HSBC / Capital One reaged account

[chubbs3]

Recently I disputed an old account (online) with all 3 credit bureaus as not mine. I haven't had a credit card in over twenty years. I did however apply for an Orchard Bank card back in 2006. I was approved but never used it, never activated it, the yearly fee took up the whole credit limit. 

Flash forward to now, I have no information about this account that's showing up on my credit report whatsoever. The account opened in 2006, which was never really opened, no payment was ever made towards it, is now scheduled to drop off my credit report in 2019, 13 years after. Prior to my online dispute of "not mine" it had been scheduled to drop in 2015.

Capital One sent me a letter asking me to forward all questions about the account to Portfolio Recovery, who are not reporting anything, probably due to my filing BK7.

My question is this, can an original creditor turn it's back on what it's reporting just because it sold it's debt? If so, how can I get this off? Would this be a good issue to take to the new Consumer Debt Protection Agency?

[Burned2manybridgesB4]

IMO, once your app was approved, the account was opened, whether you activated the card, or not.

I'm not a "know it all," and there are grey areas here, so I think Guiness56, or RobertEG are needed here.

[RobertEG]

+1

Upon approval of your app, you had an account.

When they send a card, the activation process is to ensure that you actually received the card.  It is a security measure on their part.

They would most likely, in my opinion,  prevail in a challenge of your obligation for whatever fees were agreed to in your application.....

As for removal from your credit report, since only the OC is reporting, the question is...what is intended to "drop"?

OC accounts themselves dont become excluded from a consumer's credit report based upon any time period set forth in the FCRA.

What becomes excluded are any adverse items reported by the OC under the account.

What specifically has the OC reported as derogs on their account?  Monthly delinquencies?  A charge-off?  Are they accurate?

The debt collector, of course, is not the proper party to address the acuracy of any reporting done by the OC, so they are blowing you off.

Recourse would be to file an FCRA dispute over the accuracy of any item of information that has been reported by the OC.

The OC would then be required to investigate any such dispute, and respond back, either to the CRA if your dispute is filed with the CRA, or directly to you if you file a direct dispute.  Both have a required investigation period of 30 days.

They are apt to verify the accuracy of their reporting based on their determination that you did, in fact, have an account, and an obligation to pay the fee.

They dont have to prove the matter.  In my opinion, a complaint to the CFPB would most likely not prevail, as the issue is a legal issue of whether you have the obligated deb.  Thus, any determination of whether they have violated the FCRA or FDCPA would not be factual until that matter is resolved.  The CFPB would most likely not, in my opinion, iniitiate any such proceeding on your behalf for an individual consumer complaint.

You can always challenge the debt by bringing your own civil action, and thus get the determination by a judge of your responsibility for the debt.