First Delinquency Date is NOT Honored by FCRA or Creditor

[Anonymous]

I've a student loan account which is presented on my report as being negative and I believe this is reported inaccurately. 

Here is what I received from US great lakes:

"Thank you for your recent email.

The Department of Education suggests that servicers wait to report delinquencies when a borrower’s account reaches 60 days past due. However, to give our borrowers the most time available to bring their accounts current, our policy is to wait until a borrower’s account is 90 days past due to report delinquencies to the nationwide Credit Reporting Agencies (CRAs).  Please note that this policy is subject to change at any time. Additionally, please keep in mind that it is possible for a borrower’s account status to be reported as delinquent anytime it reaches 30 days or more past due."

Date Reported: 10/2010 90 Days, 11/2010 120 days

The first date of delinquency is not reported on my report and therefore all three CRAs stated they can only remove what is reported on the report which is the 90 days. 

So now I have to wait until October so that it reports as a positive entry. I have been making payments on this account since 12/2010 and still paying in a a timely manner. 

Is there anything I can do so they report this accurately? I've disputed this few months ago, but remarks state that it is accurate.

 Thanks in advance.

[Anonymous]

It is reporting accurately.  Your first 30 day delinquency isn't reporting.  If it were, it would be removed in August.  Your 60 day isn't there, but would theorectially be removed in September.  Once October hits, that first 90 day will fall off.

[Anonymous]

But shouldn't they count the first day of delinquency instead of the 90 day? 

I need second opinion on this because the response from the previous poster didn't make sense. 

[medicgrrl]

DOFD refers to accounts that went into default. For individual late payments, they are removed with each occurrence. Had they reported the 30 and 60 day late payments, then those would each have been removed individually as those dates became 7 years since the late. If your account is not showing as defaulted on the credit report, then they are reporting accurately

[Anonymous]

Should they report the first DOFD? Isn't that the legal FCRA rule of thumb? Why are they reporting the start of 90 day?

[medicgrrl]

Are the accounts showing as in default? DOFD only applies to accounts that are showing as in default.

[Anonymous]

Its listed as adverse negative account, it doesn't show as default. After the 120 days missed payment back in 2010, I've been making payments on time.

[RobertEG]

The ONLY use of date of first delinquency in credit reporting is the determination of when a charge-off or collection becomes excluded from a consumer's credit report.

In the posted scenario, only monthly delinquencies are reported, and thus, by very definition, there IS NO DOFD.

FCRA 605(c) provides the definition of what is referred to as DOFD.

It is the date of the first delinquency in the most recent chain of account delinquencies that preceded a charge-off or collection.

If there is no charge-off or collection, then there is no DOFD.

To further clarify, FCRA 623(a)(5) defines when and how a DOFD must be reported to a CRA.

It is only required after reporting of a collection or charge-off.  Once a collection or charge-off has been reported, the furnisher must obtain and report the DOFD on the original creditor account to the CRA no later than 90 days after reporting of a collection or charge-off.

The CRA then must monitor the reported DOFD and exclude the reported charge-off or collection no later than 7 years plus 180 days from the reported DOFD.

See FCRA 605(c) and 605(a)(4).

A reported 90-late, for example, does not require any associated reporting of a DOFD.  Three is no DOFD (and thus no requirement to report a non-existant DOFD)  unless there is also a charge-off or collection.

Monthly delinquencies are each individually excluded no later than 7 years from their individual dates of occurence.  See FCRA 605(a)(5).

HOWEVER, it is noted that the post relates specifically to a federal student loan.

Federal student loans are NOT covered by the exclusion periods provided under the FCRA.

The Higher Education Act explicitly exempts derogs reported for federal student loans from alll of the normal FCRA exclusion periods.

See the footnote appended to FCRA 605(a) for reference to the applicable provisions under the Higher Education Act.

In a nutshell, the Higher Education Act extends the exclusion periods for derogs reported on federal student loans beyond the periods set forth under the FCRA until the loan is paid.