So I have two charge offs from Royal Credit Union back in 2007ish and one 2011 state paid lien that I have been trying to get off my CR (actually got lien deleted off experian thus far) but anyways these are my baddies. They are old and when I was irresponsible with money and credit. The baddie I am talking about today is the Royal Credit Union charge off. I called their collection department today to see if I could pay the $702.56 and get it deleted off my CR, he stated they would only update it. I asked him how long it stays on my CR, he says varies by state. The account were opened in 2005 and reported in 2011, which is a long time in between. I know that I used the acccount and never paid it (it was when I was in college). I am certain it woudl have been charged off around 2006-2007 (one account says last activity 03/06), and he confirmed that but could not give me an exact date. I feel like they reported late so it would stay on my CR for longer so that I would pay? He said that the only thing I would be able to do would pay and it would be updated as paid?? I feel like this debt has been with me since 2005 and lingering on, I wish I could pay it and it would be deleted.
What is also strange that in the information box, it states:
unpaid balance reported as a loss by credit grantor.
this is an account in good standing credit card.
charge off amount is XXX.
How can my account be a charge off but be in good standing? Are they just reporting both so that it is not closed and cannot fall of my CR? I am really confused on what I should do here? I am going to pay regardless, as that is my debt and I owe them but I feel like something fishy is going on there way. The guy could not give me exact dates and answers.
Once an account is charged-off, that can remain in your credit report even if the debt is subsequently paid.
However, the account status will remain delinquent or CO until the delinquent balance is paid, and a charged-off account is not open to further use when delinquent, so their current status of good stainding is inaccurate.
However, I would not dispute that inaccuracy at this time, as it is currently not substantive.
When a creditor reports a charge-off, they are requried to also report the date of first delinquency (DOFD) that preceded the charge-off to the CRA.
It is the DOFD, and the DOFD alone, that determines when the charge-off must become excluded from your credit report.
The exclusion period is no later than 7 years plus 180 days from the DOFD.
That exclusion period/date is not affected by any other circumstances, including any payment or lack of payment of the debt, or any other status.
With this being 06/2016, if the DOFD is 12/2008 or earlier then it should now be excluded.
What is the DOFD?
The charge off date was August 4th 2006, the guy I just talked to finally gave me some information. I feel like he thinks I am tryinig to get out of this debt, however that is not the case. I just do not want it updated as paid, I want it deleted as it has been on there for a really long time. He even agreed to me afterwards that he thinks it should be off. He said he will talk with his people that deal with the reports and get back to me today.
Credit report exclusion is NOT the determination of the creditor.
It is the determination of the CRA.
The creditor reports derogs, such as a charge-off, and the relevant date that is used to determine its exclusion.
The FCRA then places the requirment on the CRA to cease inclusion in any credit reports they issue.
Thus, the creditor is not making the exclusion decision, and has no input into when it occurs.
Excclusion of a charge-off is based only on the reported DOFD.
The only involvement of the creditor is the accuracy of their reported DOFD.
Robert you have been extremely helpful and I want to thank you!
Should I dispute this as innacurate reporting with the bureaus and give my reasonss why?
Update to this:
I spoke with RCU again and they stated that they pull TU and it is not reporting on their report. I went and checked Experian and Equifax and it is only still reporting on Experian. I disputed the CO's since the charge off date is August 4th, 2006 and it has been on my CR for nearly 10 years now. I hope I win this dispute, last baddie on experian (lien only on TU and EQ and sent Goodwill letters to both with statue of limitations on judgement debt for that state, it is a paid and release lien).
If your facts are accurate, you should win with no problem.
A charge-off has an exclusion date of no later than 7 years plus 180 days from the DOFD.
The DOFD must, by very definition of a DOFD, precede the date of their charge-off.
If they did the charge-off in 2006, then it must now be more than 7 years plus 180 days from the DOFD. You should not even need any proof of the DOFD.
Creditors dont report, and the CRAs dont record, the actual date of a charge-off.
That is an accounting action that is not relevant to your credit reporting.
When they "report" a charge-off, the date of that reporting only signifies that at some prior time they did that accounting measure.
The requirement is only that, once they have reported that they have taken a chrge-off, they must also report the DOFD to the CRA no later than 90 days after reporting that they have taken a charge-off.
Showing of ND or OK is often a backfill, and does not necessarily mean there was a positive statement that they reported the account was in good-standing.
I would not place any significance on those insertions into your payment history profile.
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