If an account is closed on 1/1/12 and charged off 1/1/16 when will it fall off?

[Anonymous]

I searched and found dozens of conflicting answers.  

Last payment on open account-  09/11

Account closed-  1/12

One payment- 8/13

Charge off- 1/16

Bank says 7 years after 1/16 on one report, 10/20 on next and 8/20 on third.  Last spring a couple of them showed 09/18 but they updated that last fall to new dates?

Thank you!

Thank you!

[Anonymous]

Date of first delinquency that lead to the charge off.

So look at your report, see where it says 30 day late, 60 day, 90 day, 120 day, CO. The date of the 30 day late, 7.5 year from that date.

[RobertEG]

The FCRA was specifically amended over two decades ago to clearly define a single date-certain for exclusion of a collection or charge-off.

It is defined under FCRA 605(c) as no later than 7 years plus 180 days from the date you first became delinquent in the chain of delinquency that let up to an included the date that the debt was charged-off.

There is NO ambiguity in the statute, and other dates such as last payment date, date closed, date they took or reported a charge-off, are all irrelevant.

When a creditor has reported a charge-off, they are then explicitly required under FCRA 623(a)(5) to also report the date of first delinquency (DOFD) to the CRA no later than 90 days after reporting of the charge-off, so the DOFD will be of record in your credit file.

If the commercial credit report you are viewing does not show the DOFD, then check your free report at annualcreditreport.com.

[coreysw12]

2 questions:

Was the account closed by you, or the creditor?

Why was the chargeoff 4 years after the closure? Typically a C/O would happen withoun 120-150 days of when you stopped paying. Did you continue occasional payments after the account was closed?

[Anonymous]

It was closed by them.  I used "round" numbers in my explanation.  It was exactly two years from closed to charged off.  Last payment was three months before closed, per my records.  their DOFD is appx. 21 months after that.

I have the date of DOFD, the funny thing is each credit report reports a different date LMAO.  Not only that but it has changed over the years, now at least 3-4 months after what it was last spring.    

It is like they drop the late payment and move the DOFD forward every couple months.  Like I have no late payments 7 years ago, they start 6 1/2 years ago, a few months before the charge off (and two years after they closed for non-payment).  So they are saying I was current when I wasn't paying.  I called and they were unable to give me when I paid and the amounts basically could just tell me I was current one month and 120 days past due next month.

Thanks!  Gotta love USAA...

[RobertEG]

The date that a creditor actually took a charge-off is not reported to the CRAs and is not stored in your credit file.

The CRAs do not provide a code for storing the date that a creditor took that accounting measure.

A creditor can choose to report the fact that they took that accounting measure at any time after they took the charge-off.

The date they report as CO is only the date they first decided to report that fact to the CRA.  It is not a reporting of when the took the CO.

There is nothing per se inaccurate in first reporting a CO many months or even years after they took the CO (or in fact, never reporting that they took a CO).

If you feel that the DOFD that is being reported or updated is inaccurate, you can dispute its accuracy and require the creditor to investigate, and the CRA to reinvestigate, its accuracy.

Simply attach your account records showing when it first became delinquent, and then that it constantly remained delinquent up to the time that it was charge-off, or first reported as having been charged-off.  

Similarly, if any monthly reporting of prior status under payment history profile is inaccurate, you can file a dispute of its accuracy.

However, it is advised that you take caution in disputing incomplete payment history profile if the likely outcome is the addition of derogs for each and every month since initial delinquency, which would then provide a consistent and complete profile.

Payment history profile disputes often result in addtion of delinquencies, which are usually not desirable.....

[Anonymous]

Thank you!  I believe I understand now, the hard part will be getting USAA to fix their mistakes.  I just spoke to the credit report reps, they say when I have some evidence and the reporting company has other evidence they go with the company and referred me to the CFPB.

They have already been disputed and Equifax shows 7y180d ago they showed 120 days past due per the "newest updated reporting".  Then they began reporting as CLS for about a year until 4 months before charge off then they went to 30,60,90,120 charge off.  the "new" DOFD is 150 days prior to charge off.   Of course, each credit report shows something different.  I printed all and submitted to the CFPB with the divorce decree ordering I was not responsible for the debt. (which the CFPB said is a state matter but **bleep**).  I showed how the DOFD has changed over time, and how it reset due to her name being taken off the account. 

The interesting thing is the DOFD is roughly the date of the financial order from the court and her bankruptcy.  I guess that removing her name triggered a new DOFD (of course, since the bankruptcy was before the divorce, they should have removed my name and added hers on the divorce date but that's a different matter LMAO).  USAA can't even say if or when her name was taken off, they say that information is purged when name comes off.  I remember when USAA was the best company back before it expanded in the late 90s so the CEO could justify higher pay...

[RobertEG]

The date that the account became delinquent is a date-certain that is not related to other account issues pertaining to responsibility for the debt under any divorce decree or BK filing.

A divorce decree does not remove continued contract responsibility of either spouse for debt that was incurred during the marriage.

It is a separate civil issue that defines only who has continued responsibility, which then can provide a former spouse with basis to bring civil action against the other former spouse for any violation of that court order.  A divorce decree is not binding on the original creditor, and does not alter the contract that they entered into with the two spouses.

Creditors do not routinely remove the name of consumer B from an account contract based on subsequent grant of a divorce decree or a BK.

[Anonymous]

USAA has told me that it removed her name (and responsibility) for the debt and account due to her bankruptcy and made me solely liable for the debt. 

SC state law is clear that it can remove or deem one party solely responsible for any marital debt in divorce proceedings.  Each state has its own laws, and the creditors are required to follow them.  

Every other creditor followed SC law and removed me from her debts (and her from mine as assigned by the court).  USAA even removed me from the home and auto insurance in arrears (that were not covered by the bankruptcy).  

If the account isn't a joint account, then one party is required to pay it off.  Since bankruptcy took the joint account and made it mine, then divorce took the "joint" account and made it hers...  but since USAA removed the joint account status "illegally" since the divorce court had jurisdiction over the bankruptcy... 

Basically, USAA just bent me over and forgot the lube.  And yes, my ex does hold some liability too, and I do for not paying her bill after the divorce to keep my good credit.   Anyways, your advice is quite good overall, and like I told USAA, I don't expect them to know every single state's laws...

But these laws are kind of irrelevant.  It would cost me way too much to file suit in at least three different states, and then still likely file suit against USAA to get them to comply with the SC law...