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Forcht Bank won't PFD!

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msensa
Contributor

Forcht Bank won't PFD!

This bank turned an overdrafted checking account into an installment loan when I didn't comply in their time frame.  It's reported as an unpaid installment loan for now 3 years.  I just found out this was on my credit recently...I've contacted them and offered to PFD--all the way to the bank officers--they're saying THEY CAN'T!!  It's only $125!!!  They will only update it as paid, but will not delete, they say they cannot!!  What do you do when this is their response?
 
My mtg broker wants me to pay an atty to send them a letter asking for the same thing...is it worth the $100 or so that will cost me?  My BK atty will do it, but they think it's futile as well.  This is really hurting my score and I'm so mad they won't cooperate! 
 
Any advice???
I'm a tree hugging, peace loving, non-patchouli wearing new kind of hippie chick trying to find a comfortable balance in this consumer-driven world. I just wish I didn't have to care about credit.
Message 1 of 14
13 REPLIES 13
Dawn
Established Contributor

Re: Forcht Bank won't PFD!

I sympathize with your plight and hope that you can get something worked out to your satisfaction.  From what I have read, the mortgage lenders generally require that these outstanding debts be paid, but it isn't usually an expectation that they be removed. 
 
Because we know the credit reporting industry is full of flaws it has become the consumer's expectation that negative data be removed from their reports even when it is accurate.  Although many report success with being persistent in requesting PFDs and GWs not all are successful. 
 
I'm sure that others will be along who will be able to give you advice about whether or not it is worth paying an attorney to try to get them to delete something they aren't required to delete.
 
 
 
Message 2 of 14
Dawn
Established Contributor

Re: Forcht Bank won't PFD!

Was this included in your bankruptcy and something that they should be handling differently? 
Message 3 of 14
msensa
Contributor

Re: Forcht Bank won't PFD!

Dawn,
 
Thanks for the response.  Unfortunately, this was a post-BK kick in the groin. 
 
Guess FHA is going to be a no-go.
I'm a tree hugging, peace loving, non-patchouli wearing new kind of hippie chick trying to find a comfortable balance in this consumer-driven world. I just wish I didn't have to care about credit.
Message 4 of 14
Dawn
Established Contributor

Re: Forcht Bank won't PFD!

I'm not sure that I would give up so easily.  Like I said, others report that persistence sometimes pays off. 
 
But ... if you can't get a delete, maybe there are other things you can do to get your scores up if your issues are primarily scoring.
 
Is the issue with the FHA loan just because the account is on the report?  Or is it a scoring issue that might be resolved by other approaches to increasing your scores?
Message 5 of 14
msensa
Contributor

Re: Forcht Bank won't PFD!

Because it's reporting as an unpaid installment...my broker doesn't think FHA will like it.  It reports monthly as unpaid!!
 
I've had some success with PFD, and gotten a couple things deleted that were erroneous.  It just burns me alive that this bank says "they can't" do it.  They should just have the guts to say "we won't" do it.
I'm a tree hugging, peace loving, non-patchouli wearing new kind of hippie chick trying to find a comfortable balance in this consumer-driven world. I just wish I didn't have to care about credit.
Message 6 of 14
Dawn
Established Contributor

Re: Forcht Bank won't PFD!



msensa wrote:
Because it's reporting as an unpaid installment...my broker doesn't think FHA will like it.  It reports monthly as unpaid!!
 
I've had some success with PFD, and gotten a couple things deleted that were erroneous.  It just burns me alive that this bank says "they can't" do it.  They should just have the guts to say "we won't" do it.


Well ... reporting as an unpaid installment sounds "inaccurate" to me.  You might ask others about how you might ask to have it coded differently so that it is more acceptable to FHA.  Then if you don't get it changed, you might have a case to have it deleted.
 
Edit:  The "inaccuracy" I see is reporting as an "installment" although I don't know yet what it should be.  However, I do believe you will have to pay it and at least have the status changed to paid in order to satisfy a mortgage lender.


Message Edited by Dawn on 03-27-2008 04:57 PM
Message 7 of 14
Anonymous
Not applicable

Re: Forcht Bank won't PFD!

For what it's worth, I agree with Dawn that it sounds like it is reporting inaccurately.  Since it is not an installment account, it should not be reporting as one.
 
In this case, you have some leverage.  Since the OC has proven to be unwilling to do a PFD or a GW deletion, the place to start is to dispute the account with the CRA as inaccurate.  Once you dispute, the CRA has 30 days to either verify the information with the OC and correct the reporting if appropriate, or, absent that verification, delete the account from your report entirely.
 
Unfortunately, disputing with the CRA often does not have the desired effect even when the account is truly inaccurate.  This dispute process will likely not be the solution to your problem, but is the only way to preserve your rights to legal action under the FCRA.  If the OC does not correct the account type when the CRA "investigates" your dispute, then you can follow up with the OC.  At that point, a strongly worded letter pointing out your unsuccessful attempt to dispute the account through the appropriate channels and their flagrant misrepresentation of the account type despite your honest efforts to get the tradeline reporting accurately may just get the desired result.
 
Whether it is worth $100 to have an attorney prepare a letter for you is a question only you can answer yourself.  Is a better chance at getting an FHA loan worth $100 to you?
 
Message 8 of 14
Dawn
Established Contributor

Re: Forcht Bank won't PFD!



cheddar wrote:
 
Whether it is worth $100 to have an attorney prepare a letter for you is a question only you can answer yourself.  Is a better chance at getting an FHA loan worth $100 to you?

And ... do you know for certain that NOT getting it deleted (assuming it gets paid and is updated as such) is hurting your chance at an FHA loan? 
 
If it were reported as an account type of "Deposit Related" (referencing overdrawn accounts) per the CDIA (Consumer Data Industry Association) manual, would FHA be more accepting (assuming it was paid?) Maybe Shane can clear this part up?
 
If so ... it might be worth it to ask the bank to change it from "installment" to "deposit related" and then paying it to clear your records for mortgage lenders.
 
As mentioned, disputing does not always get the results you want (and sometimes causes more problems) so I would proceed with caution before disputing it.

Message 9 of 14
ShanetheMortgageMan
Super Contributor

Re: Forcht Bank won't PFD!


msensa wrote:
This bank turned an overdrafted checking account into an installment loan when I didn't comply in their time frame.  It's reported as an unpaid installment loan for now 3 years.  I just found out this was on my credit recently...I've contacted them and offered to PFD--all the way to the bank officers--they're saying THEY CAN'T!!  It's only $125!!!  They will only update it as paid, but will not delete, they say they cannot!!  What do you do when this is their response?
 
My mtg broker wants me to pay an atty to send them a letter asking for the same thing...is it worth the $100 or so that will cost me?  My BK atty will do it, but they think it's futile as well.  This is really hurting my score and I'm so mad they won't cooperate! 
 
Any advice???

I don't think it would deny your chances at an FHA loan, worst case is that it would be required to be paid in order to get approved - meaning at closing of the loan you'd have to pay out the $125 to Forcht Bank.  Odds are since it's 3 years old, and such a small amount, it wouldn't have to be paid though.
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Message 10 of 14
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