Mercedes Benz, Macdowell Assoc and illegal re-aging

[Einbry]

Hi everyone! Long time reader here and I'm hoping you guys can give me guidance. My apologies in advance for the novel below.

Sept 2014 MB financial called a loan in on me for suspicions that I exported an SUV to China. I was given 24 hrs to pay $45k loan in full. I asked for 30 days and they declined opting to charge it off on my credit. I never had a late payment in 13 mos. therefore they couldn't report any late pays etc. It was reported as charged off bad debt.

Fastforward year to Sept. 2015 and I recvd a letter from Macdowell Assoc stating they represent MB. I called to see what type of arrangements we could make on the debt. I was advised that we could establish a payment plan and they would send docs to me via USPS. They one page paper I recvd had attorney fees , interest etc..adding an addtional 11k to debt. I had an atty friend review it and call them to negotiate. They declined an offer of $25k.

JAN 2016: I recvd mailers from BK attys stating that a lawsuit had been filed against me. I immediately called the courts to verify and was told "yes, but It's not out for service".

The following day I called Macdowell to discuss the suit. We discussed paying $2500 down payment and monthly payment plan. The following day I went to their office and receptionists asked where my check that she needed to show the attorney before giving me the contract. Once again I was presented with a 1 pager. However, this time it stated CONSENT TO JUDGMENT!! I told her their was no way I was signing this and I needed to speak with her superior. She left the paper on the counter..I snapped a pic of it and sent to an atty friend. He advised me to tell them: either draw up a payment plan contract or we will just go to court, because I am not consenting to a judgement and having that on my credit along with CO. Manager came out and advised me I could either sign or go to court. I told him :see you in court and give me my check back. He told me the lawyer had the check and it would be applied to balance owed. I was livid but didn't argue and walked out.

March 7th 2016 I recvd credit alerts that a new information was being reported to an account. Low and behold these scumbags have updated DLA to jan 2016. My TU dropped 57pts. EQ dropped 20. Exper has yet to change.Please advise on the following:

1. Can a charged off acct also go on credit as a judgement too?? How can they mar your credit TWICE for the same acct.

2. If  I did not sign any type of paperwork etc with Macdowell...how could they keep my check and then report it as new payment??

They practically stole / strong armed it from me.

3. Do I have a suit against them for re-aging and theft of my check?

TU report:

Current Balance$48,776

Original Balance$51,423

Monthly Payment$1,083

Last Payment 01/28/2016

StatusCollection / Charge-OffTerm60 monthsLoan TypeAuto

LoanOpened11/29/2013

Reported09/30/2014

RemarksCharged off as bad debt|Profit and loss write-off

How can they update payment on a chaged off account , which caused my score to drop.

EQUIFAX REPORT READS:

Date Opened: 11/29/2013  

Balance: $48,776  

Date Reported: 02/29/2016 

Amount Past Due: $48,776 

Date of Last Payment: 01/2016 

Actual Payment Amount: $2,500  

Scheduled Payment Amount: $1,083

  Date of Last Activity: N/A

Date Major Delinquency First Reported: 09/2014 

Months Reviewed: 13 

Creditor Classification:  

Activity Designator: N/A 

Charge Off Amount: $45,516  

Deferred Payment Start Date:  

Balloon Payment Amount:  

Balloon Payment Date:  

Date Closed:  

Type of Loan: Auto 

Date of First Delinquency: 09/2014 

Comments:

Charged off account
Fixed rate  

THANK YOU TO ALL FOR YOUR TIME!

[RobertEG]

Taking of a charge-off is an accounting measure that moves the debt in their books from being a receivable asset to a bad debt.

It does not relieve the consumer of the continued debt, or terminate other reporting of the delinquency on the debt.

They can report the CO plus monthly delnquencies and/or a judgment should they later file action and obtain a judgment from the court.

As for taking of your check when you requested its return in view of your non-accptance of their contract offer, the manner in which they took possession as a condition to your seeng the contract that you then refused to sign is, in my opinion, clear basis for return of your check upon your lack of acceptance of the contract.  While they may assert that you paid, you had no real meeting of the minds that formed the basis for a legitimate contract.

Howver,that position is something you would need to litigate.  I would consult your attorney for possible civil action.

As for illegal re-aging, no, there is no violation.

Illegal re-aging of credit reporting is the change of the reported DOFD in order to extend the exclusion period for their reported collection.

DOLA has nothng to do with credit report exclusion, and extends nothng.  DOLA is simply the date of whatever last activity occured, and is meaningless.

They have 9/2014, which martches the date you provided, which results in the same credit report exclusion date as no later than 7 years plus 180 days from the reported DOFD.

As an aside, I would also advise that you look into the legitimacy of their taking of an immediate charge-off of the debt at time they first demanded payment.

Federal banking regs governing the criterion for taking of a charge off usually require extended period or default before they csn take that action.

I question their immediate taking of a CO.

For reference, I suggest you revew Fed Reg, Vol. 65, No. 113, June 12, 2000 for review of the latest charge-off regs.

[Einbry]

Thk you for your time and detailed reply. Big thanks to the legal references for CO etc. Maybe I have a case against them.
Any ideas for me in regards to them updating the payment and causing my credit to drop 20-57 points ? I was slowly climbing back up in scores .. Pre CO I was a 740 .. After CO 570... Up to a 644 and now busted down to 580 !! There has to be something I can do to fight that.

[RobertEG]

You can file a dispute of the accuracy of any information they have reported to a CRA.

That would include, for example, their reporting of a payment when you contest their taking of your check.

They are very likely to simply verify the accuracy of their reporting, which will teminate the dispute, but iif you plan on bringing any civil action against them in the future, you must first file a dispute and provide them the opportunity to investigate your assetion of inaccuracy and either verify or correct their reporting.

The importance of filing a dispute,even though it will likely not be decided in your favor, is that a consumer cannot bring their own private civil action against a credior that asserts reportng of inaccurate information, but a consumer can bring civil action for lack of reasonable investigation of a dispute.

Thus, a disptue is needed as a foundation for any subsequent bringing of civil action should you reach that point.

[RobertEG]

Was their authority to call the loan due and to immediately do a charge-off somehow related to a finding of an actual violation of export control regulations?

The point being that filing of a dispute challenging the charge-off might be based on some specific and unusual reg or statute that applies to an obnormal situation.....

[Einbry]

When I applied for the long I had to sign a document stating that the car would not be exported or sold within a two year time period. I was not allowed to keep a copy of this document. Based upon your comments last night I perused the letters sent to me from MBF. The first letter came July 2015 stated they wanted to inspect the vehicle because they had information leading them to believe the car had been exported I was given 10 days to produce the vehicle. August 2015 I received another letter stating that I failed to produce the vehicle and I have until September 21 to pay the loan in full or they were pursue any and all legal remedies applicable. I phoned them on September 20 requesting 30 days and as a good faith gesture I would wire $10,000 immediately. They declined and on September 24 the loan was charged off and on my credit as a charge off bad debt. It really shocked me that they could report it as a charge off bad debt because I had zero late pays long was current Etc.. They were smart and did not try to add late payments or repossession status.

[RobertEG]

Then they are apparently basing the ability to hold the debt as chargeable to profit and loss on an asserted default of terms of the loan relating to prohibitions  rather than an extended period of delinquency in its repayment, as is the normal basis for an account becoming "uncollectible."

My point is whether their charge-off might be permissible for reasons other than extended periods of delquency, such as the normal 120-day period that normally is the standard for loan charge-offs.  You might wish to consult an accountant before disputing, as you appear to have a somewhat unique set of circumstances.....

[Einbry]

Should I see a consumer protection Atty ? Yes indeed this is not your run of the mill case .
Thx for all of your input .
How would you present this to an attorney ? What would your goal be ?

[Anonymous]

Wow, sounds terrible. Sorry you're going through this. Obviously it's too late now, but you could've put a Stop-payment on the check which would've prevented them from cashing. Letting your back know they took it without your consent. Is your friend able to represent you in the case? You could always send a dispute to TU and Equifax and see what happens. Messy. :-/

[Anonymous]

**Bank