Charge offs reporting limit

[Anonymous]

Hi everyone, I'm looking for a clarification on how exactly does the 7-year reporting limit affect charge offs. I have an old credit card that I for wavrious reasons couldnt pay off. The card was opened in Feb 2012. Last payment made was on Nov 2014 and its been charged off in May 2015. The lender is reporting like this:

Dec 2014: 30

Jan 2015: 60

Feb 2015: 90

Mar 2015: 120

Apr 2015: 120

May 2015: FP

Since May 2015 every month till now - Sept 2019 its listed as FP. 

When the 7 years are up, in May 2022, will the entire history just fall off or will they keep updating FPs forever? So by 2022 I'll see my history from 2019 to 2022 full of FPs?

Also, it says "Status updated: May 2015" and "Balance updated: Sept 2019" Will the balance ever stop being updated?

Thanks so much for all your replies.

[Anonymous]

The entire account should fall off Dec 2021. The creditor/collector can update it every month from now until then. Some do some don’t. Usually if they are actively trying to get you to pay they will continue to update.

[FireMedic1]

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@Anonymous wrote:

Hi everyone, I'm looking for a clarification on how exactly does the 7-year reporting limit affect charge offs. I have an old credit card that I for wavrious reasons couldnt pay off. The card was opened in Feb 2012. Last payment made was on Nov 2014 and its been charged off in May 2015. The lender is reporting like this:

Dec 2014: 30

Jan 2015: 60

Feb 2015: 90

Mar 2015: 120

Apr 2015: 120

May 2015: FP

Since May 2015 every month till now - Sept 2019 its listed as FP. 

When the 7 years are up, in May 2022, will the entire history just fall off or will they keep updating FPs forever? So by 2022 I'll see my history from 2019 to 2022 full of FPs?

Also, it says "Status updated: May 2015" and "Balance updated: Sept 2019" Will the balance ever stop being updated?

Thanks so much for all your replies.

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Who's the creditor and the amount. FP=failed to pay. Which is true. First string was 12/14 and continued. Never caught up. Fall off 2021. Closer to falling off is when they may get antsy and get more serious about collecting on it. The date is called the "original delinquency date," or sometimes the "date of first delinquency." If you have a late payment and never bring the account current, it will eventually be written off as a loss. The debt then could be sold or transferred to a collection agency. In this case, the entire account will be removed seven years from that original delinquency date, along with the subsequent collection account. After it falls off you cant be sued but they can still try to collect.

[Anonymous]

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@Anonymous wrote:

Hi everyone, I'm looking for a clarification on how exactly does the 7-year reporting limit affect charge offs. I have an old credit card that I for wavrious reasons couldnt pay off. The card was opened in Feb 2012. Last payment made was on Nov 2014 and its been charged off in May 2015. The lender is reporting like this:

Dec 2014: 30

Jan 2015: 60

Feb 2015: 90

Mar 2015: 120

Apr 2015: 120

May 2015: FP

Since May 2015 every month till now - Sept 2019 its listed as FP. 

When the 7 years are up, in May 2022, will the entire history just fall off or will they keep updating FPs forever? So by 2022 I'll see my history from 2019 to 2022 full of FPs?

Also, it says "Status updated: May 2015" and "Balance updated: Sept 2019" Will the balance ever stop being updated?

Thanks so much for all your replies.

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Here is some more information directly from Experian if you are interested in how/when an account like yours will drop off. Since your account became late on Dec 2014 and never was brought current then the Date of first delinquency is Dec 14’. 

+7= Dec 21’

https://www.experian.com/blogs/ask-experian/how-to-determine-accounts-original-delinquency-date/

How to Calculate When An Account Will Be Removed From The Report

The original delinquency date applies to the first late payment in a series. So, if a payment is late today but next month the account is brought current, seven years from today that late payment would be deleted, but the account would continue to be reported with the more current payment history.

However, if an account were to become late today, the payments were never brought current, it was charged off as bad debt, closed and sent to collection, then the original delinquency date would be today's date. Even if the bad debt was eventually paid, seven years from today's date, the closed account and the subsequent collection account would be deleted.

[RobertEG]

While it is stated in the post that the creditor did a charge-off, which was likely mandated under federal regulations, it is not stated that the creditor chose to report the charge-off to the CRAs.  The posted payment history profile record of prior lates only shows the reporting of monthly delinquencies, and not the explicit reporting of a charge-off.

Yes, FCRA 605(c) mandates that any reporting of a charge-off must be excluded from a consumer's credit report no later than 7 years plus 180 days from the reported date of first delinquency.

However, that exclusion provision does not appear to apply to the posted scenario, as there is no apparent reporting of the charge-off to the consumer's credit file/report.

The applicable exclusion provision is thus apparently the exclusion only of reported monthly delinquencies.

FCRA 605(a)(5) is the applicable exclusion requirement, which is the catch-all exclusion provision that applies to "any other adverse item of information," which is separate from the exclusion of a reported charge-off.  Section 605(a)(5) is a catch-all provision that does not explicitly make any reference to date of first delinquency, or of what date defines the begin date for the exclusion of monthly deliquencies.

It is thus subject to interpretation, which has not been consistent amongst the big-3 CRAs.

The FCRA does not explicitly define that all montly delinquencies in a common string become excluded 7 years from the date of first delinquency.  One CRA (i.e., Exp) has a clearly posted policy statement that they interpret the 7 year exclusion provision stated in sectin 605(a)5) to mandate exclusion of all reported monthly delinquencies in a common string after 7 years from the date of first delinquency, but the other two CRAs dont have such a clearly posted policy, and will often exclude each monthly delinquency separately once it individually reaches 7 years.

You can thus rely upon exclusion of the entire string of consecutive delinqencies by Exp after Dec 2021, but may get different results from the other two CRAs.  It is not currently a clearly established interpretation of the FCRA as to when exclusion of montly delinquencies must occur, and the big-3 CRAs have a different history of interpretation of the exclusion of montly delinquencies.