Re: Charge-off
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Posted by CardReport.Com on November 17, 2000 at 02:51:23:
In Reply to: Charge-off posted by Tim on November 16, 2000 at 18:18:09:
This is covered in the Fair Credit Reporting Act... -----------------------------------------
Section 605 - Requirements relating to information
contained in consumer reports... (c) Running of reporting period. (1) In general. The 7-year period referred to in
paragraphs (4) and (6) of subsection (a) shall
begin, with respect to any delinquent account
that is placed for collection (internally or
by referral to a third party, whichever is
earlier), 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.
-----------------------------------------
So you add on 180 days from the date that the debtor
became delinquent and never again caught up, to
get the starting date for the seven year time limit.
Creditors seem to often declare accounts to be
charge-offs around the point of 180 days without
payment, but this does *not* necessarily have to
happen to start the seven year "clock."
You can find the
full text of the Fair Credit
Reporting Act (along with supplimental material)
in our *Credit
Laws* section (link is at left.)
Good Luck.
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