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Derogatory - am I understanding this wrong?

MYMV
New Member

Derogatory - am I understanding this wrong?

Hello,

 

I did not find a topic with these exact circumstances, but my apologies if I missed something and this is a repeat.

 

I have been rebuilding for awhile, following loosy-goosy the advice on here. I am dealing with one specific deragotory that it seems to me is reported in correctly, but I may be misunderstanding the rules. Thank you in advance for your help.

 

I opened an AmEx Blue (I believe) with miles on May 17, 2013. Maxed it out within a couple of months and then defaulted on it. I believe it was closed and charged off by AmEx around Oct/Nov 2013. I believe it was $1000 limit.

At some point, I contacted them and paid in full the $1200 or so balance.

Here comes the predicament:

They are reporting it as paid, was charge off, as of Oct 16, 2016. Now I still have to find the paperwork, but I am pretty sure that's the date I called them and paid it off.

My understanding is that they are supposed to report it for seven years (or +180) from the date of first delinquency. That would mean July or August of 2013. If you count first default, that would be Oct/Nov 2013. However, they are reporting the OCt 16, 2016 date.

In addition, I just realized that Experian reports it, but the TransUnion report I pulled in Dec 2021, doesn't.

 

If I am right, this should have been completely gone.

If I am wrong, it falls off next year, but I will likely need to apply for significant loans soon and I hope I can get rid of this last relic of my shameful spending past Smiley Happy.

 

Please let me know your thoughts.

Message 1 of 7
6 REPLIES 6
dragontears
Senior Contributor

Re: Derogatory - am I understanding this wrong?


@MYMV wrote:

Hello,

 

I did not find a topic with these exact circumstances, but my apologies if I missed something and this is a repeat.

 

I have been rebuilding for awhile, following loosy-goosy the advice on here. I am dealing with one specific deragotory that it seems to me is reported in correctly, but I may be misunderstanding the rules. Thank you in advance for your help.

 

I opened an AmEx Blue (I believe) with miles on May 17, 2013. Maxed it out within a couple of months and then defaulted on it. I believe it was closed and charged off by AmEx around Oct/Nov 2013. I believe it was $1000 limit.

At some point, I contacted them and paid in full the $1200 or so balance.

Here comes the predicament:

They are reporting it as paid, was charge off, as of Oct 16, 2016. Now I still have to find the paperwork, but I am pretty sure that's the date I called them and paid it off.

My understanding is that they are supposed to report it for seven years (or +180) from the date of first delinquency. That would mean July or August of 2013. If you count first default, that would be Oct/Nov 2013. However, they are reporting the OCt 16, 2016 date.

In addition, I just realized that Experian reports it, but the TransUnion report I pulled in Dec 2021, doesn't.

 

If I am right, this should have been completely gone.

If I am wrong, it falls off next year, but I will likely need to apply for significant loans soon and I hope I can get rid of this last relic of my shameful spending past Smiley Happy.

 

Please let me know your thoughts.


If you paid it in 2016 than the last reported date is correct. EX does not list the DOFD on reports given to consumers, instead they list a removal date. Only EQ will list the actual DOFD on consumers reports. 

You need to look at your reports to see what the removal date is.

And as a note, just because it is not on TU, doesn't really mean anything; you can't contact EX and get them to remove information solely based on it not being on the other CRAs.

Message 2 of 7
MYMV
New Member

Re: Derogatory - am I understanding this wrong?

Thank you.

I wasn't planning to ask for removal based on TU.

So: There is no record of any derrogatores on TU or EQ.

AnnualCreditReport is unable to pull Experian, so I am waiting on a reponse as to why.

I have a free account with Experian and that's where the AmEx is still reporting.

It only says:

Date opened: May 17, 2013.

Account Status: Closed

Payment Status: Paid, was a charge-off.

Status updated: Oct 2016

Balance updated: Oct 16, 2016.

Credit Limit: 1000

Payment HIstory says Charge off Oct 2016

Comments: Account closed at credit grantor's request

 

 So did me paying it, reset the clock on the Charge-off?

 

 

Message 3 of 7
vntrsc
Frequent Contributor

Re: Derogatory - am I understanding this wrong?

A payment would reset the SOL for collection activities such as a lawsuit to recover the balance.

 

It would not reset the SOL for reporting.  The reporting period is based on delinquency/default of a current account.  Payments made on an account that is already delinquent do not reset the reporting period.

 

Failing to make a timely payment on a current account becomes the "date of first delinquency" (DOFD) and the 7-year period begins.  If you bring the account back to a current status, that DOFD does not change unless you again fail to make a payment.  After bringing an account current, failing to make another payment results in a new DOFD.  Note that once an account is charged off, it can never be brought back to a current status, so the DOFD cannot ever be changed.

Message 4 of 7
MYMV
New Member

Re: Derogatory - am I understanding this wrong?

Thank you so much.

So should I contact AmEx direct and ask them to stop reporting it?

The date of DOFD should be the summer of 2013 when I became delinquent.

Account was closed in 2013, so when I paid it in 2016, I did not re-open it and could not have been late again and created a new DOFD.

Therefore, this should have stopped being reported in 2020.

 

 

Message 5 of 7
FireMedic1
Community Leader
Super Contributor

Re: Derogatory - am I understanding this wrong?

Look at your reports. The first late that led to the charge off is the DoFD. Once CO'ed. Thats the end point. Since its been paid off after CO status. The DoFD stays the same and isnt reset. So if its more than 7yrs since the DoFD. Dispute it as too old on the CRA its showing on. That should be the end of it. Paying off a CO doesnt reset the DoFD.




Homeowner since Sept 2020. Sharing my experiences after BK from learning here. Rebuild to recovery from the @ 540's.
Message 6 of 7
OmarGB9
Community Leader
Super Contributor

Re: Derogatory - am I understanding this wrong?


@MYMV wrote:

Thank you so much.

So should I contact AmEx direct and ask them to stop reporting it?

The date of DOFD should be the summer of 2013 when I became delinquent.

Account was closed in 2013, so when I paid it in 2016, I did not re-open it and could not have been late again and created a new DOFD.

Therefore, this should have stopped being reported in 2020.

 

 


I would just dispute with EX directly as "too old." If you have documentation of the first missed payment/subsequent missed payments that led to CO, all the better because you can upload those along with your dispute. 


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