GE capital is clearly wrong but I need supporting statues

[wHiTeSoL]

I've been going back and forth with GE capital to get some things cleared up on their TL. It went to was told to a CA which i paid and GWed off. It only showed up on EX and showed as a 1 month CO with still a balance due. This is the exact letter minus the thank you for contacting us formalities.

"We have reviewed you account record and the information you provided and determind the account history is being accurately reported to the major credit reporting agencies. 

Each credit reporting agency is different in how they display information. They all receive the exact same information from GECRB, but may have different ways in how they display the dates provided to them (open date, closed date, report balance, paid date, status date, etc) Due to non-payment on the account, the balance of $1,143.00 was charged off as a loss on July 5th, 2009, and later sold to Encore Capital.

As for the charge-off of the acocunt and the balance showing on your credit reports, even though we have charged off the account, the balance is still valid and eligible for collection. Therefore, the balance of $1,143.00 showing on your credit reports is being reported accurately as it is the balance that was charged off. The information being reported on the account is frozen at the time it is charged off."

Any help would be appreciated, I know I should mention that since they sold the debt they should report a $0 balance, but cant find any statute to back it up. 

[DaBears]

PM me I have a contact at GE which is very nice and very good at what she does. 

[wHiTeSoL]

Update: GE is a bunch of bullies. Now everyone is ignoring my calls, and letters. I submitted a complaint to the CFPB and so far after a week yielded no response. I cant believe such a big company like that leaves themselves open for a lawsuit by reporting blatantly false information against overwhelming evidence and refuses to correct it.

[guiness56]

They can show the charged off amount just not a current balance.  If they are and they sold the debt they are clearly wrong.  By showing a balance they are stating they retain collection authority, and though the balance is collectable, it is not by them.

Once an account is sold it must show a 0 balance.

Does the TL say it was sold/transferred?

[wHiTeSoL]

the paper report from EX states $831 charged off and $331 written off and sold to encore capital with a current balance due of $1143. In the last letter i received it specificly stated it was sold AND the balance is still valid and collectible. I feel like this is misrepresenting the status of a debt but they seem to disagree.

[guiness56]

The balance is still collectible, just not by them.  They lost that right when they sold the debt.

They are misrepresenting the status of the debt whether they disagree or not.

Start filing complaints.

[wHiTeSoL]

I am currently pending one with the CFPB. Any others you would suggest? BBB?

[RobertEG]

+1.  Their logic is directly contrary to statute.

They state that a charge-off does not affect the consumer's continued obligation for the debt, and thus is not basis in and of itself to alter the current debt balance they are reporting.  That statement alone is correct, but their statement that the debt they must report is thereafter "frozen" is hogwash.

What is "frozen" is only the amount they charged-off, which is retained in a separate code.  If the current debt balance changes or is paid, that is the current balance, which by definition is a snapshot of its current amount, and thus is never "frozen."

The reporting of a CO is a simple statement of a business decision they made at a prior point in time.

The subsequent status of the debt must still be accurately updated. 

FCRA 623(a)(2) requires anyone who has furnished information to a CRA to promptly update that reporting so as to maintain its current accuracy.

The current balance would have required update in two possible ways.

If the OC sold the debt to the debt collector, they must have immediately reported a current debt balanced owed to them of $0.

Thus, payment or non-payment to the debt collector would become irrelevant to their reporting, as the reported balance would already be $0.

However, if the OC still owned the debt at the time you paid the debt collector, then they would be required, upon notification from the debt collector, to promptly update the debt balance to $0.

My suggestion.

If your prior letter was only an informal request to update, then I would now send them a direct dispute under FCRA 623(a)(8), requiring them to respond within 30'ish days, confirming that they have conducted a reasonable investigation of the accuracy, and verify its correctness, or else update the information.

If they provide formal verification of accuracy, again stating the current debt balance becomes "frozen"once they do a CO, I would immediately file a formal complaint with the FTC/CFPB, asserting violation of FCRA 623(a)(2). 

Their verification of your formal dispute could also be asserted to have violated their requirement under FCRA 623(a)(8) to have conducted a reasonable investigation, and accurately report the results of that investigation.  They would have rested only on their incorrect interpretation that currrent balance becomes frozen without responding to the issue of complance with the update requirements of section 623(a)(2).

[wHiTeSoL]

My CFPB complaint generated a response from GECRB. It is a 100% Bold face LIE! I cant believe they could lie like this and get away with it. They never contacted me, no one called me, or disucssed with me anything that they are claiming to do so!

GE Capital Retail Bank said:
Explanation of closure 

Resolution has been communicated and sent to the customer under separate cover on 9/18/13.

Response 

Researched customer's inquiry.
Contacted customer post inquiry; spoke to customer.
Confirmed payment history and credit bureau reporting.
Provided a direct name and contact number to customer.

[guiness56]

Can you rebutt their claim of resolution?