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Valued Member
Posts: 36
Registered: ‎10-17-2012
0

Help please! Anyone? Key Derogatory SBA Line of Credit Charge Off US Bank

[ Edited ]

Hi everyone. I’m fairly new here. You have been a great help. Here’s my item for today: My husband and I own a small business. In 2001 we opened an SBA Line of Credit with US Bank. Limit - $9500. In 2009, in the depths of the recession, we couldn’t continue to make the payments. We contacted US Bank, hoping they could help – we had heard there may be a government program. No help there. We contacted the SBA, made contact with an individual here in the SBA SoCal office. He made plan to call us back – said there may be some options. We waited. After a week I began leaving him voicemails. After a couple weeks of voicemails to his direct line went unreturned, I called the main line of the SoCal office. The receptionist informed me that the man had DIED! Oh boy. No one had thought to change over his phone or his outgoing message – or to transfer his files to another employee. By this time, the SBA person told me, our account had gone from US Bank back to the U.S. Treasury. So I called the Treasury. They said it was now at a CA. I called the CA, and it was too late to work out any government “recession” program. The last payment we made was in January, 2010. Here are the details:

It is NOT being reported as in collections. It shows as a credit item, with US Bank.

https://dl-web.dropbox.com/get/Photos/myfico/sba%20usbank1.png?w=2d847214

 

 

Oh, and also, EX has it reported twice! Same Account number but different address and phone number for US Bank. Here it is:

https://dl-web.dropbox.com/get/Photos/myfico/sba%20usbank2.png?w=dbdbfeb2

 

So, I have learned from recent mistakes not to take any action without asking advice from experienced folks like you! What can I do with this item?

 

  1. Is there still a chance that it can be turned over to collections? What do I do to prevent that? I don’t think I ever made a payment to any CA, although I remember speaking to them on the phone once in 2010
  2. Should I try a GW letter? And what would I request? The whole item removed from CRs? Change the KD reporting? I’ve read that KD is REALLY bad for the score.
  3. Regarding the duplicate reporting with EX, I mailed a dispute, priority mail delivery confirmation on 9/28/12. EX result kept item unchanged. I phoned on 11/5/12, and they submitted my dispute. I haven’t received result from that call.

Any advice on any of this? My husband and I were turned down for a refi recently – not due to this particular item – but I am trying to clean up everything.

 

Thanks in advance for your help!

Valued Member
Posts: 36
Registered: ‎10-17-2012
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Re: Help please! Anyone? Key Derogatory SBA Line of Credit Charge Off US Bank

BUMP Smiley Happy Also, should I try PFD? I'm afraid to do anything without advice.

Moderator
Posts: 13,897
Registered: ‎04-15-2011
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Re: Help please! Anyone? Key Derogatory SBA Line of Credit Charge Off US Bank

Hello, I'll try to give you the best advice I can.  Keep in mind I can't see your pics, I'm on satellite connection right now and sometimes I don't get all the pics.  I work for the government and this computer has some weird filters.  But that aside, yes you will have to work with the CA on this one and a PFD will be the way to go.  So, I take it this wasn't a LLC?  That would limit the personal liability on this.  I would contac the CA and see what kind of agreement can be worked out.  If you could post the info in text form I could look at it, or I'll be back in civilization on Friday.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Valued Member
Posts: 36
Registered: ‎10-17-2012
0

Re: Help please! Anyone? Key Derogatory SBA Line of Credit Charge Off US Bank


Shogun wrote:

Hello, I'll try to give you the best advice I can.  Keep in mind I can't see your pics, I'm on satellite connection right now and sometimes I don't get all the pics.  I work for the government and this computer has some weird filters.  But that aside, yes you will have to work with the CA on this one and a PFD will be the way to go.  So, I take it this wasn't a LLC?  That would limit the personal liability on this.  I would contac the CA and see what kind of agreement can be worked out.  If you could post the info in text form I could look at it, or I'll be back in civilization on Friday.


Thanks. Here is the text version. Also, the CA is not reporting it at all on the CR. And I'm confused, because I've read in boards that if the account has been transfered to CA, it should show zero balance for OC. Which is not the case. Thanks, and happy Thanksgiving!

 

EX: Account Name: US BANK, Account type: Line of  Credit,  Balance: $2343, Date Opened: 4/1/2001, Account Status: Closed, Status: Account Charged off. $1912 written off. $2358 past due as of Nove 2012. This account is scheduled to continue on record until Sept 2017. CREDITOR’S STATEMENT: “Transferred to recovery”. This item was updated from our processing of your dispute in NOV 2012, (I had disputed with Experian because they have the account listed twice – DUPLICATE)

 

EQ: Account Name: US BANCORP,  Account Type: Revolving or Option, Balance: $2339, Date Opened: 4/1/2001, Account Status: Closed, Mo. Payment: 205, Payment Status: Bad debt and placed for collection and skip, Comments: Charged off account line of credit

 

TU: Account Name: US BANK, Account Type: Line of Credit, Balance: $2339, Past due: $2339 Opened 4/16/2001, Account Status: Closed, Payment status: Charged off as bad debt. High Balance: $9989. Limit: $9500, Comments: Profit and loss writeoff

 

Then, EX has it listed AGAIN as:

Account type: Line of Credit, Balance: $2246, Date opened: 4/1/2001, Account Status: Closed, Payment Status: Account charged off. $1912 written off. $2246 past due as of Mar 2012. This account is scheduled to continue on record until Jul 2017. This item was updated from our processing of your dispute in Mar 2012

Moderator
Posts: 13,897
Registered: ‎04-15-2011
0

Re: Help please! Anyone? Key Derogatory SBA Line of Credit Charge Off US Bank

They are still listing a balance, so I would assume that they still have the debt, otherwise it would be $0.  Do you have the funds to PFD?  They are fairly recent so I would assume that they are within the SOL of your state.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
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Valued Member
Posts: 36
Registered: ‎10-17-2012
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Re: Help please! Anyone? Key Derogatory SBA Line of Credit Charge Off US Bank


Shogun wrote:

They are still listing a balance, so I would assume that they still have the debt, otherwise it would be $0.  Do you have the funds to PFD?  They are fairly recent so I would assume that they are within the SOL of your state.


Well, that's a good question. Would the PFD be for the amount past due? That's less than the last amount they tried to get from me. Should I write a letter for PFD for the amount past due? From what I've read on the boards, if they don't own the debt and receive the PFD, then they will have to say so and report a zero balance. And yes, I am still within SOL, and this is an SBA line of credit, which means the US Treasury is involved. Is it odd that I haven't heard anything from CA or Treasury? It makes me wonder whether I should just leave it alone. I'm so confused!

 

Valued Member
Posts: 36
Registered: ‎10-17-2012
0

Re: Help please! Anyone? Key Derogatory SBA Line of Credit Charge Off US Bank


ZiggstergetsaREFI wrote:

Shogun wrote:

They are still listing a balance, so I would assume that they still have the debt, otherwise it would be $0.  Do you have the funds to PFD?  They are fairly recent so I would assume that they are within the SOL of your state.


Well, that's a good question. Would the PFD be for the amount past due? That's less than the last amount they tried to get from me. Should I write a letter for PFD for the amount past due? From what I've read on the boards, if they don't own the debt and receive the PFD, then they will have to say so and report a zero balance. And yes, I am still within SOL, and this is an SBA line of credit, which means the US Treasury is involved. Is it odd that I haven't heard anything from CA or Treasury? It makes me wonder whether I should just leave it alone. I'm so confused!

 


Hi Shogun, two more questions. So, if the OC still shows a balance, but their comments say they "transfered to recovery" and "charged-off as bad debt", "UNPAID BALANCE CHARGED OFF" etc. what does that mean? I mean, how can they still own it if they wrote it off? Also, what should I do about the fact that EX is still reporting it twice - Duplicate? I've disputed via CMRRR plus online, plus on the phone, and they keep just verifying one or the other TL. Arghh

 

Moderator
Posts: 13,897
Registered: ‎04-15-2011
0

Re: Help please! Anyone? Key Derogatory SBA Line of Credit Charge Off US Bank

If it says transferred to recovery, it could be an internal recovery and not an outside CA.  I would contact them for the current amount, and if possible, send a PFD.  If you wait it will most likely go to a CA, or since it is federally backed, it might not have a SOL, kind of like student loans.  I'm just not really familiar on SBA loans.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
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