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Lates Question

BrandonLane
Established Contributor

Lates Question

I have 18 (4 @ 60 and 12 @ 30)lates on a Auto Loan. The most recent late was April 2015. The loan was opened March 1, 2009 and closed June 1, 2015. So will April 2019 be the 4 year mark and they just continue to age off as they hit 7 years?
Started 6/6/2018 EX - 588 ; EQ - 667 ; TU 575

Updated 12/2018


Message 1 of 6
5 REPLIES 5
RobertEG
Legendary Contributor

Re: Lates Question

You apparently have multiple instances of becoming late, then paying the account back into good-standing, with a subsequent occurence of a new first delinquency.

Each monthly delinquency in the same chain will become excluded at 7 years from the date of first delinquency in that chain.

 

Monthly delinquencies do not have their own, explicit definition of exclusion under any of the first four subsections of FCRA 605(a), and thus fall under the "any other adverse item of information" exclusion provision of catch-all subsection FCRA 605(a)(5). 

The CRA interpretation of the adverse item of information that begins the 7 year exclusion provision of subsection 605(a)(5) is the initial delinquency, with subsequent delinquencies in that same chain being an extension of time since the occurence of the first delinquency.  Thus, the CRAs exclude all montly delinquencies in a common chain at the same time, which is 7 years from the date of initial delinquency.

 

More specifically, they do not, for example, consider each monthly delinquency to be a new delinquency, and thus do not wait to exclude each monthly delinquency separately until each reaches 7 years from the date reported.

Message 2 of 6
BrandonLane
Established Contributor

Re: Lates Question

I believe I understand what you are saying...So they will fall off as they age (at 7 years). hahaha- Thanks. 

 

Started 6/6/2018 EX - 588 ; EQ - 667 ; TU 575

Updated 12/2018


Message 3 of 6
dynamicvb
Valued Contributor

Re: Lates Question

The string will fall when the first one gets to 7 years. So let's say you have 3 30 days followed by a 60 day. Once the first 30 day hits 7 years the 4 in the string will fall. Make sense?

Started Rebuild 4/2018: EX 616| TU 604| EQ 621

Current 5/28/20:


First Goal Score: 750+ Reached 3/2019

Next Goal all over 800
Message 4 of 6
BrandonLane
Established Contributor

Re: Lates Question

Thank you Dynamic! Smiley Happy

Started 6/6/2018 EX - 588 ; EQ - 667 ; TU 575

Updated 12/2018


Message 5 of 6
RobertEG
Legendary Contributor

Re: Lates Question

Yes, with the point being that the 7 year period for all delinquencies in the chain begins with the date of first delinquency, and thus all delinquencies in the chain will have the same exclusion date.

 

Message 6 of 6
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