Capital One is a debt collector......

[funkiehouse]

Capital 1 may be a debt collector in my situation.... Please take a look and tell me what you think.

 

Sorry, I know this is long.

 

Background:

 

There are 2 HSBC CC accounts that are reporting as COs on my report as HSBC with the Cap 1 Carol Springs address. I'm almost 100% positive that they were actually with other companies before HSBC as well.

 

Both cards were (per credit report(s)):

Issued mid to late 2006

Closed in mid 2009

CO in late 2010

Both are reporting a zero balance

 

Cap 1 officially acquired HSBC CC on May 1, 2012 (as far as I can tell from the reports on the interweb)

 

Since my accounts were sold to Cap 1 after being CO by HSBC, means that Cap 1 bought a CO debt and therefore are attempting to collect a debt. The act of reporting the tradeline on my credit reports shows an attempt to collect a debt, just as a JDB would use reporting to help collect a debt. Case law to back up this argument: Kimber v. Federal Financial Corp. http://www.leagle.com/decision/19872148668FSupp1480_11940

 

Cap 1, or maybe HSCB, sold the debt to another party per my credit report. Since Cap 1 is a debt collector in this situation, and they have since sold the debt to another debt collecting party, they shouldn't be allowed to continue to report these accounts because (1) they are not the OC and (2) they no longer own the debt because they sold it to another party. If a debt collector or JDB sells a debt, I don't believe they can continue to report it. Therefore, I believe they are in violation of the FCRA.

 

If Cap 1 is a debt collector in my case, they would have been required under FDCPA 15 USC 1692g(a)3 to send: a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector. Since they never sent me this notice after acquiring the debt they are in violation of the FDCPA.

 

I could keep going with what I believe are violations, but I'll spare you. The key here from what I have read is that a debt sold to or acquired by another company after that debt is delinquent and charged off, that legally defines that company as debt collector for that debt, in my opinion and from what I have read. I also never applied to Cap 1 for either of these accounts, therefore they have no ability to claim they are the OC.

 

Thoughts?

Edited November 23, 2013 by funkiehouse

[pennypoor]

Hmmm. You make a good point. I'm in a similar boat here as well.

[ICANHASMUNY?]

since they bought out HSBC, they are considered creditors under the banking laws and a debt collector pursuant to the FDCPA.

 

if these are reporting as $0 balance and sold,

 

it should be marked; paid

 

because it was.

 

it's a nice argument, but the CRA's won't buy it unless you file a complaint with the CFPB and they take your side.

 

the charge off's have to occur within 180 days of no payments. OCC rules.

 

hsbc had over 70 private label cards.

[funkiehouse]

Yeah, the CFPB would be the route I would take this. Funny thing is that I paid these off while still in good status, yet they are reporting as COs. I thought about the banking laws too but since it was a CO before the acquisition I thought the FDCPA part has the potential to stick as a defense. I have a complaint ongoing with the EO for about a week now because I requested documentation after my disputes keep coming back verified. Since it's taking this long already I'm thinking either Cap 1 no longer owns it or they are having difficulty finding the records. Or they could just be taking their time. I briefly mentioned in my complaint that they were subject to the FDCPA, not anywhere to the extent above, so they may be looking into that. Even if they were owned by someone before HSBC it doesn't apply here anyway but I just threw that in.

[funkiehouse]

Here's a copy of TU and EQ - The other thing that I noticed that I mentioned in my dispute was that the addresses are different for these tradelines, yet the both came back verified after disputes.

 

 

[ICANHASMUNY?]

lots of banks keep these open and charge fees and still pay the auto pays unless you send a notice in writing about a " hard Close"

 

 

have any old statements? or old reports that show a $0 balance?

[funkiehouse]

I have been going through old papers but haven't found anything yet. I still have a bunch in storage in the basement. I'm not very positive that I will have anything that can prove this as I didn't think any issues would come from those accounts. I save everything now. I'm guessing I didn't check my reports until about 2 years after they were closed so I didn't catch it in time. The results of the EO complaint will tell me a lot more or hopefully just get them deleted. I wanted them to try to find documents so they could update them to good accounts again but then again not having sub prime cards on my reports might also look better. There's no way I would have let an account be charged of with $151 due.

[ICANHASMUNY?]

$ 151 sounds like the yearly account fee with interest.

 

and you may have not received any statements on it.

 

I'd file a complaint - when a bank buys out accounts, they assume all Liabilities along with the Assets

 

read up on the Card Act of 2009 - it's the primary reason HSBC got out of the American marketplace.

 

http://creditboards.com/forums/index.php?showtopic=482478

[funkiehouse]

Thanks a bunch for the help!!