UGH!!!! Creditors Changing Account Status

[Anonymous]

I'm so mad! I just woke up to a FICO alert that Credit One changed my account from IIB to bad debt/sent for collection! I had already disputed to get it as IIB. This has made my already sufferring credit score drop 20 points! Since I have already disputed to get it to IIB and now they've changed it again, is this one of those instances I should sue for willful violation?

[Taoron]

I would definitely contact your lawyer and tell them what happened.  I would also call the CRA immediately and tell them that this is disregarding a federal judge's decision to grant you Chapter 7 discharge.

[Anonymous]

My discharge is actually not quite here yet. It's coming up soon... should I wait for that before going to the CRA/my lawyer? I just don't want to drag this out forever; they've violated the automatic stay twice, claiming both times my records had no notes of my bankruptcy despite having called them the second I had my case number.

[TRC_WA]

I think I've read somewhere that if the account is charged off/sold PRIOR to your discharge (as is the case here?) that they can legally report it as such.

You aren't discharged yet... and they certainly don't have to report IIB until you are.

[Anonymous]

I thought they couldn't report derogatory history once you filed, and up until my file date (12/24), it was reporting as current.

My other 2 CRs still show it as $0/IIB with payment history showing no late payments. No idea why they've decided to only report collection to 1 of the 3. Their violations of the automatic stay were both threats that if I didn't pay instead of including it on my petition, they would send me to collections. (One is an email so I have it in writing.)

[Taoron]

Hmm, I know that once you receive a discharge it will be IIB.   So I'd wait until discharge before you do anything legally since the judge hasn't granted you that protection yet.  You are in proceedings for it but .. yeah..  Just send CRA discharge paper when you get it if it's still listed like that. 

[DaveInAZ]

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@Anonymous wrote:

I thought they couldn't report derogatory history once you filed, and up until my file date (12/24), it was reporting as current.

My other 2 CRs still show it as $0/IIB with payment history showing no late payments. No idea why they've decided to only report collection to 1 of the 3. Their violations of the automatic stay were both threats that if I didn't pay instead of including it on my petition, they would send me to collections. (One is an email so I have it in writing.)

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Correct, if you were late prior to filing they can report that, but once you file all your debt is protected by an automatic stay from a US federal court and they can't make any attempt to collect the debt - and reporting it late & especially reporting it "placed for collection" is an attempt to collect. If you really wanted to pursue it your attorney could probably collect a fine fom them for you. But since you're close to discharge I would wait & see if they fix once they receive your discharge, if not, then go get 'em. Credit One is owned by a large nationwide collection company and knows all too well how to screw with someone's CR. Since you already disputed it once I think they're just screwing with you, and they know once they receive your discharge they have to fix that ASAP. 

[0REDSOX7]

Just to add on to what DaveInAZ said - if you were 30 days late prior to filing - then they can continue the reporting caedence (30/60/90/120/Charge Off) even after you filed and were discharged.  This is perfectly legal so long as teh account status is IIB and balance owed is zero.