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Determining DOFD for closed card by creditor

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New Member

Determining DOFD for closed card by creditor

Hi,

 

I asked this before and got good answers, but was wondering if anyone had the actual law I could reference. 

 

In Sept 2015 after 3 missed payments, my chase card was closed by chase. I entered into a 5 yr payment plan and paid that on time. Except in 2018 it was all 90 day lates because I did not know auto pay was off. 

 

Account was never put in collections or charged off. 

 

Which is the DOFD for the 7 year clock? 2015 or 2018? Where can I read this officially? The main question is can a closed account that was closed for deliquency ever truly become current?

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Valued Contributor

Re: Determining DOFD for closed card by creditor

here is a link that might help

 

https://rebuildcreditscores.com/what-is-the-fcra-compliance-date/

 

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Message 2 of 5
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Super Contributor

Re: Determining DOFD for closed card by creditor


@Flowerpetalpurple wrote:

Hi,

 

I asked this before and got good answers, but was wondering if anyone had the actual law I could reference. 

 

In Sept 2015 after 3 missed payments, my chase card was closed by chase. I entered into a 5 yr payment plan and paid that on time. Except in 2018 it was all 90 day lates because I did not know auto pay was off. 

 

Account was never put in collections or charged off. 

 

Which is the DOFD for the 7 year clock? 2015 or 2018? Where can I read this officially? The main question is can a closed account that was closed for deliquency ever truly become current?


@Flowerpetalpurple if the account was never sent to collections or charged off, the late will age off 7 years from when it occurred typically and the account will typically remain until 10 years after closing. It will reflect as a clean account once the delinquencies drop.

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Super Contributor

Re: Determining DOFD for closed card by creditor

2018.

 

I just pasted the law here:

 

https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Next-Step-Question/m-p/6151789/highlight/tru...

-Our Community’s updated scoring wisdom: Link to Scoring Primer.
-For Negative Reason Codes see: CassieCard’s Score Factors thread.
-ccquest’s workbook to calculate metrics for you: Link to Workbook.

Oct 2020 New Account Scorecard.Nov 2020, No New Account Scorecard (reassignment conflated with aging. EX9 not updated yet. Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.


RIP:
(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 4 of 5
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Legendary Contributor

Re: Determining DOFD for closed card by creditor

What is commonly referred to as the Date of First Delinquency (DOFD) is legally defined under FCRA 605(c) as 

"the date of the commencement of the delinquency which imme-diately preceded the collection activity, charge to profit and loss, or similar action," and applies only to charge-offs and collections.

Both published FTC opinions and prior case law have clearly established the meaning of "date of commencement of the delinquency" to be the date that the account first became delinquent, and thereafter remained delinquent up to the time of charge-off or collection.  

 

Note that the definition of DOFD provided within the FCRA explicitly applies only to collections or reported charge-offs, and does not specfically apply to reporting of only monthly delinquencies.

Additionally, FCRA 623(a)(5) only mandates the reporting of DOFD when there is a reported CO or collection, so while an account will still have a date of commencement of delinquency when only monthly delinquencies are reported, there is no requirement under the FCRA that the creditor report a DOFD to the CRA, so it may be absent from your credit file/report.

 

However, the same logic that applies to use for charge-offs is also applied to determining q DOFD for a chain of delinquencies.  The date of commencement of delinquency is still the DOFD.

 

The issue of how the DOFD is then used for credit report exlusion of a chain of monthly delinquencies when no charge-off is reported is not expclicit  under the FCRA, as FCRA 605(c) only applies to COs and collections.

Montly delinquencies are a form of "other adverse items of information," and are covered under FCRA 605(c), but rather under the general, catch all exclusion provisions of FCRA 605(a)(5), which is only stated broadly to br 7 yers from the date of the adverse item.

 

It is thus a matter of interpretation of how or whethr DOFD also applies to exclusion of monthly delinquencies in a common chain.  One of the CRAs, namely EXP, has published its interpretation of use of DOFD for a chain of monthly delinquencies as being the date of hte first delinquency in the chain,, and uses that date for exclusion of all subsequent monthly delinquencies in that same chain is 7 years from the DOFD.  See the EXP web page for their discussion of that interpretation and policy.  The other two CRAs dont have such a published policy, and frequently exclude each delinquency in a common chain separately at 7 years from its individual date of occurance.

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