Charge off reporting

[Anonymous]

I'm sorry if this question has been asked, but I can't find a clear answer.

I filed for bankruptcy in May 2013.  I have a bank who is reporting me in charge off status after the filing of Chapter 7 BK.  They continue to report charge off status until the discharge date.  Then they cease all activity.  

They report me as having a zero balance.  But they are also reporting me as "Derogatory, Collection, Charge off".

I think they should have ceased reporting as of the filing of the bankruptcy, but they continued for 4 more months.  

Could any one please clarify for me?

How should this read?  

They are still reporting it as derogatory.  I contacted the bank after they verified with the credit bureaus and they told me that I should contact the Trustee and perhaps they can help me read and understand my credit report.

I also read the case Goodfellow vs. Discover Financial Services

It is my understanding that they are supposed to cease reporting after the notice of BK being filed, but here they continued until the discharge and they are not supposed to report anything aside from closed, paid 0 balance, current.  

Per Goodfellow vs. Discover Financial Services, negative reporting on a discharged debt is a violation of the permanent bankruptcy injunction of my discharge and is therefore in contempt of a Federal Court Order due to:

• Listing the account as “Derogatory” when the account should have been listed as “Closed (Transferred)”.

Any info is appreciated.  Thanks.  

[gdale6]

Prior to the month of BK filing the real history can be reported even post BK. The month of filing forward providing you got a valid discharge the account must show no payment history a 0 balance and notations of IIB. It it doesnt file a CFPB complaint on the creditor.

[Anonymous]

I have a had a couple of these myself reporting on the payment history. Either the creditor corrected it or just removed the whole TL. I have one in particular that just wont budge. Reported IIB and -0- balance however in payment history it shows CO's across the board after file date to discharge date.   Filed disputes, CFPB, getting nowhere.  Question is, where is there documentation to support that they cannot do this. I have read on other boards it is perfectly legal for them to report CO after the file date in the payment history and others state they cannot do this. Thanks for any help on this. 

[Horrace36]

Take a look at the FTC website for an advisory opinion to "Lovern". You'll find some support there.

[Anonymous]

Thank you. I have seen that but wasn't sure how much weight that holds since it is just an opinion.

[Horrace36]

I'm making the FTC/Lovern argument now, through the CFPB, under similar circumstances. Given the case law and opinions it should carry the day. That said, I'm finding that there is either wilful misconduct or gross ignorance on the part of the agents handling these matters. Through several occasions I have had to explain the difference between a Chapter 7 and a Chapter 13 bankruptcy. Also, Experian seems to have an operating manual that is simply wrong on the state of the law; on several occasions I have had the exact same language quoted to me (usually out of an office in Costa Rica). 

As an aside, there is currently a series of cases before Judge Drain in the Southern District of New York that alleges gross violation of reporting standards as well as violations of both the automatic stay and discharge order. The plaintiffs in each case are being represented by George F. Carpinello of Boies Schiller & Flexner LLP and Charles W. Juntikka of Charles Juntikka & Associates. Judge Drain refused several attempts by the banks to have the actions dismissed and in an excoriating rebuke said that if he believed there was misconduct, he would recommend the matter to the US Attorney's office, which it appears he has done. The defendants are Chase, Citibank, Bank of America and GE Capital Corp. http://www.law360.com/articles/642908/bofa-can-t-duck-credit-reporting-suit-over-canceled-debts 

Keep us posted on progress as will I. 

[0REDSOX7]

Not sure if this is the same or not, but, prior to filing, I had incurred a 30/60 late on several trade lines. GE is a few of them. The TL is right - zero balance, IIB, etc., but in the payment history is shows the 30/60 then after filing, continues to 90/120/CO.

Per several consumer finance attorneys I've spoken to, that is perfectly legal...

[Horrace36]

The bankruptcy code is key here in that the automatic stay prohibits creditors from doing anything to collect including reporting to the credit agencies. In my case, Synchrony held off on reporting until after discharge (filing to discharge in a chapter 13 is a several year period) and then posted for the entire period beginning with the filing date notwithstanding that the debt was at that point in time discharged. Sycnhrony believes that what they were prohibited from timely reporting they are now permitted to report in hindsight. The position holds no water.

[Horrace36]

UPDATE: Synchrony said that they will continue reporting a discharged debt as charged-off post filing; and they will do it for "as long as we like". Interesting. I may re-open my bankruptcy and seek damages and fees. Stay tuned.

[0REDSOX7]

Is the trade line showing a zero balance and IIB and the the CO in the payment history? If so, that is 100% legal. How do I know? I tried to go after GECRB for the same thing and several attorneys said it was not against the discharge order.