Shoukd I call CA for debt validation?

[Anonymous]

I have an old private student loan that was sold to AES. It says date opened June 2006. It’s on TU as a charge off and states that estimated month of removal is 3/2018. On the colored grid on my TU report it looks like it first went delinquent in May 2011. Is that the date of first delinquency? The remarks state it was sold to another lender again this time in July last year to Sims Associates. Sims is also on my reports. Will Sims come off also in March along with AES? Just a week ago I got a letter from yet another CA called National Recovery Solutions. It states the original creditor was Doral Bank who had sold it to AES then Sims. The letter states that the current creditor is Coronado Student Loan trust whom I’ve nrver heard of. I’m confused what to do and what to expect? This loan has been sold so many times but at this point I don’t think any of them can report to the bureaus since the OC first became delinquent in May 2011 and my report states one of the CAs is coming off next month. Doesn’t that mean all CAs must stop reporting? Including the two most recent ones that got the account in July (Sims) and the one that wrote me last week? Should I call or ignore them? The SOL in IL is ten years for suing so they can still sue me until 2021 so I’m afraid to even call the newest CA!

[RobertEG]

The date of a first reported delinquency on the OC account is not necessarily the legal date of first delinquency.

First, a creditor can delay reporting of the delinquency on their account, and the date they choose to first report is not necessarily the first date that they could have reported.

Second, DOFD is defined as the date the consumer first became delinquent, which is governed by the account agreement, and can be the day after the billing due date.  However, a first reportable 30-late must be an additional 30 days past the billing due date.

The DOFD can thus be the month prior to a reportable 30-late.\

The FCRA is structured to require the creditor or debt collector to separately report the DOFD to the CRA, removing the need for the CRA to guess at or assume the DOFD based on payment history reporting.  See FCRA 623(a)(5).

Credit report exclusion of a collection is no later than 7 years plus 180 days from the reported DOFD, regardless of when the collection was reported and regardless of whether it is paid or unpaid.  The estimated exclusion date provided on credit reports usually is based on 7 years from the DOFD, and thus there is no requirment that each collection and each CRA exclude on or by that date.  They legally have the full 7 years plus 180 days before lack of exclusion becomes disputable.

[Anonymous]

robert

For federal & private student loans only

so if an exclusion date based on reported dofd is not listed on the credit report then

a) a request for the dofd can be made to the original creditor or

a1) if loan is transferred to new lender a request for dofd can be

b) a request must be made to the cra’s for the reported dofd if report has no dofd listed or

c) by disputing dofd with cra’s they meaning cra’s can delete it before 7 yrs + 180 days. What about reinsert, can it happen if removed. 

[Anonymous]

I’m wondering same thing: once a student loan (private) is deleted due to it being obsolete (7 years old or older), what if it shows up on my reports again with a new debt collector? I’m assuming it’s illegal and I can tell them to remove it right? I just had three fall off in March 1 and am paranoid they will reappear because the OC has sold it so many times, but now it’s too old to report but still....we all know they do things that are violations of the FCRA!

[RobertEG]

You can always make an informal call to a creditor or debt collector, requesting their statement of what they consider to be the DOFD.

However, the FCRA explicitly requires the reporting of the DOFD to the CRA no later than 90 days after reporting of a collection of charge-off.  Thus, their statement of the DOFD must be of record in your credit file if more than 90 days has passed since they reported their collection or charge off.  The CRA is thus the legal source of the reported DOFD.

If your commercial credit report does not show the DOFD, you can usually get it from annualcreditreport.com or by request directly to the CRA.

As for credit report exclusion of a private student loan, they are covered under the normal exclusion provisions of the FCRA.

Only federal student loans have exemption from the normal FCRA exclusion provisions.

No, an excluded collection on a private student loan cannot be reinserted after expiration of 7 years plus 180 days from the DOFD, regardless of whether it is a new debt collector, or whether it is paid or unpaid.

There is no violation of the FCRA for continued inclusion of a collection until the full 7 years plus 180 days from DOFD has expired.

Thus, you would not dispute at 7 years, as their is no basis for a formal dispute until the full 7 plus 180 has expred.

Requests for early exclusion are informal requests, not formal disputes.

[Anonymous]

Robert

Discrepancy of date of DOFD?

My

CRA eq report  of Apr 2017 shows DOFD as Jan 2012

CRA EQ report of Mar 2018 shows Nov 2013.

same lender same chargeoff same balance same date of last payment but different DofD.

Is it mandated to report the correct DOFD.

now, if DOFD is not reported correctly is that grounds for deletion never to be reinserted.

Does it matter if the discrepancy of DOfD is on a private student loan or Federal Student Loan?

[RobertEG]

The DOFD is a factual date-certain, and thus reporting must be consistent with each CRA.

You thus clearly have basis for disputing one or the other as inaccurate.

As with any reporting of information, to err is human, and no statute can mandate human accuracy.

The FCRA dispute process is provided to compel investigation and obtain correction of inaccurate reporting.

A dispute is limited to the specific inaccuracy identified in the dispute, and resolution requries verification or correction.

Deletion is only required if the information under dispute cannot be verified or corrected, and any deletion is limited only to that information.

No, dispute of a reported DOFD is not basis for requiring deletion of other accurate information or of the collection per se.

In fact, a dispute of inaccuracy of a reported DOFD will rarely if ever compel deletion of anything.

DOFD is a required item of information once a collection is reported, and a CRA will either verify the accuracy as reported or correct to the date asserted by the consumer in their dispute.  Deletion would remove any DOFD, and thus leave the CRA with no way to determine the exclusion date.  If the debt collector fails to verify or correct, the CRA will then use its reinvestigation authority to update to the best evidence.

[lexi_7170]

Robert, 

My situation is similar in that my OC lists on my CR incorrect DOFD by several months which extends when the loan ages. I have 3 private SL w/ Navient. On EX 2 of my SL on my CR lists my account status as "closed", but payment status as "current, was past 60 days". TU lists SL #1 as "ok" in 09/2014,  "60 days past due" in 10/2014, "90 days past due" in 11/2014, "90 days past due" in 12/2014, "120 days past due" in 1/2015, "120 days past due" in 2/15, "120 days past due" in 3/15,  and after 4/15 is marked with as "C/O" until 1/16 as to when a collection agency bought the debt.  This SL #1 lists my last payment date as 1/12/2015 and estimated month & year of removal 10/2020. SL #2 listed as "ok" in 11/14,  "60 days past due" 12/14, "90 days past due" in 1/15, "120 days past due" 2/15,  "120 days past due" in 3/15, and after 4/15 is marked with an "x" until now.  SL #2  last listed payment date as as 5/5/15; in actuality, LPD is 9/14. SL #3 listed as "Ok" in 11/14,  "60 days past due" in 2/15, "90 days past due" in 3/15, and "x" from 4/15 until now. SL #3 last listed payment date is as of 5/5/15. SL #2 and #3 are listed as payment deferred on TU; whereas, on EX lists as closed and student loan-payment deferred. My concern is I did not sign up for deferment and as to my understanding deferments aren't automatic and are a process subject to approval. All loans had not been paid for several months prior to the possibility of deferment and this deferment sets the clock back on the aging of the SL. 

Has anyone ever dealt with a situation such as mine? Any advice would be appreciated. 

Have my loans been reaged? And if so, by requesting FCRA date validation is this something that makes creditors aware that I might be contesting potential debts? If I could get my CR to accurately reflect date of last payment it will be a difference of some SL falling off 5-7 months earlier since all dates of last payment activity are inaccurate.