Credit Card Center Advertiser Disclosure†
11-01-2010 09:52 PM
My BK discharge date is 11/05 but I have been making payments on an auto, which I didn't reaffirm, and the bank has been updating the DOLA on a regular basis. Is that a violation? Can a creditor continue to report payments and update the DOLA after the BK filing or discharge date?
11-01-2010 09:59 PM - edited 11-01-2010 10:03 PM
Was this debt included as a debt specificallty discharged in your BK? Apparently not, since you are still paying.
In that case, yes, the credtitor would be entitled to report current activity on the account.
11-02-2010 04:49 AM
Many auto lenders (including my former lender) stop reporting once included in bankruptcy, even though the borrower is doing a "drive through" and paying on the loan. I had wanted the good line and wound up letting them have the car since it was IIB and they insisted on non-reporting.
Why don't you want the reporting? Who is the lender?
11-02-2010 05:59 AM
I see what you mean dogman. I had the problem of a couple of creditors (CapitalOne CC was one) simply updating zero balance monthly. That had the same effect on scores.
The situation is this - you don't owe the bank the money because the debt was discharged in bankruptcy. The bank retains its security interest in the car. So until the loan is paid off and you gain clear title, the bank can exercise it's rights as the secured creditor to repossess. This is an area where I've not been able to find clear unambiguous binding legal references. One concern - some lenders will refuse to let you keep the car and continue paying if you don't reaffirm the debt. Ford Motor Credit for example says in their loan agreement that filing bankruptcy is an event of default and use that to give them the right to repossess. So pushing Wachovia on this might trigger a repossession.
I wound up doing a direct dispute letter with the creditor to get it to subside.
Here's what I might say in a letter to Wachovia:
This account was discharged in Bankruptcy on XX/YY. I have chosen to keep the vehicle that secured the loan and make the required payments but did not reaffirm the loan. My obligation on the loan is therefore discharged and your continued credit reporting constitutes collection activity in violation of the permanent stay. To cure this violation you must correct all reporting to reflect last activity on this debt no later than the date of the Bankruptcy discharge.
11-02-2010 06:14 PM
Thanks chasmith! This is a great letter! They can't repossess because I just paid it off and received the title which brings up another issue. The closed date on my reports is 09/2010. Shouldn't the closed date on my CRs be no later than the discharge date?
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.