cfpb response / 623

[dockworker]

Need some advice here, not sure how to proceed. Brief timeline of events:

 

Disputed OC to all three reports, it came back verified although certain properties of tradeline are reporting differently to each report...

Submitted 623 letter to OC requesting an investigation, twice. Each time I got a letter back saying the account was sold to Riverwalk Holdings and to contact them.

 

The OC is the one reporting it though,.. after 2nd 623 letter came back same canned response, I submitted CFPB complaint. Their response was the same thing essentially. Here is an excerpt:

 

"

(OC) no longer owns the rights to this account, we are contractually obligated to forward your dispute to the

owner for review and processing, and we are prohibited from releasing any further information. If

you have conflicting payment dates, copies of the billing statements reflecting all transactions,

payments, and balance history may be requested and disputed with Riverwalk Holdingns, LTD

"

Hrmm.. The OC reports the tradeline on my reports and not Riverwalk, its marked as charged off and not updating or anything. My question is.. whom did all three CRA verify the disputes with then? OC is telling me since they charged off the account and sold it, they are under no obligation to update and verify accuracy (or remove) the tradeline.

Am I wrong in believing that OC must comply with section 623 and provide results of investigation?

Side note: I was sued for this account by a separate JDB, not Riverwalk, and hired a lawyer, at which point said company was granted motion to dismiss without prejudice - we sued them back on grounds of fraudulent affidavit and settled, the debt itself is void and cant be transferred/sold/reported anywhere as part of settlement. So, not worried about this popping up as a collection anywhere, just trying to get OC to tell me why 3 sets of conflicting information came back as verified accurate on 3 different reports.

[dockworker]

one more question please.. if all else, since JDB agreed to not report it anywhere, wondering what my odds are that I could provide the settlement agreement to get the original tradeline off the reports? I assumed that it would only apply to JDB reporting a collection account aside from the OC tradeline.

[walterg55]

The OC only has to include in their reporting that the balance is zero and that debt has been transferred/sold. Your former JDB likely has violated his agreement with you. It means nothing unless the new JDB begins trying to collect or reports. If you are comfortable with the settlement agreement, I would send a letter to new JDB with a copy of the agreement and a warning. They may very well return the debt to the orginal JDB. I would also warn the old JDB you are aware of their violation and you will take action if you are damaged in any way. You have zero chance of getting the OC to delete based on an agreement they had nothing to do with. From this point forward, a paper trail is very important. Do nothing by phone all communication should be in writing.

Edited December 5, 2013 by walterg55

[Menta33]

I'm interested in this too, I have an HSBC CC account that was IIB that was sold, post filing, pre discharge, to PRA BK ACCOUNTS. When I 623(ed) HSBC, they said the account was sold and to contact new owner, but the account reports as HSBC still on my credit report. Experian states in the HSBC trade line: "Sold to: SOLD PRA BK ACCOUNTS" Experian also states: "Creditor's Statement: Purchased by another lender." HSBC gave me PRA's phone number to contact with further questions: (800) 388-5333.

[dockworker]

The OC only has to include in their reporting that the balance is zero and that debt has been transferred/sold. Your former JDB likely has violated his agreement with you. It means nothing unless the new JDB begins trying to collect or reports. If you are comfortable with the settlement agreement, I would send a letter to new JDB with a copy of the agreement and a warning. They may very well return the debt to the orginal JDB. I would also warn the old JDB you are aware of their violation and you will take action if you are damaged in any way. You have zero chance of getting the OC to delete based on an agreement they had nothing to do with. From this point forward, a paper trail is very important. Do nothing by phone all communication should be in writing.

 

Thanks for the response. The only thing reporting in regards to this is the OC tradeline which is reported as charged-off/sold and balance 0. JDB1 and JDB2 are not reporting anything. I sued/settled JDB2. OC says to contact JDB1 regarding any information regarding the tradeline as it was sold to them.

 

I'm guessing the settlement agreement with JDB2 just means they can't add their own collection account tradeline on my reports. But I'm confused because OC is saying they won't have anything to do with this even though they are on my reports (and who/how was this verified?).

 

I guess I will call each CRA and ask them to explain their method of verification in the initial dispute.

[dockworker]

Bump...

 

Anyone else had an OC refuse to comply with 623 letter on the grounds that they no longer own the debt they can't/won't (yet they still will keep reporting the original tradeline)?