1. What is Re-Aging?

Re-Aging is the process of resetting the account's delinquency clock to Current after customer completes relief / forbearance / restructuring.

Example:

• You were 90 DPD before March 2020.
• RBI Moratorium / COVID Forbearance granted March-Aug 2020.
• You resume payment Sep 2020.
• Correct Re-Aging: Account should be reported as Current, with DPD 0 from Sep 2020 onward, and original delinquency preserved but not extended.
• Failure: Lender continues to report you as 90+ DPD even after resumption, or creates new Date of First Delinquency [DOFD] in Sep 2020, extending 7-year reporting period. This is illegal re-aging.

There are two illegal forms:

a) Failure to Re-Age to Current: Not bringing account to current after relief compliance - shows past due during accommodation period.

b) False Re-Aging / Re-Age to Extend: Changing DOFD to make old debt look new to keep it on credit report beyond 7 years. Prohibited under 15 USC 1681c(a)(4).

2. Legal Framework

US:

• FCRA § 1681s-2(a)(1)(F)(ii)(I) - CARES Act §4021 Amendment: If furnisher agreed to provide accommodation - deferral, forbearance, modification due to COVID - and consumer complies, furnisher must report account as Current. Can add code for affected by natural disaster.
• NACHA / CFPB Guidance: Monthly Payment History Profile [PHP] should show D = Deferment, not L = Late.
• FCRA §1681c(a)(4): Most adverse items cannot be reported more than 7 years after original delinquency date. Re-aging to reset clock violates.

India:

• RBI COVID Moratorium Circulars DOR.No.BP.BC.47/21.04.048/2019-20 dated 27.03.2020, 17.04.2020, 23.05.2020: Accounts granted moratorium shall not be classified as NPA, rescheduling shall not be treated as restructuring. DPD freeze.
• RBI Framework for Resolution dated 06.08.2020: Lenders to allow moratorium up to 2 years and re-age account as Standard on implementation of Resolution Plan.
• SC Judgment 23.03.2021 in Small Scale Industrial Manufacturers Association v. UOI: Lifted blanket ban on NPA classification, but directed refund of interest on interest and that moratorium period shall not be considered for NPA. Failure to re-age after moratorium = deficiency.
• RBI Circular 07.04.2021: Implementation of Supreme Court order on refund.

3. Case Laws - US

1. Felts v. Wells Fargo Bank, N.A., 893 F.3d 1305 (11th Cir June 27, 2018) - Leading Pre-Forbearance Case
Facts: Borrower entered $25 per month forbearance plan, but Wells reported account as past due and delinquent during plan.
Held: 11th Circuit held reporting as past due and delinquent during a forbearance plan was neither inaccurate nor materially misleading under FCRA because forbearance did not erase contractual delinquency, it only temporarily reduced payment.
Importance Today: This case was overruled in effect by CARES Act §4021 which now mandates reporting as Current if accommodation. It is still cited by lenders to defend pre-2020 conduct, but post-CARES, same conduct is violation.

2. Eric Mitchell v. Specialized Loan Servicing LLC [SLS] - 9th Circuit 2023 - Post-CARES Interpretation
SLS reported account status as Current but monthly PHP code as "D" for deferment during COVID forbearance. Plaintiff claimed inaccuracy.
Held: 9th Circuit held reporting of a “D” in the monthly payment history profile, in addition to reporting account status as “current,” complied with FCRA and CARES Act. Accommodation code is permissible as long as status is Current.
Rule: Accurate re-aging = Status Current + accommodation comment.

3. In re Wells Fargo Forbearance Litigation - ND Cal 2020
Wells Fargo put residential mortgage holders into forbearance without knowledge or consent during COVID. Plaintiffs alleged FCRA violation and state UDAAP. Court allowed FCRA claims to proceed, held FCRA does not preempt state claims for unauthorized forbearance. Resulted in settlement.

4. Re-Aged Collections Line of Cases - FCRA §1681c

• Davis v. Maryland Bank, 2002 WL 32713429 - Disputes related to alleged delinquency in paying credit card bills and reporting. Court discussed re-aging.
• Cushman v. Trans Union, Hinkle v. Midland Credit, Pinson v. Equifax - Bureau cannot rubber-stamp furnisher's response when consumer provides independent counter-evidence of original delinquency date. If bureau verifies a re-aged collection despite documentation, that is unreasonable investigation under 1681i.
• CFPB Guidance: Re-aging changing date so old debt seems new is illegal under federal FCRA.

4. Case Laws - India

5. Small Scale Industrial Manufacturers Association v. UOI & Ors - SC Judgment dated 23.03.2021
SC decided moratorium relief. Key holdings:
a) Compound interest / interest on interest for moratorium period 01.03.2020 to 31.08.2020 to be refunded.
b) Interim Order dated 03.09.2020 barring declaration as NPA is vacated - but banks must implement resolution framework and re-age accounts as Standard if resolution invoked.
This is the base for re-aging in India.

6. Atibir Industries Co. Ltd. Vs State Bank of India & Anr. (Supreme Court 2026 INSC 1156) - Most Recent
Borrower challenged NPA classification and assignment to ARC relying on three RBI moratorium circulars dated 27.03.2020, 17.04.2020 and 23.05.2020. Borrower argued moratorium should extend DPD. SBI classified account as NPA with retrospective effect during pandemic. SC did not decide validity of NPA classification, but fashioned equitable settlement directing additional payment, while leaving open NPA re-aging question. Shows litigation continues on accurate re-aging post-relief.

7. Gajendra Sharma Vs Union of India - SC Interim 2020
During moratorium plea, SG submitted no account shall become NPA at least for 2 months. Accounts which were standard as of Feb 29, 2020 not to be declared NPA. This established standstill principle - DPD frozen.

5. How To Prove Failure to Re-Age Accurately

For a customer to succeed:

1. Prove accommodation existed - RBI circular letter, forbearance agreement, email from bank
2. Prove compliance - You paid as per new terms
3. Pull CIBIL / Credit Report - Show PHP still shows L / 30/60/90 DPD during moratorium or post-relief, instead of Current + D / DM code
4. Dispute under FCRA 1681i / CIBIL dispute - Furnisher fails to correct
5. Damages: Willful non-compliance = statutory damages $100-$1000 per violation in US, + punitive; In India, compensation for CIBIL damage + Ombudsman award up to Rs 20 Lakhs

6. Correct Process for Lender [What Should Have Happened]

As per CFPB CARES Act FAQs:
Accommodation includes relief granted to impacted consumers such as agreement to defer payment, make partial payment, grant forbearance, modify loan. If consumer makes payments or is not required to make payment, report as Current. Do not advance DOFD. Preserve original DOFD. Add Special Comment Code AW = Affected by Natural Disaster, or CP = COVID.

In India as per CIBIL / TU reporting: Field - Repayment Frequency = 01, Asset Classification = Standard, Days Past Due = 0, Special Comment = Moratorium / Restructured due to COVID.