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Lasardo
Established Contributor

Contact a lawyer?

I have been rebuilding my credit since dec/2011.
I started at 554.
27 negative items, several inquiry's and absolutely no credit other than an installment loan from 2008.
I managed to remove 25/27 of the negatives, the last 2 will come off at the end of this month. I also removed 6 inquiry's.
This has been a lot if work.
My credit score WAS just enough to qualify (649, you need to be 640) then when my bank got bought out by another bank (BMO bank) what is called a "credit builder" account was closed out thus closing my installment loan thus dropping my score 34 points. I know this because I pulled my reports on October 03,2012 and my score was 649 then I pulled it again just because on October 16,2012 and the account was closed/current, absolutely no other changes. I happened to print out the before and after.
The thing is I knew the buyout had occurred a while ago and was becoming finalized after October 6,2012. My Credit Builder was listed as the new bank, BMO bank, the only change is it was closed after the transition. They offer a credit builder also so it's not that BMO doesn't offer it.
I have gone rounds with the branch and every supervisor at the call center and I am told they would be more than happy to write a letter stating they have an open account that is current for a Mortgage loan. Still doesn't qualify me..what use is a letter to my score.??
The best part, I was told it will likely not be corrected until after February!
I would love all the advise I can get on this situation, maybe I'll get lucky and someone reading this will be or know a lawyer.. Right huh? How could I get that lucky?
Thanks in advance..
CS 728- 01/13 from 554-12/11
Goal: 800
Message 1 of 7
6 REPLIES 6
KnewBee
New Contributor

Re: Contact a lawyer?

IMHO I dont think a lawyer would generally want to get involved in a case like this, not enough money in it and the bank probably has in the terms and conditions that they can close account at anytime (I could easily be wrong on this tough so dont take my word for it, keep checking) but if they are willing to give you a letter stating the account is still open I would try disputing with the CRAs through the mail and sending a copy of the letter with your dispute stating that account status is incorrect it should be listed as open instead of closed per the letter. If the CRAs change it your mortgage lender should be able to do a rapid rescore to update right away once changed. Hope this helps

Starting Scores: 9/19/2012 EQ 613 / TU 526 / EX 543
Current Scores: EQ 716 TU 724 EX 724 Goal Scores: 700
Message 2 of 7
GregB
Valued Contributor

Re: Contact a lawyer?

Any creditor must follow the agreement for that loan. You know that it says they can close the loan anytime. You should probably think of this as not really qualifying for a mortgage yet since the only positive account was one loan.

 

You seem to be saying that they did open a replacement loan for you. If so, that will help your credit after a short time.

 

You need some additional accounts on your reports. You aren't really "there" yet.

 

 

Message 3 of 7
annielorie
Valued Contributor

Re: Contact a lawyer?

Id go the CRA route and get cras to update as open then it will show two accts loans open and being paid. However Id also try 2 cc secured or otherwise now and pay for 6 months to bring score up and over the fateful 640.  you will take a ding for the two inq. and AAOA but in 6 months it should boost you considerably. If u can wait it out six more months Id do so. Who wants to move in the winter anyway hope that helps.


Starting Score: 0
Current Score: TR??FICOEQ ?? FICO
Goal Score: 760

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Message 4 of 7
RobertEG
Legendary Contributor

Re: Contact a lawyer?

If you dispute through the CRA, it will go like this....

They will forward a copy to the creditor using their e-Oscar process, without any supporting documentation.  The credtior will receive a two-digit dispute code, and either change their reporting or simply verify that what is currently reported is accurate.

They need not provide any documentation to the CRA, and in fact, the CRA e-Oscar process essentially precludes that.

The CRA wont be a substantive player in the dispute.  In fact, they will be a detriment.  They will conclude their reinvestigation based upon whatever the creditor reports back through the automated e-Ocar resolution form.... a checklist.

 

If you wish to dispute the accuracy of the current account status, I suggest sending the creditor a direct dispute under FCRA 623(a)(8) and leave the CRA out of the process.

That will ensure that all of your documentation is received by the creditor, which wont happen if you use the CRA.  It may not change the resolution of the dispute, but it will at least get your documentation before the creditor.

Message 5 of 7
Lasardo
Established Contributor

Re: Contact a lawyer?

The main problem is this.. 

I have no idea who to send the dispute to. 

I understand I need to Send the dispute to the creditor directly,but which Department?? The bank has been completely unhelpful and any "front line" CSR suggests the collection department since they mainly deal with reporting to the CB's but the collection agency's state that they have no idea what to do.. The agents I spoke to told me that my problem I'll not likely be resolved until after February.  If you pull my account online or if the bank does it is reported "current/open"and on the report it states "closed/current". I seriously have about 5 days to have this fixed.   Any ideas are helpful. 

Or if anyone has any contact information even more helpful. 

CS 728- 01/13 from 554-12/11
Goal: 800
Message 6 of 7
RobertEG
Legendary Contributor

Re: Contact a lawyer?

The rules implementing the direct dispute process, found at 16 CFR 660.4, anticipated the issue of what constitutes a proper mailing address for direct disputes.

 

"16 CFR 660.4(c)  Direct Dispute Address.  A furnisher is required to investigate a direct dispute only if a consumer submits a direct dispute to the furnisher at:

(1) The address of a furnisher provided by a furnisher and set forth on a consumer report relating to the consumer;

(2) An address clearly and conspicuously specified by teh furnisher for submitting direct disputes that is provided to the consumer in writing or electronically (if the consumer has agreed to the electronic delivery of information from the furnisher); or

(3) Any business address of the furnisher if the furnisher has not specified and provided an address for submitting direct disputes under paragraph (c) (1) or (2) of this section."

 

I presume they have not provided an address to which direct disputes are to be sent, so the rule says that you should send it to the address they reported to the CRA, and if no addresss has been provided to the CRA, you can send it to any legitimate business address of the furnisher.  You need not identify a particular dept or person if they have not specified in advance.

 

Message 7 of 7
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