01-02-2013 11:02 AM
Happy new year everyone!
So I need a little help regarding a chargeoff on my credit report.....
I've tried a GW letter to GMAC at first and it came back with the generic " we can't help you" letter.
I'm trying to see if a DV is the next step to go? It's showing up on my credit report as charged off, transfer/sold. However, I paid in full , and have the satisfaction and release of mortgage from the loan servicing agency that handled the account after. Could I do a debt validation at this point since it's paid in full already and it's no longer a charged off account, even though GMAC is the first/original lender of the home equity line?
01-02-2013 11:13 AM
01-02-2013 11:28 AM
A charge-off is their reporting of an accounting measure they took on the account at some point in time. That prior action is not negated by any subsequent action on the account, including payment of the debt. Thus, deletion of that fact from your CR is not required based on payment of the debt.
As stated, the DV process only applies to debt collectors, not original creditors. However, even if you contacted the creditor and they agreed to provide verification, their verification would be simple. "We verify that the debt is currrently $0."
You can, if they failed to update the account status to paid, $0 balance, dispute the current status, thus requring its update, and showing others reviewing your CR that the debt has been satisfied. But that wont erase the CO.
The procedure is to request their good-will deletion of that reporting.
01-02-2013 11:30 AM
It is reporting as charged off before I paid it all off to the loan servicing company (i'm assuming that's the CA?)
So then is there anything else I can do if I can't do a DV? PFD?
01-02-2013 11:33 AM - edited 01-02-2013 11:35 AM
If it's paid off a PFD won't help. At this point the only thing you can do is send GW letters.
If it was reporting as a CO before you paid it, it should report as paid after CO, or something along those lines.
01-02-2013 11:39 AM
it still reporting as:
activity designator: transfer/sold
comments: charged off account
01-02-2013 11:43 AM
They are required uhder FCRA 623(a)(2) to promptly update any information previously reported to your credit file so as to maintain its current accuracy.
Give them a call, and remind them of their obligation to update. If that does not gain correction, then send them a direct dispute, with the asserted inaccuracy being their failure to comply with section 623(a)(2).
01-02-2013 01:31 PM
Thank you both for your help!
I tried calling and they said I have to send off a letter requesting such.....I guess back to another GW letter!
01-02-2013 01:45 PM
Good luck with the GW letter. They work, some persistence is involved though.
01-02-2013 03:09 PM
I will definitely be persistent, as long as i'm directing everything in the right direction I will keep at it
Thanks for the help again!