Kristie, please help.

Kristi Please Help

O.k. Roni, you will now be able to rest( lol) because I am going to answer your question and my answer comes straight from the opinions of the FTC.

Regarding the dates of before and after 1997

Please read this in full to understand it. The problem with most of these issues is that people skim over it and miss critical points.

Because the commencement of the seven year period is now described with some precision by the statute, it is our opinion that none of the subsequent events you listed -- sale of the charged off account by the creditor to another creditor or collection agency, or a payment on or dispute about the account by the consumer -- changes the allowable period for a CRA to report a charge off.

3. Since Sections 623(a)(5) and 605(c)(1) provide new rules for calculating the 7-year period that became effective in 1997, do charge off accounts now have different obsolescence periods depending on when the charge off occurred?

Yes. Section 605(c)(2) states that the section "shall apply only to items of information added to the (CRA) file of a consumer on or after" 455 days after enactment, or December 29, 1997. Therefore, a charge off reported to a CRA on or after that date is subject to the new commencement-of-the-delinquency method of calculating the obsolescence period set forth in Sections 623(a)(5) and 605(c)(1).

(Heres where it applies to you Roni)
On the other hand, a charge off reported to a CRA before December 29, 1997, is not covered by the new provisions, as discussed in (Kosmerl, 06/04/99).

If a credit account was reported as a charge off before 1997, the Commission's view has been that it can be reported for seven years from the date the creditor actually charged it off.

What that means is that rather then reporting it for 7 years plus 180 days under the ammended FCRA it is simply reported from the actual date of charge off. Even if you pay a debt that was charged off prior to 1997, that does not permit the creditor to report it for 7 years from the date you last paid. That has never been the case.

Many people confuse what the original FCRA meant in terms of "Reporting time" Even before 1996 the account was supose to still only be reported for 7 years from date charged off but there was no prevision that protected you from addtional actions extending that time. That is why the NEW FCRA made it painfully clear to CRA & creditors that one date must apply.

If the creditor attempts to extend the reporting time on an already charged off debt because you made a payment a few years later, just refer them to Clarke W. Brinckerhoff Attorney-202-326-3224 who writes the opinion letters on this issue for the FTC. He specifically states that debts charged off before 1997 should be reported for 7 years from actual charge off date and no extending of that time is permitted.

There may be some critics that disagree but I personally wrote to the FTC and asked this same question and got the answer I am giving you now.

As always, not lgal advice, just my opinion!
Kristi




roni wrote:
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I just read a post on Bayhouse. A lady there said that she charged off a Discover account in 1995. She paid it off slowly making $20/mo payments. She disputed the account in 8/2000. Well they updated the last activity to 8/2000. So I thought: they cant restart the clock so she should dispute the new date. But everyone on that sight, including Christine Baker said that she did restart the clock by paying it. Why is this so confusing. This is making my stomach ache. Christine Baker referred the lady to Junum or to You, Kristi. I know you have asked this before, but was the clock restarted for accounts prior to 1996. I disputed the account myself once and it came back verified so I left it alone. Well Junum disputed mine again and now my account says 1997. Ugh. I mean, we come to you and Junum to get these kinds of questions answered. I cant even get in contact with Junum. Left messages Monday- no return calls. After you address this one last time, I am leaving it alone. I wont rest....

 

And........Remember........

And let me just add that making a payment renews the SOL to COLLECT NOT REPORT!!!!!

That lady, you spoke of said her date of last activity was now 8-2000, That is correct. That is the last action on the account but does NOT change how long it should remain on her credit. Last activity and reporting time of first serious delinquency that leads to charge off are DIFFERENT....


Kristi wrote:
-------------------------------
O.k. Roni, you will now be able to rest( lol) because I am going to answer your question and my answer comes straight from the opinions of the FTC.

Regarding the dates of before and after 1997

Please read this in full to understand it. The problem with most of these issues is that people skim over it and miss critical points.

Because the commencement of the seven year period is now described with some precision by the statute, it is our opinion that none of the subsequent events you listed -- sale of the charged off account by the creditor to another creditor or collection agency, or a payment on or dispute about the account by the consumer -- changes the allowable period for a CRA to report a charge off.

3. Since Sections 623(a)(5) and 605(c)(1) provide new rules for calculating the 7-year period that became effective in 1997, do charge off accounts now have different obsolescence periods depending on when the charge off occurred?

Yes. Section 605(c)(2) states that th....