I got divorced six years ago, ex was ordered to pay this CC but declared bankruptcy a couple of days before divorce (and didn't tell the court). long story short, I just had brain surgery, couldn't work, VA compensation was taking a decade back then. USAA refused the divorce decree due to her bankruptcy, I honestly didn't have the energy or time to argue with them. At that time I attempted to negotiate lower payments but they refused, said that the payments were set by law and couldn't be reduced.
At this point in time all 4 credit bureaus show something like:
Status Updated Mar 2014 (date of last activity Aug 2013)
Balance Updated May 8, 2019
Credit Limit $1,500
Past Due Amount $1,000
120+ past due til feb 2014 and then FP each month til May 2019
I have read that USAA generally refuses a PFD. My attorney talked to them and stuff back in 2013 and while he said legally I'm in the right I'd need to take them to court to force them to follow the law, not only that but technically I'd probably need to go after my ex and do it in federal court in a different state because she lied to the bankruptcy court and didn't identify me as a creditor even though the financial decree...
Anyways, any suggestions? I have no problem paying this, but if I pay now will it be on my credit for 7 more years rather than falling off in a year? There were a half dozen other "mistakes" on my report (plus a different SSN and several addresses of my ex after the divorce) but I got all of them off within two weeks since they were actual mistakes. I don't have any other negative credit, just this USAA account.
Thank you for the advice!
A collection or charge-off has an exclusion date under FCRA 605(c) that is no later than 7 years plus 180 days from the date of your first delinquency on the creditor account that immediately preceded the reported charge-off.
The DOFD is the only date that determines the begin of the credit report exclusion period, and if you pay the debt, it does not reset the credit report exclusion date.
Whenever a creditor has reported a charge-off, they are then required to additionally report the DOFD to the CRA no later than 90 days after the date they first reported the charge-off, so the DOFD must be of record in your credit file.
If your commercial credit report does not show the reported DOFD, then check annualcreditreport.com, which will usually show the DOFD.
Date of last payment June 1 2013
Equifax DOFD August 1 2013
Experian DOFD June 2013
(Divorce and her bankruptcy finalized in June 2013)
Wanting to buy a house in August 2019 (1 year before this comes off the CR), credit is mostly perfect, 18 years history, one negative account (this one), zero % utilization (besides the USAA pulling it down), no late payments (besides this one), all student loans paid off, three hard pulls in 2 years... Multiple open accounts (car, revolving, etc). the myfico estimator raised me from current 622 to over 750 without my ex's USAA CO.
I think Robert is saying to just pay it and suck up the extra 150 basis points, $200 extra a month? Any suggestions on how to fix this?
I am in a very similar spot with a C/O account from USAA although mine is due to fall off in Nov '19 from Equifax (I was able to get it removed from Experian and Transunion via an Early Exclusion request). It affects my EQ score pretty bad but since my other two reports no longer show that account, they are much higher. I have read on this forum that you can pay off the account and the balance will report zero which will help your score some. I was just approved for a VA Loan yesterday because they go off of middle score so my Equifax didn't affect me too much.