Early Exclusion in New York Question

[Anonymous]

Hi, trying to figure out exaclty how this works.  I have a collection that was assigned in Dec 13, 2013 for $441.  I was getting ready to try to settle for half.  Can I do early exclusion after I pay it, 5 years won't be until December though.  

[RobertEG]

New York has set a shorter exclusion period for collections, charge-offs, and judgments if they are paid.

It reduces the normal 7 year exclusion period set under FCRA 605(c) to only 5 years.

After paid, send a request to the CRA along with proof of NYS residency to the CRA, and request exclusion of the paid collection under the provisions of section 380-j of the New York State General Business Law.

As a side note, exclusion of collections and charge-offs are based on the date of first delinquency (DOFD), and not the date of assignment to the debt collector.

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New York State  General Business Law Section 380-j

“(f)(1) Except as authorized under paragraph two of this subdivision, no consumer reporting agency may make any consumer report containing any of the following items of information.

(i) bankruptcies which, from date of adjudication of the most recent bankruptcy, antedate the report by more than fourteen years;

(ii) judgements which, from date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period;  or judgments which, from date of entry, having been satisfied within a five year period from such entry date, shall be removed from the report five years after such entry date;

(iii) paid tax liens which, from date of payment, antedate the report by more than seven years or, a paid, satisfied or vacated tax lien involving a purchaser, transferee or assignee in a bulk sale transaction who has been deemed liable by the state tax commission for sales taxes due from a seller, transferrer or assignor under subdivision (c) of section eleven hundred forty-one of the tax law, where the receipt by a credit reporting agency from such purchaser, transferee or assignee of a notice, or true copy thereof, from the state tax commission to such purchaser, transferee or assignee that his liability has been wholly paid or satisfied or no longer exists, antedates the report by more than thirty days;

(iv) accounts placed for collection or charged to profit and loss which antedate the report by more than seven years;  or accounts placed for collection or charged to profit and loss, which have been paid and which antedate the report by more than five years; “

[Anonymous]

Thank you!!!

[rprisco]

OP your question also indicated that you would be trying to settle the debt.  I have read over the last year, also being in New York, how to avoid the 7 years.  The main question is does NY General Business law also allow for early exclusion for "settled" verses "paid in full" accounts?  It seems NY does not deferentiate between settled and paid in full, no matter how a zero balance is achieved, the tradeline must be removed at year 5 from date of original deliquency ("OD") once a zero balance is owed.  It is most important both you and the credit bureaus have the correct dates of OD and the bureaus know the amount owed is ZERO. 

I am in almost the same boat.  I have three paid charge off's and the five year mark from date of OD evidences that starting in October through December all my charge off's should be removed.  However, when I look at the credit report from Experian, it reports a removal date of 2020 for 2 of the accounts and no date for the other and Transunion shows no removal dates (equafax is totally clean).  Clearly the reports need to be updated.

I would start now making sure the CRA's have the correct dates of OD and let them know you are a NY resident by sending a copy of your driver license and utility bill.  If you have any proof of the OD date, you might want to send that too, that is what I am doing starting now. I am sending via certified mail so I have a record.  (Once you pay in full or settle make sure that updates the CRA's and if not dispute and send proof of zero balance).  Once I know all those dates are correct with the credit bureaus and they know I am a NY resident (in my case all 3 charge off's report as paid after charge off), I will send good will letters to each creditor letting them know no further good can come from continuing to report, that I am truly sorry,  I learned my lesson, time to move on etc etc.  If that dont work, I plan to contact both Transunion and Experian monthly once I hit the less than 6mo mark and ask for early exclusion.  Transunion removed my BK 6mos early and Experian removed it 30 days early and Equifax 90 days early.  I have been real fortunite and have learned allot here and am so grateful I live in NY.   

IMO, I think you might want to consider paying for deletion by asking if they will delete upon accepting your payment. Be appoligetic, and nice when talking to them (kiss their buts).  If they say yes, get it in writing and If they say NO deletion, I'd say they can kiss yours,   I think you have a good bargining chip to ramp up the hard ball game.  Technically you could make them wait for payment until the very last day of the 5 year mark, send your receipt for payment to the CRA's and the account will be required to be deleted anyway, so why not agree to delete now for payment or settlement now.  You may get lucky. 

Let us know how you make out.