What date to determine when a debt should be deleted?

[Anonymous]

hi,

I joined credit karma to get an overview of my credit and i am trying to figure out how to determine when an item is set to be deleted from my credit report. I know its 7 years but 7 years from what date? Since it was last reported or since it was closed? Thank you..

[Anonymous]

Seven years from date of first default, which would be the date of the event (i.e. missed payment) that lead to the account going into default.

[RobertEG]

It varies depending upon the individual type of adverse item.

They are all clearly defined in FCRA 605(a) - (c).

Date of first delinquency (DOFD) is only used for collections and charge-offs.  It is irrelevant to other types of derogs.

For a collection or charge-off, the exclusion date is no later than 7 years plus 180 days from the DOFD.

DOFD is defined as the first delinquency in the most recent chain of account delinquency that preceded the CO or collection.

Individual monthly delinquencies, rather they be in the most recent chain of delinquencies or any prior chain of delinquecies, each individually have an exclusion date of no later than 7 years from their individual date of delinquency.  They do not all become excluded based on any DOFD.

The exclusion of a reported judgment is the latter of 7 years from the date of entry of the judgment of the expiration date of the enforceability of the judgment if it has not been paid.

The exlcusion date of a tax lien is 7 years from the date paid, and thus can remain indefinately if it remains unpaid.

All of the exclusion dates/periods are exempted if a party requests a credit report with respect to the circumstances listed under FCRA 605(b).  The most notable is when a consumer initiates a request for credti in the amount of $150K or more.

[RobertEG]

It varies depending upon the adverse type of information that has been reported.

They are all listed in FCRA 605(a) - (c).

Date of first delinquency (DOFD) is only relevant in determining the exclusion date of a collection or charge-off, and the exclusion period is no later than 7 years plus 180 days from the DOFD, not 7 years.

Each reported montyly deliqnuency becomes excluded no later than 7 years from its individual date of occurence.  DOFD is irrelevant.

Judgements become excluded no later than 7 years from their date of entry, or upon expiration of their period of enforceability, whichever is longer.

Tax liens become excluded no later than 7 years from date paid.  If unpaid, the exclusion period has not yet begun.

[gdale6]

It would be the DoFD. The DoFD is widely accepted as being the 30 day late that preceeds the CO. The CRTP is at maximum 7.5 years from this date and it cannot be changed even if you resume payments once the account has reached CO status.

[Anonymous]

All of the exclusion dates/periods are exempted if a party requests a credit report with respect to the circumstances listed under FCRA 605(b).  The most notable is when a consumer initiates a request for credti in the amount of $150K or more.

I've never heard that. So if I apply for a mortgage for instance, the Baddies stay in the score?

[RobertEG]

A party does not automatically receive a full-file credit report that includes all adverse items.   They must include in their inquiry a statement that they request a full-file report based on their specific exemption provision, such as a consumer-iniitated request for credit or insurance in the amount of $150K or more.

They are not common, but are specifically provided for under the statute.

[Anonymous]

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@RobertEG wrote:

A party does not automatically receive a full-file credit report that includes all adverse items.   They must include in their inquiry a statement that they request a full-file report based on their specific exemption provision, such as a consumer-iniitated request for credit or insurance in the amount of $150K or more.

They are not common, but are specifically provided for under the statute.

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I would add that this exception was written into the law several decades ago, when 150K was the equivalent of today's 'jumbo' mortgage (now well over 400K). Since there has not been anyone here in the forums reporting that they have been denied a mortgage recently for this reason, it's my suspicion that this is something that only occurs with a jumbo loan, and even then only rarely.

[Anonymous]

ok, thanks, that puts my mind at ease!

[gdale6]

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@Anonymous wrote:

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@RobertEG wrote:

A party does not automatically receive a full-file credit report that includes all adverse items.   They must include in their inquiry a statement that they request a full-file report based on their specific exemption provision, such as a consumer-iniitated request for credit or insurance in the amount of $150K or more.

They are not common, but are specifically provided for under the statute.

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I would add that this exception was written into the law several decades ago, when 150K was the equivalent of today's 'jumbo' mortgage (now well over 400K). Since there has not been anyone here in the forums reporting that they have been denied a mortgage recently for this reason, it's my suspicion that this is something that only occurs with a jumbo loan, and even then only rarely.

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It was actually raised to 150K in the 2012 update to the FCRA from 50K... I agree it should be for jumbo loans with todays main marketplaces.