Question about Charge off's

[falcon7xx]

I have a few CO's that are on my report. I checked AnnualCreditreports.com and I noticed on the Transunion report it has remarks of when the charge off's will be deleted, but nothing on the Equifax or Experian. Also the Transunion report shows them coming off next year which would be 5 years are the fact, when I thought you had to wait 7 years?

[RobertEG]

The exclusion for charge-off reporting is no later than 7 years plus 180 days from the date of the first delinquency on the period of delinquency that led to the charge-off.  See FCRA 605(c).

The CRAs, however, routinely exclude at approx 7 years from the DOFD.

Whenever a creditor has reported a charge-off, they are required to expressly and separately report the DOFD to the CRA no later than 90 days after reporting of the CO, and it is that date that is used by the CRA to calculate the resulting exclusion date.

[falcon7xx]

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@RobertEG wrote:

The exclusion for charge-off reporting is no later than 7 years plus 180 days from the date of the first delinquency on the period of delinquency that led to the charge-off.  See FCRA 605(c).

The CRAs, however, routinely exclude at approx 7 years from the DOFD.

Whenever a creditor has reported a charge-off, they are required to expressly and separately report the DOFD to the CRA no later than 90 days after reporting of the CO, and it is that date that is used by the CRA to calculate the resulting exclusion date.

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Okay thank you. Can each CRA have different dates for removing the CO's? Is Transunion the only report that shows the estimated removal date?

[thornback]

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@falcon7xx wrote:

I have a few CO's that are on my report. I checked AnnualCreditreports.com and I noticed on the Transunion report it has remarks of when the charge off's will be deleted, but nothing on the Equifax or Experian. Also the Transunion report shows them coming off next year which would be 5 years are the fact, when I thought you had to wait 7 years?

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Are these paid chargeoffs?  If so, do you live in NY, by chance? I ask because in NY, the reporting statute for a *paid* derogatory is 5 years, not 7. 

[falcon7xx]

yes I do live in NY, so that makes sense why it is 5 years! 

[thornback]

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@falcon7xx wrote:

yes I do live in NY, so that makes sense why it is 5 years! 

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Haha yay for you!  

[falcon7xx]

That's awesome NY has the law. At this point will having the charge offs drop off my credit report help my score. I know they count less and less as the years go on, but I'm just curious if I will see a boost at the end of 2021 when they all fall off. I have 3 Charge offs right now. 

[Anonymous]

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@falcon7xx wrote:

That's awesome NY has the law. At this point will having the charge offs drop off my credit report help my score. I know they count less and less as the years go on, but I'm just curious if I will see a boost at the end of 2021 when they all fall off. I have 3 Charge offs right now. 

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Very likely you will. I'm not sure how big of a boost but yes, having a clean file should boost you up. There is a chance your scores could drop from scorecard reassignment (some people have seen that) but they'll climb back up and beyond where they are  now.

I am also in NY and in a similar situation. I have one derog reporting on all three bureaus. I've had no luck getting an early exclusion from TU (for which I'm in the window now) but EX should open up on 1/1/2021, so if I get the exclusion then, I'll post what kind of increase I see. That should at least give you an idea of the kind of ballpark gain you may see.

[RobertEG]

The shortened exclusion period of 5 years for NYS residents is set forth at :

New York State  General Business Law Section 380-j

It only applies to charge-offs and collections, and not to other reported delinquency derogs, such as reported monthly delinquencies.

They remain under the 7 year exclusion provisions of FCRA 605(a)(5).

[Anonymous]

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@falcon7xx wrote:

I have a few CO's that are on my report. I checked AnnualCreditreports.com and I noticed on the Transunion report it has remarks of when the charge off's will be deleted, but nothing on the Equifax or Experian. Also the Transunion report shows them coming off next year which would be 5 years are the fact, when I thought you had to wait 7 years?

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EX should list "on record until"

And

EQ should list "date of first delinquency", add 5 years to that since you are in NY.

They may vary. I have several accounts with varying dates, but specifically for EX, they include in the "on record until" date 2 months of early exclusion, so it should be earlier than the other 2 bureaus.