Delete a charge-off related to lawsuit?

[BoxCar44]

Is there a way to get the CRAs to remove/delete a charge-off from my file if the OC has updated it from a balance owed to $0 and transferred? I have tried to get it updated or deleted and only one CRA has changed it from a charge-off. This is the only neg reporting thing on my report but it's still there and it has cost me nearly 175 points.

 

So, the cliff notes version of my backstory goes a little something like this:

 

I had an account that I chose to close because they wouldn't give me a CLI. I was told I could set-up autopays for the remainder of my account balance until satisfied. About six months later I was applying for a loan to help pay for law school and got declined. I was surprised because my scores were all in the 700's. I discover that this closed line was reporting 120 days late. Im fuming at this point and seeing red. I contact them and they say I haven't made a payment since the account was closed and I proceed to argue with them that's not accurate. I subsequently check the account I set-up drafts from to see all the money still sitting there. I speak with a girl who informs me that I can pay the past due, minus the fees, and then continue paying the account down. I could also request the late fees and such to be removed or credited due to the clear misunderstanding.

 

I pay the nearly $1k and move on. About 10 days later I get a call from a CA that my account was sold to them. All HELL effectively breaks loose. I go through a BS circle of "he said" "she said" on my account and ultimately they refuse to correct their mistakes. The CA is confused because they see the large payment made and don't quite understand what has happened. While I proceed to escalate my complaint to the corporate offices of this bank and promise legal action if the now reporting charge-off isn't removed, the CA tells me they won't report anything on my credit if I want to just pay them the remaining balance. The catch is it has to be in full. So I agree, but it needs to be split up into two payments.

 

About 2 weeks after the first payment goes through, a collection account pops up on my credit reports. Need I say my eyes are once again seeing red?!?! I reach out to the CA and tell them they lied and violated an agreement. I accuse them of fraud and they guy tells me the rep that made the agreement with me "misspoke" but that he would speak with their legal team and see what they could do. I didn't hear back from him for a week and sent them an email which also served as my notice to file suit. They never replied. I blocked their access to my account and reached out to an attorney. After consultation, I proceeded to make good on my notice of filing a federal lawsuit against them for multiple violations, including breach of contract, attempt to defraud and FDCPA. Meanwhile, they continued to bury themselves by leaving vmails, all of which broke the FDCPA each time by not giving the "this is a debt collector and message only for Bld08" elevator speech, prior to leaving the message and two of them they admit to making a mistake by reporting the item and that they were trying to have it removed but that it would not really fix my credit score. My lawsuit is still ongoing, as it was filed in federal court on Sept. 4, 2014.

[mizliz1011]

Oh my god, you must be so angry. I had something like this with Bloomingdales a hundred years ago... it is so frustrating.

 

You need an attorney because they are ruining your credit and have violated lots of laws. May I suggest a thread here with reputable attorneys? I had a similar situation and it got fixed quite quickly. but you need a credit attorney who is reputable.

 

You can have it removed permanently and probably settled for less or have them pay your attorney's fees due to violations. These things always happen at the worst time. I am so sorry.

 

Use the legal thread here. You sound as if you know what you are doing more than most...get thee to an attorney and he may work for the violation fees alone on contingency. Good luck

[BoxCar44]

Thank you SO much and yes, angry doesn't begin to cover it. I do have a credit attorney though. He is who filed on my behalf in Federal Court and on contingency. Though a law student, I was too infant in my studies to feel confident enough to fight this on my own. The attorney did confirm most of what I had already worked up, on what to file for and how to approach, but he was expectedly much more well-versed in the subject matter.

 

My issue though is that the reporting is actually from the OC and not the CA. The OC is what had been reporting the lates and then subsequently the charge-off. Some of the reporting shows it as a transferred account, but others show charge-off. By law, they had every right, but the charge-off shouldn't have occurred. The CA removed their reporting, but my fight with them is that after my credit semi-rebounded from the lates and even the charge-off, the collection account is what sort of tanked me all over again. So I went after them. I am just wondering if I am stuck with the OC reporting of the charge-off OR if anything from the battle with the CA would help me?

[ICANHASMUNY?]

you should have gotten all the agreements in writing.

 

look up and read the Credit card Act of 2009

 

file a complaint with the CFPB.

[BoxCar44]

Thanks ICAN! I'll read up. I messed up on the writing. I let them slide with the offer to record the agreement. They claimed to have recorded it and allowed me to do the same. Difference is that they "lost" their copies and I have every single convo, including transcripts. The lawsuit ended in my favor. Default judgement because they never filed an answer. Now i wait on number. Wasn't seeking anything huge. Just making a point that they broke their agreement and cost me more than 150 points off my score. The item they reported is now gone, but the OC TL is still incorrectly reported and I'm fighting that battle now...

[ICANHASMUNY?]

Thanks ICAN! I'll read up. I messed up on the writing. I let them slide with the offer to record the agreement. They claimed to have recorded it and allowed me to do the same. Difference is that they "lost" their copies and I have every single convo, including transcripts. The lawsuit ended in my favor. Default judgement because they never filed an answer. Now i wait on number. Wasn't seeking anything huge. Just making a point that they broke their agreement and cost me more than 150 points off my score. The item they reported is now gone, but the OC TL is still incorrectly reported and I'm fighting that battle now...

 

Before you file a complaint with the CFPB,

 

read up on the dodd frank act -Unfair Deceptive Acts And Practices

 

http://creditboards.com/forums/index.php?showtopic=516960

 

 

and the OCC wrote up guidelines for banks selling debts. http://creditboards.com/forums/index.php?showtopic=532267

 

sounds like that was violated too.

[BoxCar44]

Thanks! This helps me out a great deal. I try not to be amazed when it comes to credit situations, but these folks truly surprised me in their choice of action. It's almost like they either didn't give a flip or they didn't think I would call them on it.

[ICANHASMUNY?]

Thanks! This helps me out a great deal. I try not to be amazed when it comes to credit situations, but these folks truly surprised me in their choice of action. It's almost like they either didn't give a flip or they didn't think I would call them on it.

 

BOTH.

[BoxCar44]

My lawsuit settled with a default judgement as the CA didn't answer the suit. They agreed to pay out a settlement and cancel the remaining balance of the account. The cancelled portion of the debt cannot be sold to be collected on in the future. Their reporting of the collection acct has also been deleted.

 

For the OC, I had to take a different approach. The charge-off was reported by them and had not been deleted. It took some work, but I sent my original formal complaint via email to many of their execs, legal counsel and others, including a few of the BOD (most are execs/CEOs of other businesses). I even found the email addy for the VP who ignored my voicemails. His name was mentioned throughout my orig. complaint because he was supposed to be the last resort before escalating to their ombudsman office. I sent my email on Dec. 31 (all the emails were Bcc except the corp email) and got a reply from the corp. office the next day. They said they were in receipt of my email and would be in touch with me soon. Today, I received a myFico update email. This update was from EQ. The charged off account status has been changed from bad debt; placed for collection TO Pays account as agreed. The description has been changed from Account Transferred or Sold Charged off account TO Closed or paid account/zero balance. My score went up 25 points with this update.

[ICANHASMUNY?]

:clapping:

 

never strike a phone deal with CSR's again.

 

Never settle over the phone with a CA.

[BoxCar44]

Thanks so much ICAN! I was so glad to see my scores change. I'm not where I was score wise, but my siggy scores for EQ are now 641/677.

 

And you are absocrappinlutely right! Lesson learned...a very hard, I should know better way...but learned.