Synchrony Bank - BK Violations?

[casmith1980]

Has anyone else read this article:

http://seekingalpha.com/article/2681635-update-justice-department-investigating-synchrony-financial-...

Looking at my credit reports, I did notice that Synchrony Bank changed all my payment status's to "Charged Off" 12/20/14 which was 15 days after I filed bankruptcy.  They've updated the balance to $0/Included in Bankruptcy but I thought the payment history was to reflect nothing. Is this a violation or am I mistaken? 

(my 341 meeting is 1/9/15 with an anticipated discharge date of 3/10/15)

Thanks!

[gdale6]

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Its legal to retain payment history up to the month of BK filing. No payment history can be recorded post BK

[casmith1980]

So reporting charge off of my accounts after my filing date of 12/5/14 would be a violation?  I guess I'll wait until after my discharge date to start sending letters. 

[Anonymous]

I have been dealing with them for months on three different accounts. Good Luck. Next step CFPB. Thanks for that article. Very interesting.  

[casmith1980]

I might just start the letter writing campaign now rather than waiting since they have conceeded to discharging all debts. 

I just received an alert that NFCU updated my balance to $0 IIB which gave me 28 points . (Better than nothing)

[TRC_WA]

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@casmith1980 wrote:

I just received an alert that NFCU updated my balance to $0 IIB which gave me 28 points . (Better than nothing)

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Be aware they you will be blacklisted from ever getting back with NFCU until you voluntarily pay back the debt... pretty common with CU's.

[casmith1980]

Fully aware - but there's nothing I can do about it at this moment. Maybe one day I'll come into a huge sum of money and I'll pay them off out of guilt

[jim44]

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@gdale6 wrote:

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Its legal to retain payment history up to the month of BK filing. No payment history can be recorded post BK

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I thought any payment history prior to BK discharge can be recorded on your history report. IE: I was up to date on all debts except for two mortgages prior to filing. I was advised by my attorney to stop making payments. Post discharge there were several CC banks that reported 30 and 60 day lates on my CR as it was 60 days from filing to discharge. Also my HELOC was charged off 1 month prior to filing and that charge off was still on my CR 2 years after discharge. I went through loan modification with my first mortgage and these lates (7) are still being reported as missed payments on EQ.  All IIBK are reporting 0 balances. I've read where these reportings were all legal.

[0REDSOX7]

I am going to chime in here - because I had the same issue post BK discharge with GE (now Synchrony).  So much so that I even met with two consumer finance attorneys to get their input - and, unfortunately, there is no legal case against them here.  Let me state why.

More than likely, for these credit accounts, your account has a 30/60/90/120 status prior to the charge-off.  So, say you retained your BK attorney, he advised you not to pay anymore - then two months later you filed.  You would have a 30 and a 60 day late on your CR.  The finance laws allow them to continue the reporting heirarchy (ie, 90/120 days late) even though you filed your BK and allow them retain.  Legally, after a 120 day late, they MUST report the account as a Charge-Off - and thus, report it on your credit report.

It would only be a violation if the TL status was Charged Off instead of IIB and a $0 balance - which you state they did not.  Showing a CO status in the payment history is not a violation of the FCRA and therefor would be futile to get them to change it because their reporting is correct.

Keep in mind, most creditors will just delete payment history when you file BK, but they are not required to and if they do continue, it must be accurate, which, in this case, it is.