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#2170204 - 03/26/18 09:25 PM 7 Year Reporting Cut Off
MainStreeter Offline
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Joined: Jun 2014
Posts: 58
FCRA rule says the 7 year reporting cutoff period "shall begin (with respect to any delinquent account that is placed for collection, 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"...

Looking for clarification- previously I had in my mind that the 7 year timeline began on the DOFD that led to the charge-off. In re-reading this I'm thinking (for example) account goes delinquent (DOFD), stays delinquent and 180 days pass before account is eligible for charge-off (expiration of the 180 day period), making the charge-off date when we should start our 7 year clock.

When technically does the 7 year clock start... Date of First Delinquency or Date of Charge-Off?

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#2170714 - 03/28/18 08:20 PM Re: 7 Year Reporting Cut Off MainStreeter
MainStreeter Offline
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Joined: Jun 2014
Posts: 58
Anybody have insights on the 7 year purge rule?

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#2170719 - 03/28/18 08:52 PM Re: 7 Year Reporting Cut Off MainStreeter
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,224
Galveston, TX
In plain language, the statute has two time frames. The first is an account can remain on the credit report for 7 years from the date the account was charged off and the second is that an account can remain on the credit report for 7 and a half years from the date the first delinquency occurred. You have to remove it when the first of the two occurs.

So, if you have an account that has a DOFD a year before charge off, you would have to remove the account in 7 1/2 years even though that was before the 7th anniversary of the charge-off.

Conversely, if you charged the account off only 90 days from DOFD, you would remove the account 7 years from charge-off, as that date comes first.
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#2203547 - 01/22/19 03:22 PM Re: 7 Year Reporting Cut Off MainStreeter
M&M Offline
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Joined: Nov 2003
Posts: 530
Midwest
Where in FCRA are the provisions about the 7-yr rule for delinquency and the 10-yr rule for bankruptcy?

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#2203549 - 01/22/19 03:37 PM Re: 7 Year Reporting Cut Off MainStreeter
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,224
Galveston, TX
Section 605
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2203574 - 01/22/19 05:23 PM Re: 7 Year Reporting Cut Off MainStreeter
M&M Offline
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Joined: Nov 2003
Posts: 530
Midwest
Thanks!

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