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Established Member
Just4Jme
Posts: 21
Registered: ‎01-14-2008

HSBC Card went from Discharged due to BANKRUPTCY to CHARGE OFF...

Yeah this is wonderful...
 
Card was reporting Discharged due to Bankruptcy 6/2005.  I get a notice today that reports card was charge off 2004.
 
NICE credit score down 5 points....
 
AND NOW I MISSED THE HOME LOAN PROGRAM BECAUSE OF IT....MY MID SCORE NEEDED TO BE 660.  Now it's 656....
 
Lovely....
Established Contributor
granny031350
Posts: 951
Registered: ‎12-04-2007

Re: HSBC Card went from Discharged due to BANKRUPTCY to CHARGE OFF...

dispute
New Visitor
tbuzzard
Posts: 1
Registered: ‎03-10-2008

Re: HSBC Card went from Discharged due to BANKRUPTCY to CHARGE OFF...

Good luck on disputing these things.  I have been locked in a battle with several credit card companies for two years showing charge-offs of IIB items.  Though they aren't showing that way on Equifax and TransUnion, they are on Experian.  Disputing with Experian, they say they are accurate.  Contacting the companies, and they tell me that they did have to charge them off (legal requirement) so they are going to report them that way. 
 
Talked to my lawyer about lawsuit and he says it will cost me more money to sue than would be gained in the suit.
 
FTC has no hard rules on this that I can find, so on at least one credit report, they are going to show Charged-off after the bankruptcy was filed.
 
 
Established Contributor
FaircreditguyFL
Posts: 665
Registered: ‎03-31-2007

Re: HSBC Card went from Discharged due to BANKRUPTCY to CHARGE OFF...

[ Edited ]
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
WASHINGTON, D.C. 20580

Division of Financial Practices

Clarke W. Brinckerhoff
Attorney

202-326-3224

June 3, 1999

Peter L. McCorkell, Esq.
Senior Vice President and General Counsel
Fair, Isaac and Company Inc.
120 North Redwood Drive
San Rafael, California 94903

Dear Mr. McCorkell:

This responds to your letter concerning the application of the Fair Credit Reporting Act ("FCRA") to an account that is reported to a consumer reporting agency ("CRA") by a creditor, when the account is discharged in bankruptcy and charged off by the creditor, either before or after the discharge. You note that a staff opinion letter (Lovern, 4/24/98) stated that a credit bureau would violate Section 607(b) of the FCRA if it reported a discharged item as a chargeoff when it was in fact not charged off. You state that (contrary to a comment attributed by Mr. Lovern to a Fair Isaac source in his letter to us) your risk scores assign the same number of points to a bankrupt tradeline regardless of whether that account is also reported as charged off.

Specifically, you ask if we concur in your view that "nothing in the FCRA (a) prohibits a creditor from 'charging off' an account, whether before or after the filing of a bankruptcy; (b) prohibits a creditor from reporting to a CRA that an account which has been discharged in bankruptcy has also been charged off so long as the credit grantor has in fact charged off the account; or (c) or prohibits a CRA from reporting an account which has been discharged in bankruptcy as also having been charged off if the creditor has so reported the account to the CRA and the CRA has no reason to believe otherwise." We agree that the FCRA prohibits none of those practices in the circumstances you describe.

The opinions set forth in this informal staff letter are not binding on the Commission.

Sincerely yours,

Clarke W. Brinckerhoff

Message Edited by FaircreditguyFL on 03-19-2008 03:43 PM

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