Hi all,
I have been reading through the forums and after reading the following post I think I am misunderstanding COs:
https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Charge-off/m-p/6014028
I have two CO accounts that say "on record until" Nov or Dec 2020 (depending on which bureau I am looking at). I thought that the late payments stop reporting first and then I had to wait 6 months until the CO fall off? Or do the CO accounts fall of all together Nov or Dec 2020? If that is true, y'all have made my year!
Also, I may be able to call TransUnion and get them taken off now since I am within the 6 months like @Anonymous said? Experian is 3 months before and Equifax is 1 month before? I am sorry I am asking so many questions, I just want to confirm because this information has made my night!
@RobertEG wrote:
Reporting Limits under the FCRAThis is a summary of the provisions of the Fair Credit Reporting Act (FCRA) as it relates to how long negative (derogatory) information may be reported by any creditor to a CRA, and thus affect credit scores.
(Source: www.cardreport.com/credit-problems/time/html)
Making payments or partial payments on bad debts does not effect the running of the credit reporting time limits, except in the case of tax liens and federal student loans. All other types of items should expire on schedule, based on the original dates, regardless of when or whether they are paid. There was previously a great deal of confusion over the starting point, which could have been interpreted as the date of the last activity on the account. This resulted in the possibility of "re-setting the clock" on an old bad debt by making a payment on it, or by paper-shuffling on the part of collection agencies. The issue was clarified in the 1996 amendments to the FCRA, which set a specific starting date that is now SET BY LAW as the last deliqency date, and not later dates, such as a DOLP.
FCRA Section 605:
(c) Running of reporting period.(1) In general. The 7-year period referred to in paragraphs (4) and (6) ** 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.
Inquiries - Two years. However, while inquiries may continue to report under the FCRA for up to two years, the FICO scoring model does not include them in scoring calculations after one year.
Late Payments - Seven years from the month in which the late payment was due. If there are multiple late payments in one account item, then they will each expire individually.
Charge-Offs - Seven years. The time runs from the date of the delinquency, plus 180 days. For example, if a payment was due on an account on January 1, 2001, but the debtor defaulted, and never caught up to become current again, and the account is eventually declared a charge-off by the creditor, then the seven year reporting time limit starts running on July 1, 2001, with the item scheduled to expire from his/her credit reports on July 1, 2008.
Collection Accounts - Seven years. The running of this time limit is the same as with charge-offs. The date of delinquency still refers to the original delinquency with the original creditor, regardless of when the collection agency began calling for payment of the debt. Collection agencies cannot legally "re-set the clock." FCRA 605.c.1.
Lawsuits And Judgements - Seven years or until the governing statute of limitations has expired, whichever is longer.
Bankruptcy - The FCRA permits a CRA to continue to report all bankrupties for ten years from the date of entry of the order for relief or the date of adjudication. Chapter 7 (liquidation) bankruptcies remain for 10 years. Chapter 13 (payment plan) bankruptcies may be deleted by some CRAs after 7 years, but it is at their discretion.
Paid Tax Liens - Seven years from the date of payment of the lien.
Unpaid Tax Liens - Forever (unless paid, then 7 years from lien payment)
Unpaid Federal Student Loans - Forever (unless paid, after which they can appear for seven years.)
Exceptions:
The above time limits apply to credit reports which would be available to creditors for most types of credit applications. However, the credit bureaus are legally permitted to disclose older information in the following situations:A credit application involving a principle loan amount of $150,000 or more.
An application for a life insurance policy with a payout of $150,000 or more.
An application for employment in a position paying $75,000 per year or more.
https://www.consumer.ftc.gov/articles/pdf-0111-fair-credit-reporting-act.pdf
@AllZero wrote:
@RobertEG wrote:
Reporting Limits under the FCRACharge-Offs - Seven years. The time runs from the date of the delinquency, plus 180 days. For example, if a payment was due on an account on January 1, 2001, but the debtor defaulted, and never caught up to become current again, and the account is eventually declared a charge-off by the creditor, then the seven year reporting time limit starts running on July 1, 2001, with the item scheduled to expire from his/her credit reports on July 1, 2008.
This is the part that still confuses me and I'll tell you why. Looking at my TransUnion report it looks like my last payment was made on February 2014 and then the account became late and was charged off. However, the report says my item will be removed on Nov 2020. From the language above, it seems like my item should not be removed until Sep 2021. Unless "expired" and "removed" are two separate actions?
@Anonymous wrote:
@TaylorTaylor wrote:Hi all,
I have been reading through the forums and after reading the following post I think I am misunderstanding COs:
https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Charge-off/m-p/6014028
I have two CO accounts that say "on record until" Nov or Dec 2020 (depending on which bureau I am looking at). I thought that the late payments stop reporting first and then I had to wait 6 months until the CO fall off? Or do the CO accounts fall of all together Nov or Dec 2020? If that is true, y'all have made my year!
Also, I may be able to call TransUnion and get them taken off now since I am within the 6 months like @Anonymous said? Experian is 3 months before and Equifax is 1 month before? I am sorry I am asking so many questions, I just want to confirm because this information has made my night!
EX builds into the "on record until" date 2 months of EE, which makes it a bit confusing. Meaning you can ask for EE from EX 1 month prior to that date. This makes it 3 months EE. You still need to use DoFD (the first late in the string of lates that led to the end of the account in derog status (CO, etc.) to determine drop off date and not the "on record until" date to determine when an account falls off because this has mislead some to think 1 or the other 2 bureaus have the drop off date listed incorrectly.
TU will have "estimated date of removal" listed. You can request EE 6 months prior to that date. Do not base it off EX "on record until" date. Again, go by DoFD.
EQ does have 1 month EE but they love to make a mess of things, so I would just wait for it to naturally drop off. Some have reported 1-4 months early drop off. You can deyermine natural drop date by adding 7 years to the "date of first delinquency" the have listed.
Good luck!
TU lists removal date at 11/2020
EX lists on record until 12/2020, DOFD isn't listed. It has a 60 day late at Mar 2021, but no 30 day late listed.
EQ list DOFD as 12/1/2013
I called TU and they just put in a dispute for me, so I will have to wait.
Thanks for your information.
If the chargeoff has not been reported regularly, the dispute will cause a score drop regardless of what is reported back as it will refresh the reporting. The only way it will benefit you is if the lender doesn't respond and it's removed. To do an EE, you need to call in and speak with a supervisor and request EE specifically.
Not sure why you would submit a “dispute” to TU if that is in fact what you did or if you have just used that term to indicate you requested an early exclusion of the account.
I had two CO accounts that I previously paid and settled scheduled to drop in November 2020.
They both fell off in July from all 3 CRAs.
Unless there is a just reason for needing them off early as in you need to app for something I would expect they will drop early on their own but certainly within the time period expected.
I prefer to leave those sleeping dogs alone and let time do it’s thing.
In my history with my two Cap1 COs I had trouble with one of them being correctly updated to 0 balance and when It finally did I took another hit with Equifax based on change in status date.
@satio wrote:Not sure why you would submit a “dispute” to TU if that is in fact what you did or if you have just used that term to indicate you requested an early exclusion of the account.
The person I spoke to on the phone said that she would need to put in a dispute in order to do an EE.
I am trying to get things removed as soon as possible to improve my credit by December because there are a lot of changes going on with my family in regards to employment and living arrangements within the next few months.
@Brian_Earl_Spilner wrote:If the chargeoff has not been reported regularly, the dispute will cause a score drop regardless of what is reported back as it will refresh the reporting. The only way it will benefit you is if the lender doesn't respond and it's removed. To do an EE, you need to call in and speak with a supervisor and request EE specifically.
The account was still being reported regularly. I guess I should have asked to speak with a supervisor, but the person I spoke to made it sound like I had to do a dispute in order to get EE.
TU lists removal date at 11/2020
EX lists on record until 12/2020, DOFD isn't listed. It has a 60 day late at Mar 2021, but no 30 day late listed.
EQ list DOFD as 12/1/2013
I called TU and they just put in a dispute for me, so I will have to wait.
I checked my free TransUnion report on annualcreditreport.com and the two accounts I had asked to be removed are no longer there. I'm not sure if this is permanent or part of the dispute. Who knows, lol?
Again, thank you for everyone's comments and help. I love learning about all this credit information. I'm sure I'll make some mistakes along the way, but c'est la vie!