Questions for the Experts!

[nashfm]

Ok I have about had it with 2 creditors that are reporting to my credit report. After months of trying to get these issues resolved I am at a loss of what to do. I am fairly sure that both are in violation of FCRA however I want to make sure before I proceed and would like advice from others:

Situation 1 : HSBC Orchard CC that was charged off and PAID IN FULL with them. It was never sent to a CA. On my credit reports it reads as follows "account settled for less than full balance" I have bank reciepts and statements showing it was paid in full, I have faxed them, snail mailed them, emailed them and they still have not fixed this. I have disputed with the CRA's and it comes back verified. I even have a letter from HSBC stating the account was paid in full. I have even sent this to them and to the CRA and still wont fix. What are my options as far as a lawsuit? Or any other options. What violations do I have them on?

Situation 2: Old charge off with local bank. We will call them bank A. They were bought out it 2008 by bank B. Both bank A and Bank B are listing this account on my reports as a charge off. Bank A does not show a balance. Bank B shows a charge-off with a balance. Bank B also continues to add fees and interest after they charged off the account. Is this legal? Are both banks allowed to report? What are my options with this account?

And last but not least, I live in Texas and the SOL is 4 years. The situation with the bank above was a reposession. Does the SOL begin at the DOFD or at the time of the sale of the vehicle? Any information on this would be greatly appreciated. Thanks

[llecs]

I'm no expert, but I'll give it a shot.

Orchard- that comment hurts. I'd be bugged by it too. If you have concrete proof that you got paperwork from them listing a balance owed and you paid that balance in full that same month, then the CRAs should have removed that comment. If this is the case and verified on that point, then I'd call the OC and offer to them what I had and escalate up the food chain until you found someone to change it. The CRAs won't change this...it would have to come from the OC. Violations? I dunno. Lawsuit? You'd have to show damages if suing for money (I don't know if the FCRA applies in this case per the reporting) and you'd have to show the proof of payment in relation to their notice.

CO Bank A + B - Both can report unfortunately. I see posts all the time in Student Loans where someone w/ 120 day lates ends up getting their SL bought out by another then that new SL reports the old history w/ lates as well. So if Lender A reports 4 lates, now Lender B reports the same. Scary stuff and IMO, they shouldn't be allowed to report like that but it happens all the time. This applies to your first example above as well, but Bank A can report a CO and Bank B can also report the same and continue to add interest long after it gets CO'd. Aside from a default clause in the contract, any lender can add interest every month up to the point they sell the debt to someone else or you pay or settle. DW had a CapOne CO. It reported lates going up to 180 days then they added CO lates monthly with interest up to the point they sold it to a CA. It's amazing how fast $250 turned into $775. Options? If past SOL or if you have the $$$ to PIF (you can always settle), you can PFD Bank B and if accepted and deleted, send a GW to Bank A w/ the mention that you paid it.

In most states, SOL begins at DOFD. DOFD is the date you first went delinquent and never recovered. DOFD preceeds the repo date or date of auction. You should find DOFD listed in one form or another on your CRs pulled directly from the CRA (DOFD on EQ and drop off dates - subtract 7 yrs, on EX and TU). Now some states factor SOL off the date of last payment, or based on an admission of the debt. YMMV based on state law. But a vehicle sale wouldn't be considered a payment on your part, IMO.