When do consumer finance accounts drop off? - UPDATE

[racer-x]

Soooo, my EQ decided to start noting that I have 3 paid in full, consumer finance loans (by the same lender).

I took out a high interest rate loan in '09.  Did it again in '10 and '11.  Small amounts, $1000 each time.  It was only one loan but I re-newed it 3 yrs in a row.  I was doing this to build credit.

I also have a HSBC/Suzuki (now Cap One) loan with a balance of $533 which suddenly starting reporting as a consumer finance account.  It's my oldest, active tradeline.  So i'm just paying the minimum each month.

This tradeline reports a $15k CL.

Anyway, myfico EQ says I have 4 consumer finance accounts hurting my score.  3 of those are 3-5 yrs old, and closed.  The CapOne/suzuki is still active.

Will those 3 consumer finance accounts report for 10 yrs?  I feel like they are 3 negatives like 30 day lates or something keeping my EQ score down.  Currently a 658.  EX is 740 TU is 703.  A year ago, my EQ was 745.  My EQ has never rebounded from the app spree I went on a year ago.  Whereas EX went up nearly 100 points and TU went up about 60.  And I have a baddie on Ex and Tu, EQ is squeaky clean.  WTH?

[user5387]

You might want to look at this thread:

http://ficoforums.myfico.com/t5/General-Credit-Topics/Do-Consumer-Finance-Accounts-ever-drop-off-you...

[racer-x]

Thanks for the link.  What I don't understand is why EQ just now started using the "Conumer Finance Accounts'' tag on my report as hurting my score. 

[user5387]

If I was in your shoes, I'd try to get to the bottom of the EX / EQ discrepancy, for example by closely scrutinizing printed reports to see where they differ.  You may be dealing with erroneous information on your reports.

Another angle here would be to identify the specific scoring models used, and research how they differ in terms of what is emphasized in scoring.

[racer-x]

user5387 - I monitor my credit reports daily.  I have subscriptions for myFico EQ and EX.  I constantly cross check with Quizzle(EQ), experian.experiandirect, Credit Sesame(EX), Credit Karma(TU), etc...

The one major difference I see in EX and EQ is my AAoA.  On EX, it's nearly 6 yrs.  Ironically though, the one paid/closed baddie account that is reporting on EX was opened over 12 yrs ago.  The baddie itself is almost 2 yrs old.

My EQ and TU AAoA is 2 yrs.

I wouldn't think that AAoA is a bigger factor than a negative on a CRA.  EQ is clean.  And remember, it was a 745 a year ago.  Went on a 10 credit card app spree a year ago and never rebounded.  It was a 672 a week ago and then my BoA reported a balance increase of $12 and it dropped 14 pts.  Incredible.

INQ's are low.  6 total, 2 on each.  4 will fall off by June.

[RobertEG]

Contact the creditor and request them to delete the accounts.

The deletion of old OC accounts after 10'ish years is purely a discretionary housekeeping decision of the CRAs.

They could delete earlier, or they could remain longer.  It is not regulated under the FCRA.

Only express reporting of deleton by the creditor will remove them now.

[racer-x]

Robert- I contacted the creditor on these reporting CFA's.  The creditor is a small town lending company.  Very personable, small, family owned business.

Apparently, they have been continually reporting/updating to EQ that the accounts were closed in good standing.  She said she would stop updating the accounts to EQ.  EQ is the only CRA they report to.  I told her that the accounts would still report up to 7-10 yrs.

However, she wouldn't send a letter to EQ asking them to delete the positive TL's.  She understood what I was telling her and I even read her the definition that myfico gives concerning the CFA and how lenders look at them.

[RobertEG]

Many creditors either believe or falsely state that their is some statutory prohibition against deletion of accurate reporting.

Many debt collectors use the argument to blow off PFD or good-will requests.

You may have some talking to do to pursuade her otherwise, but the only statutory requirement is FCRA 623(a)(1), which states that any reporting cannot knowingly be inaccurate.  That is not a prohibition against deletion of accurate reporting.

No furnisher is ever required to report their account, or all information under an account.

They are free to delete their account at any time of their choosing.

There are also potential benefits to them.  Once deleted, they will never face a dispute of any information reported under the account, as no reporting can never be inaccurate reporting.  If deleted, they also have no obligation to ever report an updae should account information change.

They can mothball the account with no chance of any disputes under the FCRA.

[racer-x]

Will the deletion of these 3 paid, closed CFA's, help my AAoA?

[RobertEG]

It depends upon whether their age is greater or less than your current average age.