How to calculate days late???
Date: Sun, 10/18/2009 - 18:26
My Chase bill was due on 10/3 but I did not pay it. A new one wa
My Chase bill was due on 10/3 but I did not pay it. A new one was generated on or about 10/7. A call from them today said I was now 10 days late on my payment. So, your theory would be correct.
However, when I was late on my Amex bill last year, it seemed to work differently. For example, if the statement was issued on 10/3, I was considered 30 days late at 11/3 (or thereabouts). Not sure why it would be different from place to place but that's what happened to me.
Just reposting in hopes others can give some feedback.
Just reposting in hopes others can give some feedback.
The # days past due starts at the Date of First Delinquency (fir
The # days past due starts at the Date of First Delinquency (first payment that was missed which led to the default). So assuming you made your 5/9 payment, then 6/9 would be the DOFD.
Now, the 180 day period you talk about is not a law that applies to every lender* (I'll come back to that in a second). Most creditors are not required to chargeoff at any specific point/timeline. It is generally up to a company's own internal policy as to when they decide to chargeoff an account. It is commonly between 90-180 days, but varies from company to company.
A company may decide not to chargeoff an account at all. For example, I have one particular loan on my books that became delinquent in 2005 and is currently 1,245 days past due -- but I have not charged it off. My rationale on this particular account is based on recency # days, not calendar aging.
* The FDIC requires its member banks to chargeoff "... open-end retail loans that become past due 180 cumulative days from the contractual due date." Source: http://www.fdic.gov/regulations/laws/rules/5000-1000.html
BUT keep in mind the following:
1) The FDIC laws/regulations only apply to banks that are FDIC-insured. If you have a credit card with a lender that does not hold deposit accounts, then they probably are not FDIC-insured, and those laws do not apply to them.
2) The FDIC timeframe stated above is a merely a ceiling. A bank can chargeoff any time they like (60,90,120, etc) as long as they do not go beyond 180 days .... "This policy does not preclude an institution from adopting a more conservative internal policy. Based on collection experience, when a portfolio's history reflects high losses and low recoveries, more conservative standards are appropriate and necessary. "
