CFPB or BBB re: LVNV

[NWintellectual]

I know that's a lot of acronyms in the title but bear with me. I have steadily improved my credit over the last 3 months from a 509 to 600 here on SW (EQ). The last unpaid collection I have on my report is an old CO from CreditOne that was sold to one of their shell companies, LVNV. The original card had a $200 CL, which ballooned to $640 by the time of charge-off (2009). Since LVNV took over the account, that $640 balance has grown steadily to almost $1200. Curious as to how a $200 card could now be transformed to an amount 6 times the CL, I sent LVNV a DV letter. I know this wasn't timely so they had no duty to respond, and they did not - just slapped a "dispute" flag onto their TL when they reported again and sent me a generic letter as to how I had 30 days to dispute the validity of the debt or else it would be considered valid. DV was received in early March.

So I tried another tactic: the 623 letter. Since LVNV has been reporting a past due balance (on an installment account no less) every month since they bought the account, I called them out for this unfair practice and demanded a response. The letter was received at their Las Vegas address on 24 March. The 30-day window has expired and I have not heard a word from them; complete radio silence.

The DOFD with the OC was ~10/2008 and I lived in California for the entire 4-year period immediately following that date, so SOL is expired as of 10/2012. (SOL in my current state of Washington is 6 years, but it is my understanding that once SOL expires in one state, you can't restart it by moving to another state.)

I want them to either (1) delete the account for incorrect reporting or (2) provide me an accurate accounting as to how the account balance could have grown exponentially in such a short time frame. What is the best method to follow up: file a complaint with the CFPB for incorrect credit reporting or BBB for shady business practices? Or should I let sleeping dogs lie and wait for it to go away on its own in 18 months? I do want to get a new car loan sometime in the Sept/Oct timeframe this year.

[RobertEG]

They have a requirement to conduct a reasonable investigation, and either verify the accuracy as reported, correct so as to overcome the inaccuracy, or delete if they can do neither.

They are not required to provide you documents supporting their verification.  If they reasonably conclude that they have support for the accuracy, they can verify.

A request for itemization of the debt is a legitimate part of a DV request, but if a DV is no longer timely, they have no requirement to respond.

If they verify in response to the dispute, they have formally stated that they have adequate basis.  The CFPB would be in no position to reach a finding that they do not have adeqate basis unless your complaint to them including a showing that they either did not conduct a reasonable investigation, or that their investigation did not support their finding. 

The issue of reporting a balance does not appear to be inaccurate.  The issue of whether their reporting as an installment account may be inaccurate.

Resolution of the issue of reporting as an installment would not require deletion of their entire collection, which is based on their collection on the debt.