Newby here, HELOC frozen by bank. Please help! :(

[akii]

Hi everyone, thanks for looking.

 

I just checked on the bank and my Home Equity Line of Credit was frozen. I usually don’t keep money in my checking account because I owe money in HELOC, so I put all my money to pay for my debt. If I need money then I pull from HELOC. Now my HELOC frozen, that means I don’t have money to pay for my bill. I called the bank they said I have a drop on my Credit Report score.

 

I checked my 3 credit report and found out a Collection Agency reported for nonpayment and 2 Closed HELOC for 1 of each over 30 days late payment. I believe the 2 Closed HELOC will not affect me that much, but the Collection Agency as followed:

 

XXXX Collections

Agency Address: Address

 

Date Reported: 07/08

Date Assigned: 03/08

Creditor Classification: Medical/Health Care

Creditor Name: XXX Dental

Account Number: ######

Account Owner: Individual Account

Original Account Owned: $$$

Date of 1st Delinquency: 01/08

Balance Date: 07/08

Balance Owned: $$$

Last Payment Date: N/A

Status Date: 07/08

Status: D – Unpaid

Comments Medical

 

 

Can the bank just drop my HELOC because of just ONE Collection Agency record? Is there any way I can remove the Collection Agency record?

 

Thank You!

[Why Chat]

Hi everyone, thanks for looking.

 

I just checked on the bank and my Home Equity Line of Credit was frozen. I usually don’t keep money in my checking account because I owe money in HELOC, so I put all my money to pay for my debt. If I need money then I pull from HELOC. Now my HELOC frozen, that means I don’t have money to pay for my bill. I called the bank they said I have a drop on my Credit Report score.

 

I checked my 3 credit report and found out a Collection Agency reported for nonpayment and 2 Closed HELOC for 1 of each over 30 days late payment. I believe the 2 Closed HELOC will not affect me that much, but the Collection Agency as followed:

 

XXXX Collections

Agency Address: Address

 

Date Reported: 07/08

Date Assigned: 03/08

Creditor Classification: Medical/Health Care

Creditor Name: XXX Dental

Account Number: ######

Account Owner: Individual Account

Original Account Owned: $$$

Date of 1st Delinquency: 01/08

Balance Date: 07/08

Balance Owned: $$$

Last Payment Date: N/A

Status Date: 07/08

Status: D – Unpaid

Comments Medical

 

 

Can the bank just drop my HELOC because of just ONE Collection Agency record? Is there any way I can remove the Collection Agency record?

 

Thank You!

Is this a valid account that you owe??

When was your date of service??

If the account is fairly new, i.e. your date of service was within the last year then you need to pay it.

If you actually OWE the amount claimed, you can PAY the OC dentist what is owed with the HIPAA letter insert "a"

http://whychat.5u.com/hipltr.html

 

If the date of service is over a year ago, and/or the account as reported is inaccurate or not yours, then you need to dispute it to any CRA where this is being reported with this;

http://whychat.5u.com/hipaadisp.html

 

All kinds of credit lines are being tightened up or frozen. If you had been borrowing against your home equity to pay normal everyday bills and other creditors and your home has decreased in value, then you may have to consider BK.

[akii]

Is this a valid account that you owe??

When was your date of service??

If the account is fairly new, i.e. your date of service was within the last year then you need to pay it.

If you actually OWE the amount claimed, you can PAY the OC dentist what is owed with the HIPAA letter insert "a"

http://whychat.5u.com/hipltr.html

 

If the date of service is over a year ago, and/or the account as reported is inaccurate or not yours, then you need to dispute it to any CRA where this is being reported with this;

http://whychat.5u.com/hipaadisp.html

 

All kinds of credit lines are being tightened up or frozen. If you had been borrowing against your home equity to pay normal everyday bills and other creditors and your home has decreased in value, then you may have to consider BK.

 

Its a valid account owed $600 from my Dental insurance. (I saw a dentist on 03/2007 and insurance company mailed me the check, I gave the dentist another insurance and got paid. So the dentist billed 2 of my Dental Insurance for the same service and got 1 paid, but I believe I received 1 check from 1 insurance).

 

I heard that I can negotiate with the Collection agency from reading the post or I can just pay the CA and the record will be remove?

[Why Chat]

Is this a valid account that you owe??

When was your date of service??

If the account is fairly new, i.e. your date of service was within the last year then you need to pay it.

If you actually OWE the amount claimed, you can PAY the OC dentist what is owed with the HIPAA letter insert "a"

http://whychat.5u.com/hipltr.html

 

If the date of service is over a year ago, and/or the account as reported is inaccurate or not yours, then you need to dispute it to any CRA where this is being reported with this;

http://whychat.5u.com/hipaadisp.html

 

All kinds of credit lines are being tightened up or frozen. If you had been borrowing against your home equity to pay normal everyday bills and other creditors and your home has decreased in value, then you may have to consider BK.

 

Its a valid account owed $600 from my Dental insurance. (I saw a dentist on 03/2007 and insurance company mailed me the check, I gave the dentist another insurance and got paid. So the dentist billed 2 of my Dental Insurance for the same service and got 1 paid, but I believe I received 1 check from 1 insurance).

 

I heard that I can negotiate with the Collection agency from reading the post or I can just pay the CA and the record will be remove?

You can NOT negotiate with ANY CA .

 

As I understand your response, the bill was paid by one of your insurances but you got the check and didn't turn it over to the Dentist??

 

If you actually owe the $$ to the dentist then pay the DENTIST directly with the HIPAA letter insert "a"

 

http://whychat.5u.com/hipltr.html

 

If I have misunderstood your post and you DO NOT owe the dentist anything, then send the CRA's where this account is reporting this;

http://whychat.5u.com/hipaadisp.html

 

If the CRA's verify then send the reporting CA this;

http://whychat.5u.com/ltrcavalhipaa.html

[akii]

Why Chat, thanks for the quick reply.

I think I explained wrong. Sorry for the misunderstanding!

 

I went to see the dentist gave him insurance A, I probably got the check from insurance A but never saw any deposit in my banking account. Dentist called me, I gave him insurance B, he paid by insurance B. Insurance A saw that dentist complaint still opened so blamed me for deposited the check and directed to collection agency. So far the dentist not so satisfy with Insurance B payment because Insurance A paid more.

 

I believe I have to deal with the Collection Agency now, because CA got assigned to the case.

 

Hope it helps! Thanks again!

[Why Chat]

Why Chat, thanks for the quick reply.

I think I explained wrong. Sorry for the misunderstanding!

 

I went to see the dentist gave him insurance A, I probably got the check from insurance A but never saw any deposit in my banking account. Dentist called me, I gave him insurance B, he paid by insurance B. Insurance A saw that dentist complaint still opened so blamed me for deposited the check and directed to collection agency. So far the dentist not so satisfy with Insurance B payment because Insurance A paid more.

 

I believe I have to deal with the Collection Agency now, because CA got assigned to the case.

 

Hope it helps! Thanks again!

Contact the insurance Co. request a copy of the check they sent you with the endorsement information.

If the endorsement shows that you DID get the $$ you MUST return it to the Insurance Co.

 

The CA reporting is misrepresenting the account if they are reporting it as a "medical account".

Send the CRA's where it is reporting this;

http://whychat.5u.com/hipaadisp.html

 

If the account is verified send the reporting CA this;

http://whychat.5u.com/ltrcavalhipaa.html

 

If it is NOT being reported as a "medical account" post back here and let me know HOW it is being reported.

[akii]

Contact the insurance Co. request a copy of the check they sent you with the endorsement information.

If the endorsement shows that you DID get the $$ you MUST return it to the Insurance Co.

 

The CA reporting is misrepresenting the account if they are reporting it as a "medical account".

Send the CRA's where it is reporting this;

http://whychat.5u.com/hipaadisp.html

 

If the account is verified send the reporting CA this;

http://whychat.5u.com/ltrcavalhipaa.html

 

If it is NOT being reported as a "medical account" post back here and let me know HOW it is being reported.

 

The 3 main Credit Report all have different reports.

 

Equifax is the only one that posted:

Creditor Classification: Medical/Health Care

Comments: Medical

 

TU Posted:

Loan Type: Collection Agency Attorney

Remark: >Placed for Collection<

Pay Status: >Collection Account<

 

Experian Posted:

Type: Collection

 

I didn't know it matters if it is Medical or not. And my bank used Equifax which used Medical/Health Care so I posted the Equifax as references. Thanks for helping!

'

'

[Why Chat]

Contact the insurance Co. request a copy of the check they sent you with the endorsement information.

If the endorsement shows that you DID get the $$ you MUST return it to the Insurance Co.

 

The CA reporting is misrepresenting the account if they are reporting it as a "medical account".

Send the CRA's where it is reporting this;

http://whychat.5u.com/hipaadisp.html

 

If the account is verified send the reporting CA this;

http://whychat.5u.com/ltrcavalhipaa.html

 

If it is NOT being reported as a "medical account" post back here and let me know HOW it is being reported.

 

The 3 main Credit Report all have different reports.

 

Equifax is the only one that posted:

Creditor Classification: Medical/Health Care

Comments: Medical

 

TU Posted:

Loan Type: Collection Agency Attorney

Remark: >Placed for Collection<

Pay Status: >Collection Account<

 

Experian Posted:

Type: Collection

 

I didn't know it matters if it is Medical or not. And my bank used Equifax which used Medical/Health Care so I posted the Equifax as references. Thanks for helping!

'

'

OK, use the medical dispute letter for Equifax

http://whychat.5u.com/hipaadisp.html

 

Use this for the other 2 CRA's

http://whychat.5u.com/initdispltrsol.html

[akii]

Why Chat, do you have a sample letter for me for the insurance? After I called them, the insurance is requested a $50 from me inorder for me getting a endorsement check .

 

Just want to clarify, that I can dispute all reports to all CRA even I may owe them money? What is the purpose for disputing? Just make them work? or they will be too lazy and will dispute the report?

 

I really appreciate your help!

[Why Chat]

Why Chat, do you have a sample letter for me for the insurance? After I called them, the insurance is requested a $50 from me inorder for me getting a endorsement check . Send them a letter requesting a copy of the check as per the requirements of State and Federal anti fraud statutes, request that they provide the copy front and back without charge. State that copies of all correspondence will be forwarded to the appropriate State and Federal agencies if needed

 

Just want to clarify, that I can dispute all reports to all CRA even I may owe them money? What is the purpose for disputing? Just make them work? or they will be too lazy and will dispute the report? It is not a question of "lazy" it is the required first step in clearing up this mess as IF this is NOT your fault you need to be able to prove damages. You can't prove damages if you don't try to dispute this off your reports

 

I really appreciate your help!

[sercfm]

Just one point to consider. In New Jersey, the Dept. of banking and insurance now treats checks paid to subscriber and not forwarded to provider as insurance fruad.(theft by failure to make required disposition.)

[akii]

Just one point to consider. In New Jersey, the Dept. of banking and insurance now treats checks paid to subscriber and not forwarded to provider as insurance fruad.(theft by failure to make required disposition.)

 

 

I live in NY, does that law valid in NY?

[Why Chat]

Just one point to consider. In New Jersey, the Dept. of banking and insurance now treats checks paid to subscriber and not forwarded to provider as insurance fruad.(theft by failure to make required disposition.)

 

 

I live in NY, does that law valid in NY?

It is likely that the same laws apply in all States, however, I do NOT believe it can be applied to you in this case as the provider WAS paid, ( by your other insurance).

 

The problem is that IF you actually received the check, and IF it was "converted" to your own use you are liable for CONVERSION of funds under law, but NOT of insurance fraud.

 

You really need to see what happened to the check.

If nothing else, any claim against you by the CA would be for the benefit of the insurance Co., not the dentist, who WAS paid. The reporting CA has no verifiable collection account that could relate in any way to what is being reported. It is likely that it is NOT a valid collection account at all.

 

It is also possible that the check the insurance Co. says was sent to you was never actually sent, unless you were covered for the same service by two different insurance policies at the same time. It is likely that the check was cancelled/rescinded when notice of your OTHER insurance was received.

[akii]

I received a letter from 3 Credit union.

 

Experian and Equifax still have the negative report from CA above, but under it said I am disputing it. Which means no use....

Trans Union took it off...

 

The CA send me a copy of cashed check...

 

What should I do now?

 

[Why Chat]

I received a letter from 3 Credit union.

 

Experian and Equifax still have the negative report from CA above, but under it said I am disputing it. Which means no use....

Trans Union took it off...

 

The CA send me a copy of cashed check... front AND back??, if so WHO signed it, what account was it deposited into?? Are you talking about the one that was sent to the OC, or the one that was purportedly sent to you??

 

What should I do now?

 

[akii]

I received a letter from 3 Credit union.

 

Experian and Equifax still have the negative report from CA above, but under it said I am disputing it. Which means no use....

Trans Union took it off...

 

The CA send me a copy of cashed check... front AND back??, if so WHO signed it, what account was it deposited into?? Are you talking about the one that was sent to the OC, or the one that was purportedly sent to you??

 

What should I do now?

 

 

 

 

CA has front and back of the check. The signature was scrippled, cant recognize the signature and WITHOUT MY bank account number. The address was addressed to my home.

 

 

Thanks Why Chat!

[Why Chat]

I received a letter from 3 Credit union.

 

Experian and Equifax still have the negative report from CA above, but under it said I am disputing it. Which means no use....

Trans Union took it off...

 

The CA send me a copy of cashed check... front AND back??, if so WHO signed it, what account was it deposited into?? Are you talking about the one that was sent to the OC, or the one that was purportedly sent to you??

 

What should I do now?

 

 

 

 

CA has front and back of the check. The signature was scrippled, cant recognize the signature and WITHOUT MY bank account number. The address was addressed to my home.

 

 

Thanks Why Chat!

File a report with all the authorities,( police, sheriff's dept. State authorities, FTC) of fraud and forgery, send documentation of the filed reports, ( you will need an affidavit of forgery) to all parties concerned.

[akii]

Why Chat, I took another approach by agree to pay CA portion of amount which they agree to remove from my credit report within 10 days. Now I paid them and it still exist in my credit report. Is anyway I can send them a warning letter?

[Why Chat]

Why Chat, I took another approach by agree to pay CA portion of amount which they agree to remove from my credit report within 10 days. Now I paid them and it still exist in my credit report. Is anyway I can send them a warning letter?

Warning them for what?? Did you get a signed agreement that you can enforce??

You likely did not owe the $$ and threw your money down a CA rathole for nothing.

 

You have lost the opportunity to FORCE a deletion by legal means as you have "self validated" the account by taking "another approach".

 

Plus, by paying this one scam scum CA/JDB you have put a big bulls eye "KICK ME" sign on your rear end and will now how all the rest of the scum come out from under their rocks to poison your report.

Edited March 3, 2009 by Why Chat

[akii]

Why Chat, I took another approach by agree to pay CA portion of amount which they agree to remove from my credit report within 10 days. Now I paid them and it still exist in my credit report. Is anyway I can send them a warning letter?

Warning them for what?? Did you get a signed agreement that you can enforce??

You likely did not owe the $$ and threw your money down a CA rathole for nothing.

 

You have lost the opportunity to FORCE a deletion by legal means as you have "self validated" the account by taking "another approach".

 

Plus, by paying this one scam scum CA/JDB you have put a big bulls eye "KICK ME" sign on your rear end and will now how all the rest of the scum come out from under their rocks to poison your report.

 

Sorry Why Chat that I have to do it. I just received notice on end of Feb. from my employer that I may be lay off or cut in hours in March. I need to gain my credit back in order to get my credit line so I can use my credit line to pay off my mortgages if I am not employed. or else foreclosure my property.

 

If I have the money and time, I will definitely will do as you told. Just a short timing and bad economic...

Sorry again and thanks for you help!

[sntemp]

You have lost the opportunity to FORCE a deletion by legal means as you have "self validated" the account by taking "another approach".

 

If this is true then I would think it would be true for every person that has been advised here on how to handle a paid collection.

 

So are you saying that there is no legal way to force the deletion of a paid medical account?

 

Note: I know Whychat will not answer this so if anyone else cares to address it that would be great because I am currently following Whychat's letter plan and would really like to know if I'm wasting my time.

 

Thanks in advance.

[liquidone]

Why Chat, I took another approach by agree to pay CA portion of amount which they agree to remove from my credit report within 10 days. Now I paid them and it still exist in my credit report. Is anyway I can send them a warning letter?

Warning them for what?? Did you get a signed agreement that you can enforce??

You likely did not owe the $$ and threw your money down a CA rathole for nothing.

 

You have lost the opportunity to FORCE a deletion by legal means as you have "self validated" the account by taking "another approach".

 

Plus, by paying this one scam scum CA/JDB you have put a big bulls eye "KICK ME" sign on your rear end and will now how all the rest of the scum come out from under their rocks to poison your report.

 

Sorry Why Chat that I have to do it. I just received notice on end of Feb. from my employer that I may be lay off or cut in hours in March. I need to gain my credit back in order to get my credit line so I can use my credit line to pay off my mortgages if I am not employed. or else foreclosure my property.

 

If I have the money and time, I will definitely will do as you told. Just a short timing and bad economic...

Sorry again and thanks for you help!

 

 

Did your bank tell you they would re-open your heloc if you got this removed ?

 

They have no obligation to do so, so if you are doing all of this in a mad rush

to get your heloc reopened you better have a very firm indication from the

bank they will re-open, I read all your posts and didnt see you mention that.

If you are just assuming they will re-open it then you are in for a rude awakening.

I think they just used this as an excuse to close it because they are tightening

their credit.

 

If I had to bet, I would say they wont re-open it no matter what you do.

 

If that is the case then you paid this CA for no reason and now you

have even less money.

[Why Chat]

This thread is a classic example of how much trouble someone can get into and how much worse they make it by panic actions.

 

Here we had a CLEAR case of her bank freezing her HELOC because they were freezing ALL HELOCS and pulling credit reports to find the slightest excuse to give for the reason they were doing so.

 

There is NO WAY that she will get her HELOC reinstated even IF by some miracle the CA she paid actually deleted the account.

 

She has just poured $$ down a rathole and furthermore made it MORE difficult to clean her reports.