Tihs was straight from Experian's web site. You might want to consider commuting from New York! New York state law requires satisfied judgements, paid charge offs, and paid collections to be deleted in five years. The state law applies only to those three negative items. It does not apply to other delinquencies. The federal Fair Credit Reporting Act governs credit reporting nationwide. Some states add to the federal law with their own Fair Credit Reporting acts. New York is the only state that specifies a shorter retention time for certain delinquencies than the federal law. Your permanent residential address determines what laws apply. Because you now live in Washington, D.C. negative information will be deleted in seven years. Also be aware that the laws that apply are based on your primary state of residence. That means if your permanent residence is in North Dakota but you spend the winter in Florida, the North Dakota laws app
This isn't clear...but then again...neither is the changes in reporting from six months after the date of delinquency when it comes to pre 1997 accounts. Say someone had an account go delinquent in 1996 and it was charged off in 1996. This falls under the old FCRA, so I presume they can report it from the date of last activity...correct? Even if someone were to pay on it in 1998 and then go delinquent after one payment, that would be the DOL and start the seven year clock over again to six months from that date, correct? That being the case, if you pay it, the whole seven years starts over. If one were to pay the chargeoff, and it had been reported as a chargeoffs since 1996, would it immediately come off the report, or would it update to paid chargeoff and then remain another five years from the date paid? I'm not grasping this very well. Anyone have a better grasp? L
Paying on an acct that has been charged off or sent to collections does NOT restart the reporting period.
Division of Financial Practices ~ Clarke W. Brinckerhoff Attorney - 202-326-3224 UNITED STATES OF AMERICA FEDERAL TRADE COMMISSION WASHINGTON, D.C. 20580 February 15, 2000 Ms. Alaina K. Amason 14155 Shire Oak San Antonio, TX 78247 Dear Ms. Amason: This responds to your letter concerning the time limitations imposed by the Fair Credit Reporting Act ("FCRA") on the reporting of chargeoff accounts by a consumer reporting agency ("CRA," usually a credit bureau). We list your inquiries on this topic below in italics, with our replies immediately following each item. 1. What reporting limits does the FCRA provide with respect to chargeoffs, and how long have they been in effect? Section 605(a)(4), which has been in effect since the FCRA became effective in April 1971, has always prohibited CRAs from reporting chargeoffs that are more than seven years old.(1) Section 623(a)(5), which became law in September 1997, requires a creditor that reports a chargeoff to a CRA to notify the agency (within 90 days of reporting the account) of "the month and year of the commencement of the delinquency that immediately preceded" the chargeoff. Section 605(c)(1) provides that the seven year period begins 180 days from that date. Both provisions were part of the major revision to the FCRA that were enacted in 1996.(2) 2. Is the reporting period extended if (A) the original creditor sells or transfers the account to another creditor, (B) the consumer responds to post-chargeoff collection efforts by making a payment on the debt, or (C) the consumer disputes the account with a CRA? Does it matter whether the 7-year period has expired when any of these events occurs? No. In enacting the new provisions discussed above, Congress intended to establish a date certain -- 180 days after the start of the delinquency that led to the chargeoff -- to begin the obsolescence period. It did so to correct the often lengthy extension of the period that resulted from later events under the original FCRA. Enclosed are two staff opinion letters (Kosmerl, 06/04/99; Johnson, 08/31/98) that discuss the impact of these provisions, and the legislative history relating to their enactment, in more detail. 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, or a payment on or dispute about the account by the consumer -- changes the allowable period for a CRA to report a chargeoff. 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 chargeoff accounts now have different obsolescence periods depending on when the chargeoff 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 chargeoff 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). On the other hand, a chargeoff reported to a CRA before December 29, 1997, is not covered by the new provisions, as discussed in one of the enclosed letters (Kosmerl, 06/04/99). If a credit account was reported as a chargeoff before that date, the Commission's view has been that it can be reported for seven years from the date the creditor actually charged it off.(3) The opinions set forth in this informal staff letter are not binding on the Commission. Sincerely yours, Clarke W. Brinckerhoff --------------------------------------------------------------------------------
Question: I thought the SOL on reporting went by whichever was longest to take off paid collections, chargeoffs, ie. State law is 5 years, Fed law is 7 years, Fed is longer, so they go by that length. Incorrect?
Thank you so much, LKH! I've read this opinion letter before, but must not have read it very carefully. CCB cashed my check for $15.00 on March 20 (the one I sent to get a copy of the original signed contract, along with the last four statements on the account and the date the account went delinquent). I don't know how long it will take them to get them to me, presuming they can, but I was thinking in the 30-45 day time frame would not be considered unreasonable. If I end up having to sue, I will name both CCB and Experian. At that point, I guess I'll ask CCB to produce their financial records indicating when the account was charged off for their tax records. I believe I read somewhere that banks are required to charge accounts off within 180 days of the account going delinquent. Not sure that is a law, but rather might be a procedure implemented by each individual bank. I need to look further into this. I just know that this isn't my account, but if by some miniscule chance it turns out that somehow I managed to do this and not remember it, there is NO WAY there was activity on that account in 1998. I met my hubby in 1996 and since that date I have my records. Also, I have some major points of reference to help my memory. In February, 1998, I was flat on my back with preterm labor problems. Anyway...thanks again for posting this. It will help me tremendously with this tradeline in the future. I believe my score would jump between 50 and 100 points if this alone were corrected/deleted. L
States have the right to carve stricter standards than the federal government. If NY (of which I am a former resident) decides to make it 5 years then they have that right. REMEMBER!!!!!, it's only 5 years for PAID charge-offs, collections and judgements. Everything else is subject to the 7 year federal rule.
