Direct Buy Settlement/Beta finance update:deleted!!!

[FRNM]

http://www.ag.ny.gov/press-release/ag-schneiderman-reaches-500000-settlement-directbuy-reimburse-new...

In December of 2007 I foolishly signed up for a Direct Buy membership. Long story short...I tried to cancel the contract the very next day and  I never purchased anything from Direct Buy. The prices were not competitive...showroom opened at inconvinient times...high "handling "charges etc. 

I went through some rough financial times and never paid the membership off. Of course it went to collections and I spent most of 2009 fighting with NCO collections and even filed a complaint with the FTC. Finally, NCO bounced the account back to Beta Finance and that's where things were left. I've been working on our credit and I was going to buy a house last  year. I knew I would have to settle with Direct Buy to close and I made an attempt to do so though it was going to be a bitter pill to swallow since I never used the membership. The person I interacted with at the location where I purchased the origianal membership offered to generously settle with me for what would have been the total cost of the membership minus finance and late charges. 

Anyway, I didn't end up settling or buying a house in 2012 because it made me sick to think I was going to pay off the entire membership and I had never used it. Now I find out that the NYS attorney general has reached a settlement and I have filed for restitution from Direct Buy. I also filed a dispute with Transunion (only report this is showing up on) and I sent a letter to the Direct Buy club location and Beta Fianance (also goes by name Alice Kashino/Beta Finance collections in Crowne Point, IN)  in hopes of having this item removed from my credit. 

Transunion states that the dispute should be resolve by 2/22/13. Direct Buy of Westchester sent me a nasty response letter stating that they aren't giving any refunds and to file a claim with the AG (I expected that) and I haven't heard anything from Beta Fianance yet...though I got the receipt and know they received my letter.

Is anyone else out there going through this or has gone through this in their state? I know that other states have reached settlement agreements with Direct Buy but as much as I Google I have only seen 2 people who have won against Direct Buy.

I'm just in a holding pattern and wonder if this is going to work out in myh favor. I really want this off my Transunion report....my score is 651 and not budging because of this. The good news is that My Fico is 716 and I saw my Equifax score last year while applying for a pre-qualify...748 (Direct Buy is only on Transunion).

Anyway, if anyone can be of assistance thank you in advance and hopefully someone from NYS will see this and file a claim before the April 1, 2013 deadline. 

http://www.ag.ny.gov/press-release/ag-schneiderman-reaches-500000-settlement-directbuy-reimburse-new...

[RobertEG]

It seems to me that you have a legal issue as to whether you have violalted any terms of the contract.

Not knowing the language or terms, it is impossible to say whether non-use of the membership voided any obligation for fees.

The dispute processes under the FCRA dont provide for ultimate hearing on the facts of a contested matter, or a party authorized to reach a binding decision. 

They require the furnisher to conduct a reasonable investigation, and either state that they verify the accuracy of what has been reported, correct the reporting so as to make it accurate, or, if they fail to do either, delete the reporting until such time as they provide verification of its accuracy.

If they verify, you will have to get the issue before a party authorized to compel both sides to produce relevance evidence and reach a binding determination.

If, as part of any subsequent legal proceeding, it is shown that they verified without sufficient documenation, or that their documentation would reasonably lead to a conclusion of inaccuracy, you then have a separate cause of action for willful violation of the FCRA dispute process.

If the dispute process does not resolve the matter to your satisfaction, the next step would be to consider civil action.

[FRNM]

Thanks for responding. I failed to mention that the AG criteria for restitution are that you purchased less than $5k in goods from DB and you joined after January 1, 2007. I didn't buy anything from DB and I signed up December 2007.

I never filed a dispute with any cra prior to reading the AG statement. I only filed a complaint with the FTC against NCO for harrassing phonecalls and refusing to provide proof of the debt.

I figured that maybe with the AG statement I'd have a chance at getting this off. I included a copy when I wrote the letters.

[FRNM]

I wanted to update: I won!!! I received the results of my dispute from Transunion and the account from Beta Finance has been deleted!!!! 

I am doing the happy dance!  I hope this helps someone else. I'm going to wait a few days and pull my Transunion score. I hope to be close to 700 or over since that was the only negative on my credit.  

[Shogun]

Happy Dance!

[SouthernGirl819]

EQ 487 EP 527 TUHi. I am in the same boat as you were with DB. Congrats for having it deleted! My debt is being held with a company called NFG. But DB is reporting on my TU report and it showing a past due balance of $3069. It does not show as a CO. How did you handle your dispute with TU? Thanks for any info! I mean Beta Finance is reporting, not DB. Thanks!