After Dispute Maturity date Updated ?? Why?

[Anonymous]

Hello All, 

I need some help on trying to figure this issue i'm havin out. I searched the internet and I can't seem to find an answer. I disputed a collection account that I did not recognize and it also didnt have much information as far as conact info for the creditor. When the results came back,  experian said basically that  IF there was information to be updated, they would do so. Well when I reviewed my account after that the only thing I see updated is my date its supposed to come off my credit report! the account added 3 more years onto the account and I dont know why. I have not made any payments or promises to do so, so how is this possible?... Im so confused. If anyone can shed some light on this issue for me I'd appreciate it !

Thank you 

[bass_playr]

Some specific details may help us to better understand.  The time allowed for credit reporting on a debt begins when the account first becomes past due---and clearly, that date cannot change unless you pay off the past due balance in full and the account is still open for your use.  First question I would have is do you know when the account first became delinquent?  

[RobertEG]

Payments are irrelevant.

Any collection must be excluded from your credit report no later than 7 years plus 180 days from the date of your first delinquency on the OC account. No other date is relevant to its exclusion.  See FCRA 605(c).

The CRAs have the full 7 years plus 180 days, but normally choose to exclude at approx 7 years from DOFD.

The CRAs dont infer the DOFD from other reported information.  Rather, FCRA 623(a)(5) requires the debt collector to separately and explicitly report the DOFD to the CRA no later than 90 days after reporting of their collection.  The DOFD is then used by the CRA to determine the exclusion date.  

There is a set procedure outlined under the FCRA that must be followed in obtaining and reporting the DOFD.  That three step process is outlined in detail in FCRA 623(a)(5), and in a nutshell is:

(1) if the creditor is reporting their account to a CRA and has reported the DOFD to the CRA (which, for example, they are required to have done if they have reported a charge-off, or voluntarily may have done if they have reported any prior monthly delinquencies), then the procedure permits the debt collector to assume the same DOFD, and may report that DOFD to the CRA without any need to contact the creditor;

(2) If there is no current DOFD being reported by the original creditor, the debt collector is required to attempt to contact the creditor and request that the creditor provide them with the DOFD on their account;

(3) if steps (1) and (2) have not provided the DOFD, the debt collector is then permitted to make their best estimate of the DOFD, but in no case may then assume the DOFD to be later than the date they obtained collection authority.

It is possible under the above statutory reporting procedure that the debt collector may have initially complied with the procedure, such as by reporting the same DOFD as previously reported by the creditor, or assuming the DOFD after an unsucessful attempt to contact the creditor, but later obtains updated or more accurate info that leads to a required update in the DOFD.

If a debt collector obtains updated info that is clearly more correct, they are then required under FCRA 623(a)(2) to promptly report that update to the CRA.

It is likely, and permissible, for the debt collector to have initially reported a DOFD, and then later updated that reporting if/when more accurate info became available.

While a debt collector cannot knowingly report an inaccurate and later DOFD in order to extend the exclusion period, they are required to report any update if they have reasonable basis for determining that prior reporting is no longer accurate.