GM Charge-off early removal from Experian

[Eighthundredbound]

As the title implies, a settled for less GM charge-off, DFD 06/01/2014, just randomly dropped off of my Experian CR this morning. I gained 26 points and am ecstatic but also puzzled since I had not expected for this to officially fall off until 05/2021 or 02/2021 with early removal based on the DFD.

Does anyone know why this GM account might have fallen off? I'm puzzled. I haven't started and disputes at all prior to this and was simply waiting for it to age off. I checked Equifax and Transunion and this account hasn't fallen off from those CRs.

Thanks in advance for any thoughts.

[Anonymous]

@Eighthundredbound My apologies, I don't have an exact answer. There have been some reports of the various bureaus deleting negative items well before the drop off date 3-6 months or even more.

There is no real common factor, it just seems to happen sometimes.

Congrats though, hopefully Transunion and Equifax follow suit. 

[Eighthundredbound]

Thanks @Anonymous 

[RobertEG]

Removal of accounts can result from two entirely different processes.

The FCRA requires the CRAs to exclude certain adverse information from credit reports they provide to others once certain time periods have expired.  An account with an unpaid charge-off is excluded from your credit report no later than 7 years plus 180 days from the DOFD, with exclusion normally occuring at approx 7 years  from DOFD.

Exclusion is not deletion from your credit file.  The account remains, but is barred from being shown in credit reports provided to others.

A second form of removal occurs if the reporting creditor sends an actual deletion to the CRA.  If the furnisher deletes their own reporting, it is removed from the consumer's credit file, and thus from their credit report.

if an account is removed substantially earlier than the normal exclusion period, it was likely removed based on a deletion by the creditor as opposed to credit report exclusion by the CRA.  Creditors have their own internal business reasons for deleting prior reporting, such a simply to remove any continuing obligation to report updates of information, or to avoid any possible consumer disputes related to the account.

Some will also routinely delete if they sell a charged-off account.  However, the CRA advises them not to delete based solely on the consumer having paid the debt.  Nonetheless, they could choose to do so.

It is speculative as to why a specific deletion has been reported  by a creditor.  You can always call and ask if you need their reason....

[Eighthundredbound]

Hi @RobertEG  and thanks for responding.

To clarify, are you saying that an "exclusion" is still on the CR but not seen by creditors? If so, I had an account (Carmax unpaid $8902 CO) whose DFD was 01/01/2014 that was "early excluded" in July this year by TU and in October by EX (which this board advised me typically early excludes 6 and 3 months before the DFD respectively).

From what you're saying, Carmax is still on my report but neither I nor creditors can see it and additionally won't be deleted until 7 years +/- 180 days (01/2021 +/- 6/2021). Am I right? 

Also, regarding my current situation, if GM "removed" my settled CO, it's off completely; not "excluded". If so, then why didn't GM remove this settled CO from EX and EQ too? Any guess?

I know that you're giving me your best advice so I really appreciate any additional feedback. Thanks in advance.

[RobertEG]

No, excluded information is not included in a normal credit report.

The CRAs store reported information in your credit file.

Your credit report is based on your credit file, but does not include everything in your file.

Once adverse information in your credit file has reached its exclusion date, as defined under one or more of the exclusion provisions of FCRA 605(a), it becomes excluded from your credit report, but remains in your credit file.

Only information in your credit report can be seen by others, which includes those who produce a credit score.  Thus, credit report exclusion removes the adverse information from scoring impact.

However, credit report exclusion of adverse information is not absolute.

Under certain conditions, such as when a creditor makes an inquiry involving a consumer request for new credit in an amount of $150.000 or more, the normal exclusion provisions no longer apply, and the normally excluded adverse information can then still be included in a credit report provided to that creditor.  See FCRA 605(b).

Thus, the distinction between credit report exclusion and credit report deletion becomes important, as information that has actually been reported as being deleted can no longer appear in your credit report since it is no longer in your credit file.

[Eighthundredbound]

Thank you @RobertEG 

[Anonymous]

@Eighthundredbound have you check your CRs with annual credit report? Free to pull, but no scores. Reports are free to pull weekly and are great for tracking changes.

Also, TU and EX will spell out exactly when it should age off.

If DoFD 6/2014 holds true for TU, you can request EE (early exclusion) on 12/1/2020. I would check those reports.

TU will list "estimated date of removal". You can request EE 6 months prior to that date. I successfully have done this for many of mine and my SO's accounts w/ TU. Most recent was 2 baddies with an "estimated date of removal" of 5/2021. I have 1 baddie I will be EE'ing on 12/1/2020 with an "estimated date of removal" of 6/2021.

EQ will list your actual "date of first delinquency". Add 7 years to that and that is when it should age off. EQ is not EE friendly, so just let that one age off quietly.

EX will list "on record until" and has 2 months of EE built into that date, so perhaps that is why it fell off early?

I know I have accounts with varying DoFD from bureau to bureau, so that could be a possibility why, also.

Again, I would double check the reports and see what they say.

However it happened, it came off early, and that is quite exciting!

Good luck and congrats on the early removal!

---

[Eighthundredbound]

Thanks for that great advice @Anonymous