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Feech

Has anyone heard of this before?

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So I'll ask the question first and then fill in the background info.  Has anyone heard of a credit card account be closed and then 3 years later that same account, same account number suddenly has 30 day late, then 90 days, 120 days, etc.  Then that same account goes to Charge Off? 

 

So here's the background.  I got into trouble in 2012 with a USAA CC, I can't remember exactly what happened but I did call them and have a record of paying them $3191.74 which is the amount they told me.  The limit of the card was 3K.  According to my credit report the account was closed in Oct of 2012 and it reported as closed all the way until Feb of 2015 when it started reporting as a late pay.  I have no statements from them, didn't even live at the same address.  5 months or so after the account was charged off for about 6 dollars.  I have disputed this at least twice with the results always coming back as verified.  This time though I really have time to dig into this though and called USAA directly.  Who I talked to said it didn't make a bunch of sense and told me they would investigate and to call back in 9 days.  Today was day 9 and I called.  Spoke to the same lady who was very nice and remembered me.  Bottom line she said her research dept had verified again but had no answers to my questions.  Why did the account go from closed to charged off after 3 years and what was the balance of the card the day before I made that last payment.  I explained that it made no sense for me to short a final payment by $6.00, and its not about me paying the money.  Its about me  resurrecting a zombie account that would be brand new and stay on my report for 7 years.  

 

I believe the $6.00 is from interest and if that's the case it should have been reported in 2012 and falling off the account last month or maybe this month but not stay on my report until 2022 based on the 3 year gap when it started  reporting as a charge off.  The problem is USAA hasn't even been able to tell me where this 6 dollar balance is coming from. Am I crazy? 

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Have I heard of it?  Yes.  Happens from time to time, usually through a merger/acquisition event.  However, I have also seen quirks in reporting that came simply from changes in software or, alternately, a lender just finally hiring someone that knows how to operate the software that was in place.  Fix the programming and all of a sudden reporting becomes current...

 

You discuss troubles in 2012.  Did the account go delinquent at that time or was this simply closed? 

 

If it was delinquent at the time and the drop-off date has not changed, then there is no impropriety.  Inconvenience, sure.  But not improper conduct. 

 

That being said, it is old enough that a dispute on TU should get it to go away and you COULD even get lucky with EQ and EX

 

If the account was actually paid off in 2012 save for the nominal amount, then I would suggest remaining with the sugar approach and deal with them while they try to sort issues.

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12 hours ago, Feech said:

So I'll ask the question first and then fill in the background info.  Has anyone heard of a credit card account be closed and then 3 years later that same account, same account number suddenly has 30 day late, then 90 days, 120 days, etc.  Then that same account goes to Charge Off? 

 

So here's the background.  I got into trouble in 2012 with a USAA CC, I can't remember exactly what happened but I did call them and have a record of paying them $3191.74 which is the amount they told me.  The limit of the card was 3K.  According to my credit report the account was closed in Oct of 2012 and it reported as closed all the way until Feb of 2015 when it started reporting as a late pay.  I have no statements from them, didn't even live at the same address.  5 months or so after the account was charged off for about 6 dollars.  I have disputed this at least twice with the results always coming back as verified.  This time though I really have time to dig into this though and called USAA directly.  Who I talked to said it didn't make a bunch of sense and told me they would investigate and to call back in 9 days.  Today was day 9 and I called.  Spoke to the same lady who was very nice and remembered me.  Bottom line she said her research dept had verified again but had no answers to my questions.  Why did the account go from closed to charged off after 3 years and what was the balance of the card the day before I made that last payment.  I explained that it made no sense for me to short a final payment by $6.00, and its not about me paying the money.  Its about me  resurrecting a zombie account that would be brand new and stay on my report for 7 years.  

 

I believe the $6.00 is from interest and if that's the case it should have been reported in 2012 and falling off the account last month or maybe this month but not stay on my report until 2022 based on the 3 year gap when it started  reporting as a charge off.  The problem is USAA hasn't even been able to tell me where this 6 dollar balance is coming from. Am I crazy? 

 

It likely is residual interest.  

 

USAA is really great until they screw up and when that happens their screw-ups tend to be major.  I would tend to classify yours as one of their major screw-ups.  They should not have let the account report as satisfactory until 2015 if you owed them interest from 2012.  The DOFD on that residual interest should be no later than 90 days after the date of account closure.  It would have to drop off your credit reports around February of 2020.

 

Still, USAA was negligent in how this was handled.  They shouldn't have waited two years to report correctly.  During those two years, did they write you / send you statements?  Did they call you?  If they did send statements, why didn't you get them?  Didn't you have your mail forwarded to your new address?  Didn't you have a cell phone number on your profile?

 

Have you tried their EO?  If that doesn't work, I'd try a CFPB complaint.  Lately USAA has been getting clobbered by the CFPB and banking regulators.  They might take a complaint to the CFPB seriously.  

 

If you can find any FCRA / FDCPA violations, I might sue them.  I seriously doubt they will spend several thousand dollars to fight a suit over their $5 screw up.  

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Here's how I would handle this:

 

First, call and request copies of all statements starting from the date at which the account was last at a current status  forward.  Pay any reasonable fees for statement copies.

 

Once you've had a chance to review the statements in order to establish a firm grasp of the history on the account, call and ask for goodwill consideration to remove the delinquency notations from your credit report.  I would hope that they would be agreeable (without too much elaboration in stating the request), assuming that $6 is the only amount involved, given the impact on your credit scores.

 

Up to you on how you proceed, but in any case I wouldn't take any action unless you have a clear understanding of the reporting to date and there's no chance they can throw you a curve ball in reply.

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Thanks for the advice. All of it is good. I will check back in after I speak with them this Wednesday. I think what really upsets me is the fact that when I disputed this they verified and then pushed the fall off date to 2022. 

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I spoke to USAA today.  I ended up filing a complaint with CFPB.  I was really nice but I just didn't get what I wanted from them.  The lady I spoke to did say it was interest but she also said that it shouldn't have shown up 3 years later.  That it actually should of charged off 219 days after the last payment but for whatever reason it didn't happen.  When the complaint asked for a resolution I asked for either a pay for delete or report the tradeline correctly with the correct interest from last payment to the correct charge off date and then update the fall off date.  

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It is my understanding that the creditor has 180 days from the DOFD to charge the account off. This was done to prevent the creditor from extending and setting the 7 year period however they wanted to. Many years ago, this use to be a common practice, where creditors would wait years before writing the account off as a loss.

(Note this older advisory)

https://www.ftc.gov/policy/advisory-opinions/advisory-opinion-amason-02-15-00

Edited by tmcgill

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On 11/13/2019 at 4:12 PM, Feech said:

I spoke to USAA today.  I ended up filing a complaint with CFPB.  I was really nice but I just didn't get what I wanted from them.  The lady I spoke to did say it was interest but she also said that it shouldn't have shown up 3 years later.  That it actually should of charged off 219 days after the last payment but for whatever reason it didn't happen.  When the complaint asked for a resolution I asked for either a pay for delete or report the tradeline correctly with the correct interest from last payment to the correct charge off date and then update the fall off date.  

 

I'm a bit confused about what you asked USAA to do to resolve this, and what their response was.  (This could be on me .... I've been dealing with intricacies of mortgage qualification today and my brain's more than a little fried.)

 

I had hoped that given the modest amount and the questionable handling that you asked them to extend a courtesy deletion of the entries related to the interest.

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3 hours ago, tmcgill said:

It is my understanding that the creditor has 180 days from the DOFD to charge the account off. This was done to prevent the creditor from extending and setting the 7 year period however they wanted to. Many years ago, this use to be a common practice, where creditors would wait years before writing the account off as a loss.

(Note this older advisory)

https://www.ftc.gov/policy/advisory-opinions/advisory-opinion-amason-02-15-00


I've heard that the IRS also requires write-offs within a certain time frame.  

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1 hour ago, hdporter said:

 

I'm a bit confused about what you asked USAA to do to resolve this, and what their response was.  (This could be on me .... I've been dealing with intricacies of mortgage qualification today and my brain's more than a little fried.)

 

I had hoped that given the modest amount and the questionable handling that you asked them to extend a courtesy deletion of the entries related to the interest.


I wouldn't be surprised if USAA politely told him to shove off.  Don't get me wrong as I like USAA, but sometimes they just have their head up their butt and simply don't care.

 

There was an issue a very short while ago with their pre-approved offers.  Hundreds that I know of received them and were promptly shot down upon applying.  I didn't pay much attention to it until my wife got one and decided to apply.  I thought it was strange that they'd send her a pre-approval since we are both far over their credit card maximum exposure, but she still tried only to get an instant decline for already having limits "in excess of what our policy allows".  
 

But they didn't need to pull her credit reports to determine this.  They should already have known it.  When talking to them they said, "Sorry, but that's life."  I have a contact in their EO who usually comes through for me, but she also said that there's not much they can do about it.  A nice LART from the CFPB and they got religion.  

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2 hours ago, PotO said:


I wouldn't be surprised if USAA politely told him to shove off.  Don't get me wrong as I like USAA, but sometimes they just have their head up their butt and simply don't care.

 

Quite possibly; yet, without any further info to go on, we have no idea if the query was even posed before moving onto the CFPB (which is become more toothless with each passing day).  That's the ultimate thrust of my comment ... if you don't make a push for what you want when the opportunity arises, you may end up having simply wasted your time.

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On 11/14/2019 at 6:05 PM, hdporter said:

 

I'm a bit confused about what you asked USAA to do to resolve this, and what their response was.  (This could be on me .... I've been dealing with intricacies of mortgage qualification today and my brain's more than a little fried.)

 

I had hoped that given the modest amount and the questionable handling that you asked them to extend a courtesy deletion of the entries related to the interest.

Well the woman I was speaking to was nice enough but it seemed like she didn't understand what I was asking for. I wanted a confirmation that based on what she was telling me that they would update my reports accordingly. She acknowledged that the account definitely shouldn't have taken 3 years for it to spit out what was then a 3 dollar charge and that the account should not have been updated once it was closed. 

But what she told me was to dispute with the CRAs again and I refuse to at this point. I'm just asking for them to update accurately. I did get an email from USAA on Friday saying they received the complaint and would be in touch within 3 business days. 

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