Lates and how they are removed from CR

[Effielin]

I had posted a question a few months ago regarding how lates would be removed from my credit report. I had 12 months of lates on my mortage beginning in 2011 and extending into 2012.  From the answers I got, I understood that once the oldest late hit 7 years, then all 12 lates would be removed at the same time, not one late and then the next month the next late...

Well, here I am with the oldest late being back in July 2011. Experian removed all the lates. TU and Equifax are removing the lates one at a time.. well, according to Credit Karma thats what they are doing.  Should I call TU and Equifax and ask for all lates to be removed, or are they doing it correctly?

Thanks any help.

[Pikaboo-icu]

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@Effielin wrote:

I had posted a question a few months ago regarding how lates would be removed from my credit report. I had 12 months of lates on my mortage beginning in 2011 and extending into 2012.  From the answers I got, I understood that once the oldest late hit 7 years, then all 12 lates would be removed at the same time, not one late and then the next month the next late...

Well, here I am with the oldest late being back in July 2011. Experian removed all the lates. TU and Equifax are removing the lates one at a time.. well, according to Credit Karma thats what they are doing.  Should I call TU and Equifax and ask for all lates to be removed, or are they doing it correctly?

Thanks any help.

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They are doing it correctly..

You could ask them for early exclusion- they may but are not required to, remove them a few months early.

Good Luck. 

[RobertEG]

CRA policy is that delinquencies in a common chain are all excluded no later than 7 years from the date the debt initially became delinquent.

That is based on the interpretation of FCRA 605(a)(5), which precludes any other adverse item of information from your credit report after 7 years from the occurence of the adverse item of information.

The accepted interpretaton of section 605(a)(5) is that the date of initial delinquency is the adverse item of information occurence date, and that later levels of delinquency are only reporting of increased time since initial delinquency.  See, for example, that explicit statement of policy on the EX web page.

If a CRA fails to exclude all delinquencies in a common chain once 7 years has expired since the date of first delinquency in that chain, then you can file a dispute asserting their lack of compliance with section 605(a)(5).

[Pikaboo-icu]

Robert;

So they don't go by the date of each individual late?

The 7 years would apply only to the first late and make all the rest eligible to be removed?

If there were 10-12 lates the last one wouldn't be 7 years old for almost 11 months.

I'm just clarifying as I believed the "late" had to be seven years old.

Thanks. 

[RobertEG]

The exclusion of monthly delinquencies does not have its own specific statement of exclusion period under any of the subsections of FCRA 605(a).

Section 605(a) has four specific subsections (1) to (4) that define the exclusion provisions for specific, selected types of adverse items of information, which are bankruptcies, tax liens, civil judments, and collections/charge offs.

Section 605(a)(5) then is the catch-all subsection which applies to "any other adverse item of information" that is not explicityly listed in preceding subsections (1) - (4).

Subsection 605(a)(5) sets an exclusion date of no later than 7 years from the date of occurence of the "adverse item."

That is the general catch-all subsection that governs the exclusion of monthly delinquencies.

It does not explicitly define whether a reported monthly delinquency has an occurence date that is defined by the date of initial delinquency, or whether each indvidual monthly delinquency resets and has its own specific date of adverse item.

Thus, the exclusion date for monthly delinquencies requires an interpretation of the broad statement of an "adverse item" in the statute.

The standard and accepted interpretation for decades has been that it is the initial occurence of delinquency on the account that is the adverse item of information, and that delinquency commences with the date of initial delinquency.  Later and higher levels of delinquency are not a new and separate occurence of delinquency, they are simply and extension of the period since initial delinquency.

A 90-late, for example, defines a delinquency based on its initial date of delinquency plus time since that date.

The EX web page clearly and explicitly states this long-standing interpretation of the statute.

All delinquencies based on the same initial date of delinquency are excluded no later than 7 years from the date of initial delinquency, and not separately as each reaches 7 years from the payment history profile month/year that it was reported.

[Pikaboo-icu]

Thanks Robert..

That makes it more clear.. I was under the false impression that each late would have to become 7 years old to be eligible.

Appreciate the info & explanation! 

CHEERS