OC changing chargeoff date=reaging?

Discussion in 'Credit Talk' started by piggybank, Sep 17, 2003.

  1. piggybank

    piggybank Active Member

    I know this question has been posed in varying forms before, but, please bear with me.......

    Can an OC who changes the charge off date of an account that was paid in full 3 years ago (previously reported as a chargeoff) be guilty of 'reaging' an account, even if they do not change the DOLA listed on the tradeline?

    Example: Delinquent account closed and charged off in 3/98, went delinquent in 1997. Account was paid in full in 6/2000. OC never reports account paid in full until I contact them via dispute letter in 3/03. They update account to paid/settled 6/2000, leave the DOLA as 8/97, but now report the charge off date as 3/03. Prior to that time the account had been listed as a charge-off on my report as follows: "Charge Off as of 10-1999 to 2-2003, 10-1998, 7-1998 to 9-1998, 3-1998 to 5-1998". Now my report simply reflects that this account was charged off to P&L in 3/2003 (the rest of the chargeoff history has been deleted, making it appear as if it were charged off this year and really damaging my scores).

    OK, my reason for asking (it gets better)......my current copies of my credit reports look peachy, account appears to be reported correctly--BUT I strongly suspect they have reaged this account from the blow that my score recently took when they updated the information. So, lets take a look at the LENDERS copy of my credit report (EQ, which I DO have a copy of courtesy of a friendly car salesman). It seemingly tells a different story with ONLY the following information listed about the account:
    -Status COLL/P&L
    -Reported 03/03
    -'Creditor settled for less than amount due'
    -CHARGE OFF $XXXX on 03-03

    There is NO DOLA listed--just this chargeoff information. I was denied credit by the auto dealer who said 'your score is GREAT, but we can't approve you based on the fact that they're reporting that this account wasn't paid until March of this year"

    Does this constitute re-aging?? I know it does, but LEGALLY can it be proved that just altering the charge-off date constitutes FCRA violations??

    Thanks for any and all help!
    And, by the way, I would like to recommend to anyone who has the chance--get a copy of the LENDERS COPY of your credit report (if possible) when you apply for credit. It's true what people say....the lenders copies tell a MUCH different tale than the worthless copies the cra's charge us out the wazoo for!
  2. jlynn

    jlynn Well-Known Member

    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. piggybank

    piggybank Active Member

    Thanks for the reply. Again, please bear with me here--that's what makes this situation so tricky......Lets say that they left the DOLA alone on my experian report that still reads that the date scheduled to fall off is next year (7 years from '97 DOLA). However, they changed only the chargeoff date from 98 to this year. Apparently this doesn't extend the length of time they are trying to report the account, however it certainly re-ages the account in the eyes of creditors. Creditors now see an account that went past due in 97 and wasn't charged off/settled until this year. Granted, the account still drops off of my reports next year, but it is a much worse derog than having the account listed with the correct original chargeoff dates and a settlement that should have been reported 3+ years ago. Does this make any sense?? Sorry if I'm being hard headed here, but it seems that they have tried everything to reage this account and damage my scores without actually blatantly changing the DOLA.

    Thanks again for the help.
  4. lbrown59

    lbrown59 Well-Known Member

    They update account to paid/settled 6/2000
    but now report the charge off date as 3/03
    What was there to charge off in 2003 after you paid it in 2000?
    THE END ** *** ** LB 59
  5. lbrown59

    lbrown59 Well-Known Member

    YER rite:
    Makes it look like a recent charge off which is much more damaging then one from three years ago.
    What's worse they are really reporting a false charge off on a nonexistent account!

    THE END ** *** ** LB 59

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