DOFD question

[redhouse69]

I have been running my credit report on Equifax since the beginning of the year.  I had a Discover card that had been charged off a long time ago and I was looking forward to it dropping from my credit report due to the seven year credit reporting time period SOL deal. So in April I noticed Discover w3as nowhere to be found on my credit report.  I was pretty excited about that.  The DOFD was listed as 05/2003.

Now I get a letter in the mail dated 5/26/10 from a collection company called CBCS with a settlement offer..  The letter says that if I do not respond in 30 days they are going to assume my debt is valid.

I was wondering what I should do?

The problem I am having is that the only info I have to go on is the DOFD date of 05/2003.  I do not have the exact date, just the month.

30 days from the letter's date will be after the time period of the 7 year DOFD.  So what happens if I don't respond?

What would you do if you were me?

Thanks for any tips you have to offer.

[MarineVietVet]

Here is how and when derogs drop from you CR, and are thus no longer included in FICO scoring.

Monthly delinquencies under an OC account drop at 7 years from their individual date of delinquency. The date of first delinquency (DOFD) has nothing to do with these drop-off dates. They drop from their own individual dates. So look at each prior OC reported monthly derog date, and simply add 7 years.

If the OC subsequently reports their account as a charge off, that is a totally different and additional post to your CR. Their post as a charge-off will remain in your CR for up to 7.5 years from the DOFD on the OC account, which is the first 30-day delinquency you had on the account, and disregards any later 60/90+ delinquencies that followed. That cannot be reset.

If the OC then refers the account for collection, and a CA posts to your CR, the drop-off date of their collection reporting is the same as that of a CO. It is up to 7.5 years from the same DOFD on the OC account, and the CA cannot reset this date.

So if the DOFD of 5/2003 is correct that charge off and/or collection should be gone about 11/2010. Sometimes though things will disappear a little earlier than scheduled. I would probably go ahead and send a DV to CBCS just to make them prove they have a legal right to collect on this debt and then wait out the 6 months.

Be aware though that even after the CRTP expires collection efforts can continue. It's just that no entry can be made on your credit reports.

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

You can do the same thing with hard work

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[RobertEG]

As far as your actual DOFD, your best source is from your own account records.

Can you determine when you first went into default on the OC account, and never brought it back into good standing?  What the CRA tells you is frequently inaccurate.

As for the collection, when it drops, or is scheduled to drop from your CR,  (7 ½ years from your DOFD) has no relevance to how long a CA can continue to attempt collection of the debt.  The debt does not go away until paid, and thus they can continue to try to collect it.

The have provided you written collection (“dunning”) notice.  Failure to DV within 30-days only relinquences your right to compel them to cease active collection activity.

It is not a legal admission that you owe the debt. 

How  you handle the collection at this point is a personal decision.  The main issues are that a CA has somewhat the upper hand as long as their collection is still appearing in your CR, and you are willing to pay in order to get it deleted.  If it is soon to drop due to the regular 7 ½ aging, they lose that incentive.

The only remaining clout they have is to bring legal action. To assess that risk, you must know the statute of limitations on debt collection in your state.  If it has expired, and they bring legal action, you have an absolute defense if your state SOL has expired.  Most states have SOLs that run for 3-6 years on CC debt.  So know your state SOL.