HSBC not understanding the FCRA

[dlbomber1]

Today I spoke to HSBC bank today in reference to a paid charge off, they say they sold it to Arrow financial but they surely took my payment and Arrow financial deleted thier end. But now, HSBC is saying they dont own the account anymore and its been sold to Arrow Financial so its them who have to remove the original entry.  I told them that the underwriter looks at this it doesnt show any relation to Arrow Financial so it appears to be two seperate derogatory accounts. I have disputed this and "HSBC" states the information is correct as reported. 

So I asked them if this account belongs to Arrow Financial and has your name on it , why is the bureau contacting you and why are you answering back validating something that nolonger belongs to you and your verifying incorrect data. They say they transfer the call to Arrow financial. I told them that is hogwash because Arrow has thier own entry and says they have no control over the original entry. So I said if your not taking ownership of your entry and Arrow financial isnt as well, then your violating the FCRA and it needs to be removed. They said they were going to open a ticket, couldnt make any promises but would look into it. How can noone own a entry on someones credit report and why would you take the call and say its correct if you dont own it?    

[neptunejcw]

let me know how that goes, i got a paid charge off from HSBC i  want removed but they wont. It was sold to some company called capital managament. I paid them but HSBC refuses to delete

[guiness56]

HSBC took your money after the account was sold?  That is illegal.

They may not own the account but they are the creditor who placed the TL on your report and are the only ones who can remove it.

[dlbomber1]

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@neptunejcw wrote:

let me know how that goes, i got a paid charge off from HSBC i  want removed but they wont. It was sold to some company called capital managament. I paid them but HSBC refuses to delete

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You will be in the same situation soon because if capital management gets removed, HSBC will claim thier entry belongs to Capital Management.  I think this time they know they are wrong but well see what they do.

[neptunejcw]

I didnt pay hsbc, i paid the collection company but I was hoping HSBC would have deleted it if I disputed it. no luck though

[bahbahd]

I might be misunderstanding your whole story since pieces may be missing, however, it appears as if you are confused about how one CC or loan can result in two negative tradelines on your reports.

If you have an account with HSBC, they can report as so (while the account is open or closed.) When you become delinquent (fall behind in payments,) HSBC can report late payment remarks to the account on your CR while they still report the balance due. If you do not pay for an extended period of time, HSBC can deem your account a CO reasonably believing that you will never pay your debt. At this point they can retain the services of a CA to help collect payment from you, but HSBC could still own the debt.

 If HSBC sells the debt to recoup some of their losses, the HSBC account should reflect $0. After which, the owning debt buyer (CA) will also report the account in collections. There is nothing incorrect about HSBC reporting a $0 balance charged off account while a current debt holder also reports a CA account for a balance due.

[bahbahd]

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@neptunejcw wrote:

I didnt pay hsbc, i paid the collection company but I was hoping HSBC would have deleted it if I disputed it. no luck though

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In the above scenario, the OC is not obligated to remove any previous derogatory payment remarks simply because a final payment or settlement was made to a CA. This is true no matter if the debt was sold to the CA or not. In either case, the only thing the OC would be incorrect in reporting would be a balance due.

[guiness56]

The OP isn't confused about either the OC or the CA reporting.  OP is aware there can be two TLs.

The entire gist of the post is that HSBC is stating because they sold the account to a CA only the CA can remove the OC TL.  It doesn't work that way.

[bahbahd]

Then the OP is just being given the run-around. HSBC has no intention of removing the tradeline. HSBC is now following marching orders from CapOne. Quite possible that their internal transition is complete and it is now CapOne representatives that are fully handling old HSBC accounts