For once and for all - is it 7 years from DOLA or DOFD???

[Anonymous]

There is an incredible amount of misinformation out on the internet regarding this.  They can't both be right.  For instance,  I have a collection account and on their website where they are explaining all of their services and procedures to their potential clients  - they explain that it will remain on the customer's credit file for 7 years from the date of service - DOFD pretty much.   You look on the Equifax website and it says 7 years from the DOLA.   Other web sites say 7 years from DOLA (Liz Weston-financial guru).    AARRRGGGHH!!!!!   I am so frustrated!   If I pay this collection off todya according to Equifax it will remain on my report until 2015 !!!!!  (The CA WILL NOT PFD) Who determines which is right -  collection agencies or Equifax ???

Help!

[Anonymous]

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ee wrote:

Who determines which is right -  collection agencies or Equifax ???

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Neither.  The only answer that counts is the FCRA, which states 7 years and 180 days from DOFD.  Period.

See FCRA 605(a)(4) and FCRA 605(c)(1).

Liz Pulliam Weston is brilliant, BTW.  She knows her stuff.  I'm glad you mentioned her because she also agrees that it's 7 years and 180 days from DOFD:

http://articles.moneycentral.msn.com/Banking/YourCreditRating/WhenPayingBillsCanHurtYourCredit.aspx?...

"Once a negative item is on your file, it generally can be reported for 7½ years from the time you stopped paying on the account." - Liz Pulliam Weston

Message Edited by cheddar on 03-01-2008 10:48 PM

[Anonymous]

I am new to this discussion board and have learned a wealth of info. 

I have a similar issue.  I have just recently started paying off an account that has been in default for several years.  It is with a CA.  However, I noticed when I started paying off this account the CA listed it as a new account with at least one of the CRA (EQ).  Can they do this? 

I don't quite remember the DOFD, but it was at least 4 years ago.  But since the CA has listed it as a new account on my CR will it now stay on my CR for 7 more years?

What should I do about this?

Some advice needed.

[Anonymous]

Cheddar-

The statement that you made from Liz:

"Once a negative item is on your file, it generally can be reported for 7½ years from the time you stopped paying on the account." - Liz Pulliam Weston

leads me to believe once again that it's 7 years from DOLA or last payment.   If the DOFD is 2002 and you make a payment in 2008 then according to the statement above it won't delete off of your report until 2013.    Can you clairfy?

Thanks!

[Anonymous]

It's based on the ORIGINAL DOFD-

If you paid them or not the removal date does not change-

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ee wrote:

Cheddar-

The statement that you made from Liz:

"Once a negative item is on your file, it generally can be reported for 7½ years from the time you stopped paying on the account." - Liz Pulliam Weston

leads me to believe once again that it's 7 years from DOLA or last payment.   If the DOFD is 2002 and you make a payment in 2008 then according to the statement above it won't delete off of your report until 2013.    Can you clairfy?

Thanks!

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[Anonymous]

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ee wrote:

Cheddar-

The statement that you made from Liz:

"Once a negative item is on your file, it generally can be reported for 7½ years from the time you stopped paying on the account." - Liz Pulliam Weston

leads me to believe once again that it's 7 years from DOLA or last payment.   If the DOFD is 2002 and you make a payment in 2008 then according to the statement above it won't delete off of your report until 2013.    Can you clairfy?

Thanks!

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Somehow I knew you were going to ask this as soon as I posted the quote.

You are thinking too much into it.  The "time you stopped paying" is very straightforward.  It is the day you went delinquent on the account.  If you make another payment later, that doesn't change the fact that you stopped paying on the DOFD.

Please read the FCRA sections I cited above.

[Anonymous]

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Joiful wrote:

I am new to this discussion board and have learned a wealth of info. 

I have a similar issue.  I have just recently started paying off an account that has been in default for several years.  It is with a CA.  However, I noticed when I started paying off this account the CA listed it as a new account with at least one of the CRA (EQ).  Can they do this? 

I don't quite remember the DOFD, but it was at least 4 years ago.  But since the CA has listed it as a new account on my CR will it now stay on my CR for 7 more years?

What should I do about this?

Some advice needed.

---

It is a new account.  But it has a DOFD that is the same as the DOFD with the original creditor.

"But since the CA has listed it as a new account on my CR will it now stay on my CR for 7 more years?"  - Please read my first post in this thread.

What should you do?  Perhaps a PFD.  If not, then wait until 7.5 years from DOFD.  If the CA doesn't drop off when it's supposed to, dispute the account with the CRAs as obsolete.

If they still won't delete, I'm sure folks in the General Credit Issues forum will be happy to help from there.

[Anonymous]

Ha!  Thanks Cheddar.   OK - I'll stop over analyzing for now and accept that it is 7 years from DOFD.  Looks like I'm not going to get this collection removed so I don't want to make the clock start all over again if I go ahead and pay it off. 

[Anonymous]

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ee wrote:

Ha!  Thanks Cheddar.   OK - I'll stop over analyzing for now and accept that it is 7 years from DOFD.  Looks like I'm not going to get this collection removed so I don't want to make the clock start all over again if I go ahead and pay it off. 

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The last sentence of the post I have quoted makes me think the concept still may not be clear.

Paying off a collection will not reset the DOFD.  (It won't help your FICO, either, but that's another thread.)

[RobertEG]

For once and for all Amen!!!

This is not a matter of opinion, it is a matter of law.  The date for running of the 7 year (plus six month) period under the FCRA cannot be reset due to later activity, such as any later payment made.  There was previously a great deal of confusion over the starting point, which could have been interpreted as the date of the last activity on the account. This resulted in the possibility of "re-setting the clock" on an old bad debt by making a payment on it, or by paper-shuffling on the part of collection agencies. The issue was clarified in the 1996 amendments to the FCRA, which set a specific starting date related to the original delinquency date, which is the last month for which payment was not received by the original creditor, and not subsequent collection activity.  A creditor, be it due to a CO or referral a CA, cannot change the original delinquency date as the running period for its deletion from the CR.  Period.

FCRA Section 605:

(c) Running of reporting period.

(1) In general. The 7-year period referred to in paragraphs (4) and (6) ** of subsection (a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.

So, the law simply states:  Take the date of last dilenquency, add 180 days to that date, add seven years from that date, and then no one on planet earth may report that delinquency to any CRA without a visit from Tony Soprano!  (aka, Dept of Justice)

Message Edited by RobertEG on 06-16-2008 09:08 PM

Message Edited by RobertEG on 06-16-2008 11:37 PM

Message Edited by RobertEG on 06-16-2008 11:44 PM