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When does a charge-off fall off? NOT from DoFD?

nycfico
Regular Contributor

When does a charge-off fall off? NOT from DoFD?

I've been operating under the assumption that a charge off will disappear 7 years from DoFD.  However, in just talking with MyFico, he said that is not the case.  The DoFD will come off at the seven year mark, but the actual charge off will remain seven years from when the charge off itself happened.  I've seen very contradictory information on this...but is his explanation correct?

Message 1 of 19
18 REPLIES 18
ASBinJax
Valued Contributor

Re: When does a charge-off fall off? NOT from DoFD?

I believe that the DoFD is the one that governs when it will fall off.

 

It will be Excluded from being displayed to normal reports no later than 7.5 years from DoFD, and usually at the 7 year mark the CRBs exclude it.

 

If still unpaid, it doesnt mean the debt is gone, it just means not displayed anymore.

 

Once or twice before, I have read where CSRs have been misinformed.  (yep, that was indeed sarcasm).

 

hth

 

 

 

Accept the Challenges so you can feel the Exhilaration of Victory.
George S. Patton
Message 2 of 19
RobertEG
Legendary Contributor

Re: When does a charge-off fall off? NOT from DoFD?

His explanation is clearly incorrect.

 

The entire purpose for additon of FCRA 605(c) to the statute back in 1997 was to explcily set one date-certain as the date for running of the exclusion period of a reported collectin or charge-off.  That date-certain is what is commonly referred to as the DOFD, and is the date that the consumer first became delinquent, and therafter remained delinquent up to the time the creditor took the charge-off.

A collection or charge-off becomes excluded no later than 7 years plus 180 days from the DOFD.  Period.

 

Use of the date the creditor charged-off the debt is not even possible by the CRA.

Creditors do not report the date they took a CO, and it is not even in a consumer's credit file.  The CRA cares only about the DOFD, not the date when the creditor did the accounting.

When a creditor reports a charge-off to a CRA, the date of their reporting is only their reporting that they have, at some prior time, conducted internal accounting that moved the debt from the receivable assets portion of their accounting books over to the bad debt/loss portion.  The internal dates they did that accoouting is irrelevant.

 

Upon reporting the fact that they have charged-off the debt, FCRA 623(a)(5) then requires that they report the DOFD to the CRA within 90 days after their reporting that they have taken a CO.  It is only the DOFD and the DOFD alone that is used by the CRA to then determine the exlcusion of the reported charge-off.

Message 3 of 19
nycfico
Regular Contributor

Re: When does a charge-off fall off? NOT from DoFD?

I kept asking for supervisors and finally got one that seemed pretty knowledgeable and articulate....he was pretty adament about it.

Message 4 of 19
NormanFH
Super Contributor

Re: When does a charge-off fall off? NOT from DoFD?

Yeah, I would not trust anyone at myfico to know this for sure. FICO, Fair Isaac, and MyFICO are all about scoring, not reporting.

 

As RobertEG pointed out, the statute is pretty clear on this point. there really is no room for debate.

Most Recent FICO 8 Scores EX616/TU587/EQ607 01/09/2018 Starting scores 553/485/543 08/25//2017
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Message 5 of 19
nycfico
Regular Contributor

Re: When does a charge-off fall off? NOT from DoFD?


@RobertEG wrote:

His explanation is clearly incorrect.

 

The entire purpose for additon of FCRA 605(c) to the statute back in 1997 was to explcily set one date-certain as the date for running of the exclusion period of a reported collectin or charge-off.  That date-certain is what is commonly referred to as the DOFD, and is the date that the consumer first became delinquent, and therafter remained delinquent up to the time the creditor took the charge-off.

A collection or charge-off becomes excluded no later than 7 years plus 180 days from the DOFD.  Period.

 

Use of the date the creditor charged-off the debt is not even possible by the CRA.

Creditors do not report the date they took a CO, and it is not even in a consumer's credit file.  The CRA cares only about the DOFD, not the date when the creditor did the accounting.

When a creditor reports a charge-off to a CRA, the date of their reporting is only their reporting that they have, at some prior time, conducted internal accounting that moved the debt from the receivable assets portion of their accounting books over to the bad debt/loss portion.  The internal dates they did that accoouting is irrelevant.

 

Upon reporting the fact that they have charged-off the debt, FCRA 623(a)(5) then requires that they report the DOFD to the CRA within 90 days after their reporting that they have taken a CO.  It is only the DOFD and the DOFD alone that is used by the CRA to then determine the exlcusion of the reported charge-off.


Thanks...two other questions:

 

1.  On one account, myfico says my Date of First Delinquency appears to be in January of 2013.  On the equifax report itself that I have, however, it says December of 2009 (which I remember as being correct).  I asked myfico why the discrepancy and they said I should dispute with the credit bureau as they are the ones giving them the data.  But why am I paying myfico every month and ordering reports if I need to check and make sure the data is accurate?  More importantly, is this impacting my fico score, if they believe the DoFD is not even three years ago, when it's actually closer to six years ago??

 

2.  On the Equifax report itself, for another account, there is a Date of First Delinquency of March, 2010.  And then there is a field that is labeled, "Date Major delinquency first reported" which is December 2010...quite a while difference.  What is the difference between these two??

Message 6 of 19
NormanFH
Super Contributor

Re: When does a charge-off fall off? NOT from DoFD?


@nycfico wrote:

@RobertEG wrote:

His explanation is clearly incorrect.

 

The entire purpose for additon of FCRA 605(c) to the statute back in 1997 was to explcily set one date-certain as the date for running of the exclusion period of a reported collectin or charge-off.  That date-certain is what is commonly referred to as the DOFD, and is the date that the consumer first became delinquent, and therafter remained delinquent up to the time the creditor took the charge-off.

A collection or charge-off becomes excluded no later than 7 years plus 180 days from the DOFD.  Period.

 

Use of the date the creditor charged-off the debt is not even possible by the CRA.

Creditors do not report the date they took a CO, and it is not even in a consumer's credit file.  The CRA cares only about the DOFD, not the date when the creditor did the accounting.

When a creditor reports a charge-off to a CRA, the date of their reporting is only their reporting that they have, at some prior time, conducted internal accounting that moved the debt from the receivable assets portion of their accounting books over to the bad debt/loss portion.  The internal dates they did that accoouting is irrelevant.

 

Upon reporting the fact that they have charged-off the debt, FCRA 623(a)(5) then requires that they report the DOFD to the CRA within 90 days after their reporting that they have taken a CO.  It is only the DOFD and the DOFD alone that is used by the CRA to then determine the exlcusion of the reported charge-off.


Thanks...two other questions:

 

1.  On one account, myfico says my Date of First Delinquency appears to be in January of 2013.  On the equifax report itself that I have, however, it says December of 2009 (which I remember as being correct).  I asked myfico why the discrepancy and they said I should dispute with the credit bureau as they are the ones giving them the data.  But why am I paying myfico every month and ordering reports if I need to check and make sure the data is accurate?  More importantly, is this impacting my fico score, if they believe the DoFD is not even three years ago, when it's actually closer to six years ago??

 

2.  On the Equifax report itself, for another account, there is a Date of First Delinquency of March, 2010.  And then there is a field that is labeled, "Date Major delinquency first reported" which is December 2010...quite a while difference.  What is the difference between these two??


MyFICO does not list DoFD or estimated drop dates. You only see this information when veiwing your file directly from the Bureau (like when doing an online dispute), or when pulling a free report from annualcreditreport.com, or when purchasing a hard copy of your report from the CRA. Third party viewers invariably strip out the DOFD/drop dates. All of the other dates associated with an item are pretty much inconsequential.

Most Recent FICO 8 Scores EX616/TU587/EQ607 01/09/2018 Starting scores 553/485/543 08/25//2017
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Message 7 of 19
ronpa
Frequent Contributor

Re: When does a charge-off fall off? NOT from DoFD?

Thank goodness MyFICO has these forums, since the info you indicate receiving from the rep is wrong.

 

Approx 6 years and 9 months to 7 years from DOFD is generally when a charge off falls off - excluded from reporting; data is still in CRA's systems (maybe that's what the rep was referring to?), but no longer shown on regular credit reports. Rarely will a CO report over 7 years. The CRAs generally exclude early, and it can be unpredictable sometimes. I've seen COs fall off months earlier than the CRA's estimated date of removal. In short, COs will near certain fall off at or before 7 years from DOFD. 

Starting Score Mar-15: EX-513, TU-507, EQ-510
Current Score Oct-15: EX-658, TU-631, EQ-628
Message 8 of 19
ronpa
Frequent Contributor

Re: When does a charge-off fall off? NOT from DoFD?

NormanFH is spot on...

 

I'd add, do not dispute the DOFD. Leave it be. The Dec 2009 date is presumably correct. More to the point, that adverse TL will likely be excluded around Sep-2016 to Nov-2016. The TL with Mar-2010 DOFD will likely be excluded around Dec-2016 to Feb-2017.

Starting Score Mar-15: EX-513, TU-507, EQ-510
Current Score Oct-15: EX-658, TU-631, EQ-628
Message 9 of 19
darwin_wins
Established Contributor

Re: When does a charge-off fall off? NOT from DoFD?

I have asked this before and few of you guys have answered it but it wasn't clear to me at that point (then I got busy with other things to ask about it again), does CA ever report a DOFD? If the OC doesn't appear on your report and the CA now holds the debt but their date is more recent (have an entry from SW Credit Systems) whose drop off date on EX is 2020 but TU will take it out next year how does one dispute this info with EX?

 

I have another one which is going to most likely report in same way and lack of DOFD I can't even send in a letter to MCM stating that the debt will be SOL and they can't sue me for anything. I am hoping that never happens, but importantly I would like to know when it will fall off once it starts showing up on the report. The DOFD probably happened late 2009 or early 2010 (Jan/ Feb) so in 5 odd months it would be SOL and if it was late 2009 (Nov/ Dec) then it will SOL within 2-3 months.

 

Can anyone shed light on how to figure these things out?

Message 10 of 19
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