LOC CHARGE OFF BANK CLAIMS PG

[jester]

I left an S Corp 4 years ago after we sold the business and paid off the debts. My former bp kept the corporate

accounts to try another business and was unsuccessful. Six months ago I noticed $4270.00 show up on my personal

credit report which I knew nothing about. I called the bank and they said I owed this money due to a default on the

corporate account. I called my partner who said he had been the victim of identity theft which he had reported to the bank and CBs. I filed a police report and disputed the charges with the bank and CBs.

 

I told the bank these charges were fraudulent and requested verification in writing from the bank of any document I had signed which would hold me personally liable for this debt. The bank provided no verification so I have not paid the debt. The Bank Claims I had PG for the account. Now I noticed it has been charged off on my credit report. I dont know what to do next. I called the bank (Chase) yesterday and was on the phone for 1.5 hours trying to dispute the charges and was repeated transfered to other departments. The account was originally opened in the corporate name and I don't remember any PG. The original acct was with WaMU and transfered Chase. Is the bank required to provide signed documentation? What are my options?

[BRBiz]

Ya the banks needs to provide signed paper work stating that you PG'd this account. What I would do is file a claim in civil court for the amount they are claiming you own them. This seems to solve any problems I have with other companies 99% of the time it won't make it to court

[shubbardman]

Your saying it is fraudulent business debt and the bank is saying your responsible. If your name was on the account as a guarantor, then you are responsible unless you can prove fraud.

 

I agree with Brndnh721, your probably going to have to file a civil suit to clear it up. In my opinion, the merger has caused the lenders to do a lot of write-off's because they do not have the man power to do their due diligence. It is doubtful they will respond due to the small dollar amount.

[greywolf]

Before you get into fraud claims, I would question the validity of the debt in terms of your responsibility. They cannot attack you personally, for a debt that was held by a business and not personally guaranteed. Send a dispute to the CRAs for which the account is reported on, stating unknown debt. It should be removed within 30 days.

 

Next, I would request complete documentation of the account, including any and all opening documents. Do not mention anything about a PG to Chase at this point. You need to get all the documentation you can for the account before you can begin to defend yourself. If they do respond to your request (which is unlikely), make sure they have provided you with a copy of every piece of paperwork you might have signed you name on. This is important, as many CAs and JDBs have been know for forging signatures to prove their case.

 

Now, if you have all the paperwork, and you can prove you did not PG, you can do an all out attack on Chase. Depending on the amount of the debt, Chase may fold, or just sell the account to someone else. If this is a large amount (100k+) be prepared to litigate, possibly with lawyers. You may want to get copy of any documentation you have showing the business transferred, and assumption of liability.

[BRBiz]

Your saying it is fraudulent business debt and the bank is saying your responsible. If your name was on the account as a guarantor, then you are responsible unless you can prove fraud.

 

I agree with Brndnh721, your probably going to have to file a civil suit to clear it up. In my opinion, the merger has caused the lenders to do a lot of write-off's because they do not have the man power to do their due diligence. It is doubtful they will respond due to the small dollar amount.

 

For $4000 if they aren't a 100% in the right they will clear it up before the court date comes around. Go file claim in court!

 

I have found lately that companies are un willing to listen to any thing any one says. I'm in the process of bringing Verizon wireless to court due to them not refunding $220 back to me for a phone I returned from one of my accounts with them , this is after calling about 8 times and getting no where and they had sent me a bill for $960 which should have been $90 and that took 6 calls to get corrected but still no refund so court time.

Its not even the money its just the point .

 

Keep in mind most large companies aren't going to spend thousands on lawyers to try to collect $2000 if they aren't a 100% sure about the debt

[800FICO1]

It's time for you too seek legal counsel and have your attorney file a brief asking for Temporary Injunctive Relief in the Federal courts under US CODE 122a I believe this will offer temporary relief making them remove that negative information from your credit reports immediately till your suit works it's way through the court system. This is the most effective but expensive *temporarily* too get it removed because once they are served with a copy of the summons complaint there will be an ORDER attached and they must comply within 25 days or they lose by default. Plus they know you mean business if you go straight to Federal first other then going through State court first.

 

I can speak to this because I've gone through something similar too your situation, and in my situation they removed all negative information before the first status conference and settled the case by just paying my attorneys fees. So I won but just didn't receive any monetary damages for myself....but that was fine I achieved what I want too they remove they information and their was no out of pocket.

 

Good luck to you.

Edited February 7, 2010 by 800FICO1

[jester]

Thanks to everyone for the good ideas on how to handle the situation with Chase.

A civil suite in small claims court sounds very good to me since it is less money to file.

I am concerned filing in a federal court might cost more than the $4500 in question.

 

Chase just charged it off in January, how would that affect a civil suite? Could they claim

they dont own the debt now it went to CA or it is so recent Chase still has it? If it does go

to CA do I still file a civil suite? How do I find an address to put on civil suite?

 

I have asked the bank

many times in writing and verbally on the phone to send documentation of any contract I would have

signed. All requests were ignored. I even had a lawyer send a letter requesting the documentation.

with a returned receipt for a paper trail.

 

The original account was with WaMu who only kept paper records and probably has lost it.

I dont believe Chase has the orginal paper contract from when the account was transfered.

I dont either. Hindsight is 20/20.

[BRBiz]

Thanks to everyone for the good ideas on how to handle the situation with Chase.

A civil suite in small claims court sounds very good to me since it is less money to file.

I am concerned filing in a federal court might cost more than the $4500 in question.

 

Chase just charged it off in January, how would that affect a civil suite? Could they claim

they dont own the debt now it went to CA or it is so recent Chase still has it? If it does go

to CA do I still file a civil suite? How do I find an address to put on civil suite?

 

I have asked the bank

many times in writing and verbally on the phone to send documentation of any contract I would have

signed. All requests were ignored. I even had a lawyer send a letter requesting the documentation.

with a returned receipt for a paper trail.

 

The original account was with WaMu who only kept paper records and probably has lost it.

I dont believe Chase has the orginal paper contract from when the account was transfered.

I dont either. Hindsight is 20/20.

 

If they charged it off and haven't sold it yet you would still bring them to court, if they did sell it to a collection company then bring them to court and if they dont have the paper work they will lose.

 

Call up Chase and ask them for the address for legal documents to be sent and use that , I'm sure they still own it if they just charged it off.

 

Or just use the address for billing, if it does get to the right dept. and they dont show up for court you win by default

Edited February 7, 2010 by Brndnh721

[jester]

Any advice on how to structure the small claims statement. I looked at the legal

forums and nothing seems to fit my situation. I am not trying to get any money

for damages only to have the debt taken off my credit report.

[BRBiz]

Any advice on how to structure the small claims statement. I looked at the legal

forums and nothing seems to fit my situation. I am not trying to get any money

for damages only to have the debt taken off my credit report.

 

I dont know how you want to word it but sue them for the full amount they owe you because that is what you have to pay them and add on some money for time you need to invest in fighting this. In Massachusetts I used the term fraudult business practices when I filled my claim, because basically they are trying to collect money you dont really owe them.

You may want to go to a website like justanswer.com and ask a lawyer on ther usually they are pretty helpful you do pay a little something though