@Anonymous wrote:

I think what you experienced with your Chase will happen to me. 

This is funny because why did I ever bring it current? It is like I'm penalized 3 extra years for paying it. The system is bizarre. 

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If it removes the lates and holds the account, it will continue to help your AAoA (Average Age of Accounts) until it ages off in 2025. The extra age could be useful. 

Not seeing when you paid the card off, it's hard to guess.

When I first read your question I thought you implied you had paid the card off after the account was closed from missing 3 payments; I now realize that you only said why it was closed and you eventually paid it.

It is likely if you went from default 30+ days late escalating to a reported $0 Balance without becoming "current" from payments that the whole account should be removed around September 2022.

If you were current for say 12 months between closed by grantor and $Zero balance reported, the first answer I gave could play out.

While you may question yourself for bringing it current, the ability to sleep at night knowing you took care of your obligations is why... a strong moral standing (and a chance Chase will one day offer you another credit card ).

[Anonymous]

2022, not 2025.

To respond to the above post, bringing it current is better than just letting it go.  When you bring it current the clock is running from the last late payment assuming it's simply a delinquency (late payment).  If you blow it off and it ends up in Collection/CO land the clock doesn't ever start if it's updated every month as a current derog.

[Anonymous]

From what I've researched, if I let it go to a C/O, it would completely drop off im 7 years. The whole account would drop off. 

What actually happened was I missed 3 payments, Chase closed it, I entered into a payment arrangement with them, and a few later they stopped deducting from my bank account. I forgot I had to renew the auto payments every year. So now all of 2018 shows 90 day lates. Now, those won't drop off until 2026. 

Sadly if I had let them charge off, I'd be free and clear in 2022. 

The system is rigged. Horrible system. 

[RobertEG]

That is a new fact pattern regarding the current status of the account.

The original post stated that the account was paid, indicating that it was no longer delinquent after the date it was paid, with the current status then becoming Paid, or Paid, Settled for Less.

While the current status does not effect the exclusion of individual reported derogs, it does affect whether or not the entire account is subject to removal when the derogs are excluded, and thus that is a substantive difference.

As for the DOFD and its relevance to credit reporting, a few clarifications are in order.

Whenever an account first becomes delinquent, that establishes what is referred to as the DOFD, which then becomes the billing due date for that first delinquent payment.   That continues to be the DOFD that applies to any delinquencies, charge-offs, or collections that occur after that DOFD up to the time when the account is returned to good standing.  If the account remains open, and thus new charges can thereafter be made. a NEW DOFD will then occur and apply to any subseqent chain of delinquencies after the prior period of delinquency.

As for credit report exclusion of delinquencies and/or a reported charge-off, you still have an actual DOFD for any period of delinquency.  However, the creditor is only required to report the current DOFD to the CRA when they have reported a charge-off (see FCRA 623(a)(5)), as that DOFD is needed by the CRA to calculate the credit report exclusion date of the charge-off, which is no later than 7 years plus 180 days from the reported DOFD of record  (FCRA 605(c)).  While they MUST report the DOFD whenever they report a charge-off, that does not mean that there is no actual DOFD for other periods of delinquency.  It only means that they are not required to report a DOFD to the CRA if the only reported derogs are monthly delinquencies, such as 30-late, 60-late, etc.

Since the FCRA only mandates use of DOFD for exclusion of charge-offs and collections, and not, for example, when there is a simple chain of reported monthly delinquencies, reporting of DOFD is optional on the part of the creditor.

The CRA credit reporting manual clearly provides for reporting of DOFD whenever the account has become delinquent, but are only required to do so if they have additionally reported a charge-off.

However, one of the big-3 CRAs (Exp) has interpreted the exclusion of monthly delinquencies as being based on the DOFD for that string of monthly delinquencies, meaning that all delinquencies in that common chain are excluded by them after 7 years from the DOFD.   If a DOFD has been reported, they use that date, and if a DOFD has not bee separately reported, they infer the DOFD by using the date of the first reprted delinquency it that chain.

Exclusion of monthly delinquencies, at least by Exp, thus occurs using the reported or presumed DOFD.

Thus, you are not penalized by the lack of any charge-off.

As for removal of the entire account as of the exclusion date, that only applies when the account remains delinquent upon reaching the exclusion date for charge-offs or monthly delinquencies.  If the account has been returned to a non-delinquency status at the time of credit report exlusion of derogatory individual items, then and only then is it CRA policy to remove the entire account and not just the derogs.

[Anonymous]

I have one question for you. 

First, let me restate the issue. In Sept 2015 a Chase card was closed by creditor in 2015. I then made a 5 year payment plan. It was current (still closed) until Chase stopped withdrawing from my bank 3 years into the deal. For 1 whole year I had a string of 90 day lates. 

If I had never brought it current in 2015, I could wipe it all in 2022. But now I have to wait until 2026 for the year of 90 day lates to wipe. 

My question for you is: If my Chase card was closed in 2015 (not sent to collections), can it ever be made current for purposes of reaging the 7 year clock? I just feel like a closed account from a delinquency can never be current, even if it is all caught up after the fact. 

Thanks for any help. 

[Anonymous]

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@Anonymous wrote:

I have one question for you. 

First, let me restate the issue. In Sept 2015 a Chase card was closed by creditor in 2015. I then made a 5 year payment plan. It was current (still closed) until Chase stopped withdrawing from my bank 3 years into the deal. For 1 whole year I had a string of 90 day lates. 

If I had never brought it current in 2015, I could wipe it all in 2022. But now I have to wait until 2026 for the year of 90 day lates to wipe. 

My question for you is: If my Chase card was closed in 2015 (not sent to collections), can it ever be made current for purposes of reaging the 7 year clock? I just feel like a closed account from a delinquency can never be current, even if it is all caught up after the fact. 

Thanks for any help. 

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I would pull all 3 CRs from annual credit report for a better idea of how each bureau will handle that situation.

If they will age off in 7 or (10 years also for EX) they will list it.

TU will list "estimated date of removal" if it is  considered a derog TL.

EQ will list "date if first delinquency" if it is considered a derog TL and add 7 years to that date and that is when it should age off. EQ also lists "date major delinquency first reported" and this is not the date you are looking for.

EX will list "on record until" if it is a derog or positive account, but not always. I have a couple accounts like yours that went from late to cls and it has no age off date, where as TU and EQ does and is considered derog and aging off 7 years from DoFD with them. I also have positive TLs that are closed and they list an "on record until" date 10 years post-closing and never once had a late or were derog in any way and other positive TLs that do not have an "on record until" date. This "on record until" date may be different from TU and EQ because they build in 2 years of EE (early exclusion) into that date, so don't think it is autmatically incorrect because it is different from the other bureaus.

Let us know what you find out!

[Remedios]

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@Anonymous wrote:

I think what you experienced with your Chase will happen to me. 

This is funny because why did I ever bring it current? It is like I'm penalized 3 extra years for paying it. The system is bizarre. 

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You're not being penalized for paying back what you took from Chase. 

You're penalized because you didn't repay it according to terms and conditions.  Due dates are there for a reason. 

As a cherry on top of the cake, if you didn't bring it to current and avoided CO, you'd find out what the real penalty is. 

It's really pointless missing payments, then complaining about paying back what you borrowed.