Loan Servicer reporting wrong DOFD

[Anonymous]

Hi , I am new to the forums but basically I went to school in 2006, and did not get a traditional loan, the Loan is owned directly by the school. The debt reports to my credit bureau directly from the school, so the contact information is listed as NHTI -  - I called the # on my credit report and I was told that it is handled by a loan servicer.

I called the loan servicer and they told me they started servicing the loan in 2009 so they have date of first delinquency as 2009 and it will not be falling of my credit report for 3 more years... I am working to dispute this because the original loan from NHTI shows 2006 but my credit report has DOFD and account opened both as 2009. The loan servicer refuses to update it because they started servicing the loan in 2009... Can they do this??? The debt is from 2006 and I have documents in writing confirming the original creditor from NHTI is from 2006..

Please help!!!

[RobertEG]

What is the adverse information being reported under the account?

[Anonymous]

The correct DOFD should be 2006, but they are reporting 2009. Is this allowed? Can loan servicers report a date of first delinquency as 2009 since that' when they started servicing the loan??.. even though the real date of first delinquency is 2006.

[RobertEG]

The reporting to date apparently relates to activity on the OC account, be it directly by the OC or by their designated representative.

The only information reported on an OC account that gives rise to a requirement to report a DOFD to the CRA is a charge-off.

Thus, my prior question.... what is the adverse item that has been reported?  Unless it is a charge-off or the reporting of a collection, the issue of DOFD appears irrelevant.

[Anonymous]

Oh sorry, yes my bad, I misunderstood...

it is in collections. I have never paid on this ... the reason it sparked my interest is because i called the school directly (as they are the creditor listed on credit report)  to ask for pay for delete and the school told me that it was with collections, but the people that report to the credit bureau are the loan servicers, but the  school told me it should be falling off in the spring because it will reach it's 7 year mark.. so when i looked closer at my credit it shows a DOFD of 2009, meaning it won't fall off for 3 more years.

[RobertEG]

So the "loan servicer" is now a debt collector if they have reported a collection to the CRA.

Reporting of a DOFD is required by a debt collector within 90 days of their reporting to the CRA, so they must have a reported DOFD in your file.

FCRA 623(a)(5) sets forth very specific procedures required for reporting of a DOFD.

If the OC ever reported a DOFD to the CRA, the debt collector must report that same date.

If the OC never reported a DOFD, then the debt collector is required to contact the OC, and attempt to get the DOFD from them.  Since the debt collector in this case apparently has a close relationship with the OC, they should have no problem getting the DOFD from them.  They are required to report the date provided by the OC.

In the event that the debt collector has contacted the OC, but was unable to obtain the DOFD from them, they are permitted to make their best estimate of the actual DOFD, but in no case may they report a date later than the date they received collection authority on the account.

They cannot use their date of authority as the DOFD unless they were unable to obtain the actual DOFD from the OC, which seems hightly unlikely in your situation.

That is a fallback option only applicable if they made reasonable but unsuccesful efforts to contact the OC.

[Anonymous]

Okay thank you for your clarification, your expertise is appreciated! I will try to dispute this, using the paperwork I have from OC confirming that the correct DOFD is 2006.

I want to note that they did not have collection authority until 2009 as this is when they began to service the account. however the OC has confirmed that the correct DOFD is 2006. Do  I still have  reason to dispute, even though they did not have collection authority until 2009 on an account from 2006?.

[RobertEG]

FCRA 623(a)(5) is structured with the recognition that, since the DOFD occured under the OC account, they are the source for determining its date.

If you have clear statement from the OC of what they consider to be the actual DOFD and the debt collector has reported a different date, that gives rise to the obvious conclusion that they either did not contact the OC, or that they are knowlingly reporting an incorrect date under section 623(a)(5).

I would send the debt collector a direct dispute under FCRA 623(a)(8), asserting their reporting of an incorrect DOFD, as evidenced by the statement from the OC.

I would not dispute through the CRA, as that wont assure that your documentation is forwarded to the debt collector.

Sending a direct dispute will assure that. 

I doubt they will verify accuracy of their reporting faced with a clear statement by the OC that establishes otherwise.  If they do, you can bring civil action, and put their violations before a judge.