The ability to reset the FCRA drop-off date as the date of reporting a CO or CA only applies to accounts reported prior to December, 1997. That is old law. The FCRA was amended by PL 104-208 in September, 1996 by the addition of FCRA 605(c) to make it clear that the drop-off date goes back to the first delinquency on the OC account that occurred PRIOR to the collection or chargeoff activity for all reporting after December, 1997. So there are two provisions of law currently in effect, those for CO’s and CA’s reported prior to December, 1997, and all those reported thereafter. Your account collection was reported after December 1997, and thus falls under the drop-off provision of FCRA 605(c).
FCRA § 605. Requirements relating to information contained in consumer reports [15 U.S.C. § 1681c]
(c) Running of reporting period.
(1) In general. The 7-year period referred to in paragraphs (4) and (6)(2) of subsection (a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.
(2) Effective date. Paragraph (1) shall apply only to items of information added to the file of a consumer on or after the date that is 455 days after the date of enactment of the Consumer Credit Reporting Reform Act of 1996.
As a means to assure that a CA is in compliance with FCRA 605(c), section 623(a)(5) was also added, which requires that a CA must, within 90-days of posting a collection, notify the CRA of the DOFD that immediately preceded their collection activity, and this shall be the same DOFD reported by the OC.
The following FTC Staff Opinion Letters make it crystal clear that it is the DOFD on the OC account, and that the date of the CO or CA does not re-age the FCRA drop-off date of 7 1/2 years from the DOFD reported by the OC for all reporting on or after December, 1997:
Brinckerhoff-Amason; February 15, 2000
Brinckerhoff-Johnson; August 31, 1998
Brincherhoff-Kosmerl; June 4, 1999
Message Edited by RobertEG on 01-31-2009 10:29 PM
Message Edited by RobertEG on 01-31-2009 10:29 PM
