To fix your problem, get a letter from your bank that says the payments were returned due to an issue with your billpay. Send that letter and a new complaint to the BBB. Your problem should be fixed within 30 days, and your credit history should be updated with all three credit bureaus within 60 days. If that does not work for you, let me know.
CFPB forwarded my complaint to the FTC, like they did yours, and the FTC never reached out to me in any way shape or form. The credit bureau Experian did not respond until after the problem was fixed, and I will go into detail as to how the problem was fixed. However, before going into how the problem was fixed, I will also mention that some rude man in customer service with the credit bureau told me that the credit bureua reports what a creditor tells them to report, and they do not verify with the creditor if what the creditor wants them to report can legally be reported or not.
Back to how the problem was fixed, it was through my BBB complaint. After submitting the complaint to them, I was immediately contacted by a corporate office for the credit card company. The credit card company is Credit One Bank. This is after I mailed two letters to what was supposed to be the corporate office. For over a month, I was told by customer service and collections that the letter was not received, and I was made to think that I could only speak with someone from customer service or collections. My account was in collections even though I never had a late payment, it was there because my account was charged off due to the returned payment. The corporate office tells me the account was charged off to protect me. They said they close accounts due to returned payments, but to guarantee protection for Credit One Bank and the customer, they have to charge off the account.
I was told all I needed to do was submit a letter from the bank that said the payment was not returned due to insufficient funds, and all changes made would be reversed. I mentioned that I had already written two letters that included a letter from my bank. I was finally told those letters were received but were under review. I was told the representatives who I spoke with from customer service and collections did not give me correct information, and that would be addresssed appropriately but that they could say no more due to company policy. I was also told that I could not receive an explanation why the account was charged off because that is confidential company information, but when I explained that reporting an account as charged off when there have been no payments more than 30 days late is a federal offense, I received the ridiculous explanation that the account had to be charged off to protect me.
That is where I am now, and I will update as I get confirmation that Credit One Bank and Merrick Bank cannot charge off accounts just because a payment was returned. The credit bureaus have no way of reporting an account as charged off without also reporting the account as late. Because of this, creditors cannot report an account as charged off to protect themselves and borrowers due to a returned payment unless a payment was at least more than 30 days late. The FCRA says that an account cannot be reported late unless a payment was more than 30 days late. Charge off is a late payment reporting status only.
