Dealing with Professional Bureau of Collections of Maryland, Inc.

[nferra2]

I need to settle ONE single account to qualify for a Mortgage.  I haven't missed a payment since 2016, we had huge natural disasters that shut down our business for several months.

 

OC Pentagon Federal Credit Union - Credit card

 They closed the account after I made a large payment, I think it was $14k, they said that was fraudulent.  The Credit limit I believe was $24k and they are claiming I owe over $24k now.  The account is past SOL.  

 

I tried to call and settle and they don't want to budge much.  I did get them down to 50% of the claimed debt, I don't agree wit their amounts though.  I know, never call, only write, but I just wanted to see where they were at.

 

After the call ended I wrote a verification letter, for some reason Penfed sent me a new notice earlier this month stating the debt and that it was assigned to PBCM with a verification notice so I had that to work with.

 

My next plan is to dispute all the inaccuracies being reported on each bureau but honestly I would settle, but I am not settling for 50%, I am closer to 10%.  I know I sort of rambled, but any advice? 

[centex]

WHO is reporting and HOW does the account appear on the paper reports?

 

Has PenFed actually sold the account or simply placed it (meaning PenFed still owns the paper)? 

 

Yes, both are relevant to how best to quickly address this for the purposes of a mortgage....

 

 

Edited to add two additional questions:

 

1) what happened to the $14K payment?

2) did you simply quit paying when they closed the account?

Edited January 20 by centex

[nferra2]

On two reports it is being reported by Penfed as charged off, zero balance, "transferred or sold"  One report it is being reported by PCM as an active account, that is the one that is the hold up.  

 

The letter I was sent is titled "Assignment letter" and it says the account was assigned to PCM.  I would imagine Penfed holds the account.

 

The payment was accepted, and then the account closed.

 

I didn't quit paying when the account closed, but shortly after we had an natural disaster that shut our business down for several months and we stopped paying.

 

The lender doesn't care about the charge off and zero balance because they are a local company and they know a lot of people had accounts go bad after a natural disaster in the area.  They do care about the way PCM is reporting though... and they have to count the 5% of the balance as a monthly payment and that wipes out a lot of buying power.  I haven't had a missed payment in 4+ years on all of my active accounts, I just have this one sore thumb.

 

 

Edited January 20 by nferra2

[centex]

Assigned tells you little.  It is the language such as "our client" that will give the best idea about placement versus sale.  An assignment of rights is often a sale.  This contrasts with a placement.  

 

Does your lender understand that the account (based upon your representation of the matter) is outside of the window upon which successful litigation may be maintained? 

 

What constructive steps have been taken to dispute the amount in question and how it was calculated?  Was any of the discussion related to an offer to settle placed into writing? 

 

Charging off an account is an accounting term.  It does not relieve one of the liability.  Unfortunately, because of the mortgage shopping, you can bet that PCB is aware that you need to resolve it and knows they have you over the barrel. 

[cashnocredit]

Maybe it's just me but "Professional" and "Collections" in the same phrase sounds like an oxymoron.

 

Quote

 

Pentagon Federal Credit Union - Credit card

 They closed the account after I made a large payment, I think it was $14k, they said that was fraudulent.

 

 

That's a pretty large payment. Why did they claim it was fraudulent and not credit you? I'd have been like a dog with a bone had that happened to me. Even though it's past legal SOL might be of some value to others reading this thread.

[centex]

2 hours ago, cashnocredit said:

 

That's a pretty large payment. Why did they claim it was fraudulent and not credit you? I'd have been like a dog with a bone had that happened to me. Even though it's past legal SOL might be of some value to others reading this thread.

Wasn't FedPen one of the ones that acted like a whiny little biaatch for a number of years over petty little crap like this and also having a bunch of other open lines? 

 

 

[nferra2]

2 hours ago, cashnocredit said:

Maybe it's just me but "Professional" and "Collections" in the same phrase sounds like an oxymoron.

 

 

That's a pretty large payment. Why did they claim it was fraudulent and not credit you? I'd have been like a dog with a bone had that happened to me. Even though it's past legal SOL might be of some value to others reading this thread.

They did credit me, they just also closed the account.  

 

They don't care if it is SOL, they have to count the reported balance based on the FHA and USDA requirements, if there is not a payment in place 5% of the balance is used to calculate the monthly payment.  

 

I just read the letter again, it says it is assigned for recovery.  No mention if they own it or Penfed still owns it.  

 

If I do settle on a payment plan am I resetting the 7 year clock for reporting?  That would suck.  

 

I sent a DV letter to PCM Today, that is the first and only step I have taken in the debt recovery process.

[cashnocredit]

4 hours ago, nferra2 said:

They did credit me, they just also closed the account.  

 

Thanks for the clarification! I had assumed they didn't credit you.

[Second Chances]

4 hours ago, nferra2 said:

 

 

If I do settle on a payment plan am I resetting the 7 year clock for reporting?  That would suck.  

 

Payments do not reset the time period for reporting (which is based on DOFD), but, depending on your state, could remove the SOL protections you have now (it can reset the SOL clock).

[nferra2]

2 hours ago, Second Chances said:

Payments do not reset the time period for reporting (which is based on DOFD), but, depending on your state, could remove the SOL protections you have now (it can reset the SOL clock).

I really don't care about the SOL clock if this thing can still drop off in in 2023.  My credit going forward is more important than what this will cost me to settle.  It has been clean for 4.5 years. I really don't know what strategy to use to reach a settlement, they want to name call instead of working a deal.

3 hours ago, cashnocredit said:

Thanks for the clarification! I had assumed they didn't credit you.

I am not quite sure what I would have done if they didn't credit me way back when.

[centex]

15 hours ago, Second Chances said:

Payments do not reset the time period for reporting (which is based on DOFD), but, depending on your state, could remove the SOL protections you have now (it can reset the SOL clock).

They CAN however result in more recent reporting, which is a score killer in these scenarios.

[hdporter]

2 hours ago, centex said:

They CAN however result in more recent reporting, which is a score killer in these scenarios.

 

That's something that merits some attention.  There have been a couple of anecdotes over the years of debt being settled, as required by a mortgage underwriter, only for the tradeline update to adversely impact mortgage scores and rate qualification.  (Reportedly, FICO 8 and successor scores were revised to preclude this effect.)

 

I don't know how reliable these accounts are, but they seem consistent with what's been reported generally about the impact of old tradeline updates.  The suggested remedy wait until closing to settle the account, having arranged (with underwriter consent) to obtain a written agreement from the creditor that the account in question will be considered fully settled for an agreed payment and then withhold the payment from closing funds which is then remitted to the creditor directly by the closing agent.

 

In this manner, any adverse impact to mortgage scores occurs post-settlement.

[nferra2]

4 hours ago, centex said:

They CAN however result in more recent reporting, which is a score killer in these scenarios.

 

4 hours ago, hdporter said:

 

That's something that merits some attention.  There have been a couple of anecdotes over the years of debt being settled, as required by a mortgage underwriter, only for the tradeline update to adversely impact mortgage scores and rate qualification.  (Reportedly, FICO 8 and successor scores were revised to preclude this effect.)

 

I don't know how reliable these accounts are, but they seem consistent with what's been reported generally about the impact of old tradeline updates.  The suggested remedy wait until closing to settle the account, having arranged (with underwriter consent) to obtain a written agreement from the creditor that the account in question will be considered fully settled for an agreed payment and then withhold the payment from closing funds which is then remitted to the creditor directly by the closing agent.

 

In this manner, any adverse impact to mortgage scores occurs post-settlement.

They are updating this thing twice a month on Transunion, if all else fails I don't need my income on the mortgage, however they do take into account my debts in my state even if I am not on the loan, so either way the account has to be settled in some fashion.  On a payment plan is acceptable. 

[hdporter]

2 hours ago, nferra2 said:

 

They are updating this thing twice a month on Transunion, if all else fails I don't need my income on the mortgage, however they do take into account my debts in my state even if I am not on the loan, so either way the account has to be settled in some fashion.  On a payment plan is acceptable. 

 

If, as you observe, the tradeline reflects a recent date in the "date updated", then settlement in advance of closing will likely have little (if any) impact on your credit score.

[nferra2]

Well PBCM really sucks.  They will do a "payment plan" but they won't send us anything in writing, only post paid receipts... totally not a scam.

 

They did slip that Cascade capitol funding owns the account, that is not on any credit report.  I will see if they will deal.