Credit dispute help

Anonymous · ‎04-11-2018

Hi,

I had an auto loan through a credit union about 3 years ago and made every payment on time. A year and a half later, the car was totaled, and I got into a lease shortly after (December 2016). I spoke with an employee at the credit union regarding the payments since the GAP insurance was going to take over after my insurance paid their part. The employee informed me that since both insurance companies were going to pay off remaining balance, I double checked with employee for confirmation. A few short months later (maybe April 2016), I receive a call from another associate at the the credit union, informing me that the GAP hasn't went thru yet, and my account was overdue and became a serious delinquency, I told him about what the previous employee told me and he wasn't sure why they would tell me that. Well about a few weeks later, he called again saying that the GAP did go thru, but that I would have to pay the interest that accrued over the months when no payments were being made. I was working full time to pay for a lease and going to college fulltime in my last semester, I told him I can't make any promises that I could pay the few hundred dollars, but would do what I can. The account became a charge off in May I believe. I graduated that May, got a new job in June, paid off the remaining balance in August. Unfortunately this caused my credit to take a big dip, seeing that it became a serious delinquency and it was also charged off. Now it shows as a paid charge off on my credit report, and it's becoming increasingly difficult to be approved for auto loans (I only need a new car again to buy because my new job is much further than my previous, and I closing in on my lease mileage) and I need a cosign and money down when I previously didn't. I've tried disputing twice with fail, because they have notes saying I promised to pay the interest when I made no promises. Now I am disputing a third time, with a shorter explanation of what I have here, because I would never be in this position if I received the correction information in the beginning.

Should I be at fault, or should the credit union be at fault for providing the false information? This is really frustrating, I worked hard to get my degree to do the things I want, and I've paid every payment on the loan faithfully until getting confirmation which turned out to be false, causing my credit to dive and making it hard for me to get approved for loans.

How should I go through this if the dispute fails again?

Thanks

Adkins · ‎04-11-2018

@Anonymous wrote:
Hi,
I had an auto loan through a credit union about 3 years ago and made every payment on time. A year and a half later, the car was totaled, and I got into a lease shortly after (December 2016). I spoke with an employee at the credit union regarding the payments since the GAP insurance was going to take over after my insurance paid their part. The employee informed me that since both insurance companies were going to pay off remaining balance, I double checked with employee for confirmation. A few short months later (maybe April 2016), I receive a call from another associate at the the credit union, informing me that the GAP hasn't went thru yet, and my account was overdue and became a serious delinquency, I told him about what the previous employee told me and he wasn't sure why they would tell me that. Well about a few weeks later, he called again saying that the GAP did go thru, but that I would have to pay the interest that accrued over the months when no payments were being made. I was working full time to pay for a lease and going to college fulltime in my last semester, I told him I can't make any promises that I could pay the few hundred dollars, but would do what I can. The account became a charge off in May I believe. I graduated that May, got a new job in June, paid off the remaining balance in August. Unfortunately this caused my credit to take a big dip, seeing that it became a serious delinquency and it was also charged off. Now it shows as a paid charge off on my credit report, and it's becoming increasingly difficult to be approved for auto loans (I only need a new car again to buy because my new job is much further than my previous, and I closing in on my lease mileage) and I need a cosign and money down when I previously didn't. I've tried disputing twice with fail, because they have notes saying I promised to pay the interest when I made no promises. Now I am disputing a third time, with a shorter explanation of what I have here, because I would never be in this position if I received the correction information in the beginning.

Should I be at fault, or should the credit union be at fault for providing the false information? This is really frustrating, I worked hard to get my degree to do the things I want, and I've paid every payment on the loan faithfully until getting confirmation which turned out to be false, causing my credit to dive and making it hard for me to get approved for loans.

How should I go through this if the dispute fails again?

Thanks

What "notes" do they have? Have you seen them/asked for a copy? Was it a part of your contract with the credit union?

Last HP 08-07-2023

RobertEG · ‎04-11-2018

As I understand the post, the debt was eventually paid via insurance.

The 2015 settlement agreement reached between the CRAs and the state attorneys general of 31 states includes the following agreed procedures regarding medical debts that either paid in full by insurance or are being paid through insurance:

“The CRAs shall instruct Collection Furnishers on the use of the Metro 2

special comment codes of "BP" for debt identified as "paid by insurance" and

"AB" for debt identified as "being paid through insurance" and instruct

Collection Furnishers to remove or suppress medical accounts reported as

"paid by insurance" or "being paid through insurance" if such accounts were

in fact paid in full by the consumer's insurance carrier and were not the

obligation of the consumer.

“The CRAs shall implement a process designed to effectively remove or

suppress known medical collections furnished by Collection Furnishers from

files within the CRAs' respective credit reporting databases when such debt is

reported either as having been paid in full by insurance or as being paid

through insurance.”

Anonymous · ‎04-16-2018

@Adkins wrote:
@Anonymous wrote:
Hi,
I had an auto loan through a credit union about 3 years ago and made every payment on time. A year and a half later, the car was totaled, and I got into a lease shortly after (December 2016). I spoke with an employee at the credit union regarding the payments since the GAP insurance was going to take over after my insurance paid their part. The employee informed me that since both insurance companies were going to pay off remaining balance, I double checked with employee for confirmation. A few short months later (maybe April 2016), I receive a call from another associate at the the credit union, informing me that the GAP hasn't went thru yet, and my account was overdue and became a serious delinquency, I told him about what the previous employee told me and he wasn't sure why they would tell me that. Well about a few weeks later, he called again saying that the GAP did go thru, but that I would have to pay the interest that accrued over the months when no payments were being made. I was working full time to pay for a lease and going to college fulltime in my last semester, I told him I can't make any promises that I could pay the few hundred dollars, but would do what I can. The account became a charge off in May I believe. I graduated that May, got a new job in June, paid off the remaining balance in August. Unfortunately this caused my credit to take a big dip, seeing that it became a serious delinquency and it was also charged off. Now it shows as a paid charge off on my credit report, and it's becoming increasingly difficult to be approved for auto loans (I only need a new car again to buy because my new job is much further than my previous, and I closing in on my lease mileage) and I need a cosign and money down when I previously didn't. I've tried disputing twice with fail, because they have notes saying I promised to pay the interest when I made no promises. Now I am disputing a third time, with a shorter explanation of what I have here, because I would never be in this position if I received the correction information in the beginning.

Should I be at fault, or should the credit union be at fault for providing the false information? This is really frustrating, I worked hard to get my degree to do the things I want, and I've paid every payment on the loan faithfully until getting confirmation which turned out to be false, causing my credit to dive and making it hard for me to get approved for loans.

How should I go through this if the dispute fails again?

Thanks
What "notes" do they have? Have you seen them/asked for a copy? Was it a part of your contract with the credit union?

They said they had "notes" on me promising to pay the interest that built up during the time it took for the insurance to pay the loan off. I never made such promises.

Anonymous · ‎04-16-2018

@RobertEG wrote:
As I understand the post, the debt was eventually paid via insurance.
The 2015 settlement agreement reached between the CRAs and the state attorneys general of 31 states includes the following agreed procedures regarding medical debts that either paid in full by insurance or are being paid through insurance:

“The CRAs shall instruct Collection Furnishers on the use of the Metro 2
special comment codes of "BP" for debt identified as "paid by insurance" and
"AB" for debt identified as "being paid through insurance" and instruct
Collection Furnishers to remove or suppress medical accounts reported as
"paid by insurance" or "being paid through insurance" if such accounts were
in fact paid in full by the consumer's insurance carrier and were not the
obligation of the consumer.

“The CRAs shall implement a process designed to effectively remove or
suppress known medical collections furnished by Collection Furnishers from
files within the CRAs' respective credit reporting databases when such debt is
reported either as having been paid in full by insurance or as being paid
through insurance.”

So what you're saying is that I shouldn't be held responsible since the insurance was eventually going to pay off the loan?

Kree · ‎04-16-2018

RobertEG is the best source for quoting rules and regulations. Unfortunately he sometimes skims threads, and in cases such as this his comments do not apply.

What he was speaking to was specificially in regards to medical insurance related late payments. You are dealing with a car insurance related payment. (Unless I am wrong. Which is possible, in which case he will most likely come back and clarify that it covers all insurance issues (I don't think it does.))