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Start Time for Derogatory Fall Off

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Valued Member

Start Time for Derogatory Fall Off

Someone I have more reason to trust told me that the start time for fall off begins about a month after your last actual payment....and that is the info I have pretty much been going on.  But, I was on the phone with someone yesterday who told me that it doesn't start until you see the Charge Off.  Is that true?  When does it really start?  Let's say for example that I have a Charge Off account where the last payment I made was in December 2012, and the CO followed in May of the next year....  When would I expect it to fall off?  Thanks in advance!

Message 1 of 13
12 REPLIES 12
Established Contributor

Re: Start Time for Derogatory Fall Off

It's the date of first delinquency. So the late where it was never brought back current + 7 years. If you get a copy of your reports from annualcreditreport.com it will show you the date when a tradeline is scheduled to be excluded.

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Current 05/19/19:


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Message 2 of 13
Valued Member

Re: Start Time for Derogatory Fall Off

Thank you.  Smiley Happy

Message 3 of 13
Established Contributor

Re: Start Time for Derogatory Fall Off

I am in this same boat while working on my husband's credit.  Our issue is Navient and when he was unemployeed it seems they gave him random months of being good (2-3 at a time) and then marked late and back again...for a duration of 4 years which they now want to use the later date- 4 YEARS after any payment was ever made on said accounts!  Loans were eventually rehab'd and is now being paid.  I would think we have a good chance of disputing and getting the late tradelines completely removed now (since they are now all over 7 yrs based on when the original default actually began). 

Hoping the resident expert will chime in here too.

Message 4 of 13
Valued Member

Re: Start Time for Derogatory Fall Off

Yep!  They did that to me too.  :/

Message 5 of 13
Established Contributor

Re: Start Time for Derogatory Fall Off


@Mystik1 wrote:

Yep!  They did that to me too.  :/


I'm hoping someone that has delt with Navient will offer some advice. 

Message 6 of 13
Established Contributor

Re: Start Time for Derogatory Fall Off


@dynamicvb wrote:

It's the date of first delinquency. So the late where it was never brought back current + 7 years. If you get a copy of your reports from annualcreditreport.com it will show you the date when a tradeline is scheduled to be excluded.


 

I am curious, is "annualcreditreport.com" the only place that calculates this for you?   I can not recall seeing it listed anywhere else, leaving it to the consumer to calculate, but it is definitely listed on the reports fromannualcreditreport.com. 

050719:     
061819:     

A regretful expert. I have repaired before, I will repair again.
Message 7 of 13
Established Contributor

Re: Start Time for Derogatory Fall Off


@Hasselfree wrote:

I am in this same boat while working on my husband's credit.  Our issue is Navient and when he was unemployeed it seems they gave him random months of being good (2-3 at a time) and then marked late and back again...for a duration of 4 years which they now want to use the later date- 4 YEARS after any payment was ever made on said accounts!  Loans were eventually rehab'd and is now being paid.  I would think we have a good chance of disputing and getting the late tradelines completely removed now (since they are now all over 7 yrs based on when the original default actually began). 

Hoping the resident expert will chime in here too.


@Hasslefree, clarify for us:  Is this Navient account that displays the late payments CLOSED?

050719:     
061819:     

A regretful expert. I have repaired before, I will repair again.
Message 8 of 13
Community Leader
Legendary Contributor

Re: Start Time for Derogatory Fall Off

The Higher Education Act includes explicit provisions that exempt certain federal student loans from the normal credit report exclusion of delinquencies, charge-offs, and collections until the loan has been repaid.  See, for example, sections 430A and 463 of the Higher Education Act.  

 

If your federal student loan is such a type, then the normal 7 year exclusion of monthly delinquencies and exclusion of a collection or charge-off no later than 7 years plus 180 days from the DOFD does not apply until you have repaid the entire loan.

Once the loan is entirely paid, then the normal exclusion provisions of the FCRA kick  back in.

 

As for the normal exclusion of derogs, the FCRA was specifically amended to clarify the exclusion date for charge-offs and collections by the addition of section 605(c), which explicitly defines the use of a single date-certain for such exclusions as being based ONLY on the date of first delinquency.  The date of a charge-off or the date that a debt collector obtained collection authority or reported their collection is irrelevant.  Credit report exclusion of a charge-off or collection is mandated, except for certain federal student loans, no later than 7 years plus 180 days from the DOFD.

 

As a side note, the date of charge off could not possibly be used for determination of exclusion of a charge-off, as that date is not reported to the CRAs, and the CRA reporting system has no code for storing the date of a charge-off. 

The CRA only receives the date that a creditor decides to first report that they have, at some unspecifed prior date, taken that accounting measure.  Reporting of a charge-off then triggers the requirement to additionally provide the DOFD to the CRA no later than 90 days after reporting of the charge-off (FCRA 623(a)(5)).  The date of that they actually took the CO is not reported.

Message 9 of 13
Valued Member

Re: Start Time for Derogatory Fall Off

I just grabbed my reports from annualcreditreport.com.  I see that it says when inquiries fall off, but not derogatory accounts.  Am I missing it?

Message 10 of 13