If a loan is charged off in 1/95 but the loan was delinquent since early 1994 when does the 7 year reporting clock start? Am I correct in thinking that the 7 year clock should start from the original date of delinquency or does it start from the date of charge off? The CRA seems to think it starts from the date of charge off. As always any insight is appreciated. Ed
I just had the same thing happen but it was a paid collection. Talk to the supervisor at the creditor after the CRA does their investigation. Good luck
It's supposed to be when the original delinquency date starts, but once they put a charge off date, the dates of the original delinquency are sometimes cleared off of the record of the account. So, sometimes it is the date of the charge off.
Most of the formal language for the 7 year rule applies to account histories after 1997! However, the general practice is that the 7 years would start with the first missed payment leading to the chargeoff. If you have any question, you could argue that the account history is not being acturately reporting with the CRAs.
Bkev, I agree. breeze and I debated the matter quite a bit about a month ago, I think our general conclusion was not totally one of agreement, but close enough for horseshoes.
