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Momof3bboys

How to remove a business bank account from my personal credit report

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I opened a business bank account with an ein a couple of years ago. The account was eventually charged off due to the business closing. Now the bank account is reporting on my personal credit as a loan. I’ve disputed it numerous of times with the credit bureaus and have sent proof that it’s a business checking account. Experian and Equifax refuses to remove this account even though they know that

its a business checking account. What else can I do to get it removed 

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If you had an OD LOC you'll need to check the terms. It most likely was PG'd by the business owner whose SSN was on the account. Unless you have a big corporation, they always require the owner's SSN to open the account and if you check the terms, you are likely personally liable. 

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On 3/13/2020 at 9:05 AM, Momof3bboys said:

I opened a business bank account with an ein a couple of years ago. The account was eventually charged off due to the business closing. Now the bank account is reporting on my personal credit as a loan. I’ve disputed it numerous of times with the credit bureaus and have sent proof that it’s a business checking account. Experian and Equifax refuses to remove this account even though they know that

its a business checking account. What else can I do to get it removed 

This was not a LOC account. This was just a business checking account. I didn’t receive any loans, LOC or credit cards for this business from the bank that opened the checking account

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Exactly WHO is reporting it?? The Bank or a CA?? What amount are they reporting?? Check your records and see if there were overdraft fees or bank charges. What State are you in??

Try this;

https://whychat.me/GUIDEBOOK.html

 

https://whychat.me/SOL PROGRAM GUIDE.html

 

You say"eventually charged off" exactly WHEN??

The initial dispute letter may get you some results;

https://whychat.me/initdispltrsol.html

 

If a CA is reporting overdraft or other bank fees you may have additional recourse depending on your State. If the bank itself is reporting, then you may be able to file a complaint against them.

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19 hours ago, Why Chat said:

Exactly WHO is reporting it?? The Bank or a CA?? What amount are they reporting?? Check your records and see if there were overdraft fees or bank charges. What State are you in??

Try this;

https://whychat.me/GUIDEBOOK.html

 

https://whychat.me/SOL PROGRAM GUIDE.html

 

You say"eventually charged off" exactly WHEN??

The initial dispute letter may get you some results;

https://whychat.me/initdispltrsol.html

 

If a CA is reporting overdraft or other bank fees you may have additional recourse depending on your State. If the bank itself is reporting, then you may be able to file a complaint against them.

The bank is reporting it to the credit bureaus as a 1 month loan that charged off in June 2018. It was a business checking account that was opened in March 2017 and closed in May 2018. The credit bureaus have all the documents to prove that from me and the bank that it was never a loan but an actual business bank account. However, they refuse to remove it because the bank doesn’t have business reporting only personal(per Equifax and Experian). I’ve disputed the bank with cpfb and the bureaus and have gotten no relief. I’m in Arizona btw

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Posted (edited)
2 hours ago, Momof3bboys said:

The bank is reporting it to the credit bureaus as a 1 month loan that charged off in June 2018. It was a business checking account that was opened in March 2017 and closed in May 2018. The credit bureaus have all the documents to prove that from me and the bank that it was never a loan but an actual business bank account. However, they refuse to remove it because the bank doesn’t have business reporting only personal(per Equifax and Experian). I’ve disputed the bank with cpfb and the bureaus and have gotten no relief. I’m in Arizona btw


You say it was a business account but not a loan.  Can you clarify the exact type of account?  Was it a business checking account?  If so, did they cover a check that would have bounced/returned written from the account?   And were you ever a personal guarantor when you opened the account?  
 

From reading the vague responses and descriptions thus far I am assuming the answer to the last 3 questions is “yes” in some form or fashions.  And if so then the terms of service when the account was opened may have defined any unpaid overdraft (shortage) in the account be treated as a single payment “loan” for servicing purposes.  

Edited by gerray

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"gerray" is correct, however you haven't said if the amount being reported is higher than any overdraft or associated charges might have been.

you say you opened it as a business checking account with an ein--was it a DBA? If so then you are personally responsible. Only if it was a Corp. would you have reason to object to having it on your personal reports.

In any case, it won't hurt for you to dispute it to the CRAs as per my instructions:

Try this;

https://whychat.me/GUIDEBOOK.html

 

https://whychat.me/SOL PROGRAM GUIDE.html

 

The initial dispute letter may get you some results;

https://whychat.me/initdispltrsol.html

 

 

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Posted (edited)

A business closing does not result in a bank account (personal OR business) being charged off.  There was a deficiency status that existed in order for that to have occurred.  If an account has overdraft protections, then an overdraft would often have been shoe-horned into a loan status since the bank DID loan funds to cover the over-draft. 

 

The manner in which the business AND the bank accounts were structured will drive much of how this situation resolves itself.  However, given the business component, remember also that many of the federal consumer provisions of law won't be applicable here...as such, cut and paste avenues will do more harm than good.  Once you have retrieved copies of the actual records that reflect your role with respect to the account and the deficiency, better guidance can be offered by the collective body.

 

Edited to add that, once you have all of the documents in order with respect to the deficiency, you MAY find a modicum of relief through a professionally-styled letter written and submitted to the FDIC.  They tend to be very responsive to letters where there has been actual error made by a bank subject to FDIC oversight...

Edited by centex

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On 3/14/2020 at 1:57 PM, Momof3bboys said:

This was not a LOC account. This was just a business checking account. I didn’t receive any loans, LOC or credit cards for this business from the bank that opened the checking account

Overdraft protection is a LOC. You can't just walk away from a business checking account you PG'd and expect no repercussions. 

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On 3/16/2020 at 6:04 PM, shifter said:

Overdraft protection is a LOC. You can't just walk away from a business checking account you PG'd and expect no repercussions

On 3/15/2020 at 9:37 AM, gerray said:


You say it was a business account but not a loan.  Can you clarify the exact type of account?  Was it a business checking account?  If so, did they cover a check that would have bounced/returned written from the account?   And were you ever a personal guarantor when you opened the account?  
 

From reading the vague responses and descriptions thus far I am assuming the answer to the last 3 questions is “yes” in some form or fashions.  And if so then the terms of service when the account was opened may have defined any unpaid overdraft (shortage) in the account be treated as a single payment “loan” for servicing purposes.  

This was a business checking account set up for a LLC and a EIN was used to open it. The bank asked for my SSN as proof of who I am. At least that’s what they told me. I never was a personal guarantee for the business. Never accepted a loan, LOC, or credit card for this business. Another business wrote my business a check for service. The check cleared and funds were used. The amount of the check was $18k. Then 3 weeks later, the bank reversed the check and it left the business in the negative. Their reason for reversal was that I didn’t have the right to open the checking account because the corporation papers show someone else as the resident agents so that person have to be the owner. I explained that they were only the registered agent and I was the owner. I provided proof that I was the owner. The bank decided to still close down the account. Fast forward to a year later, I contact that bank to pay the fees associated with the account and was told that they didn’t have any charged off account associated with me or my business. A few months later, the charge off appears on my personal credit bureau as a loan for 1 month. Nowhere in the paperwork that I signed at opening does it say that if/when charged off, it will report to personal credit report.

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