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Regular Contributor
Posts: 152
Registered: ‎03-29-2009
0

Repo showing balance, Dispute?

I have a repo on my Experian credit report, showing jan 2009 repo and with a balance of 12k.

I want to dispute the balance, because they sold it to a CO and i have been paying payments to the CO and not the Creditor. Will they update this to 0 balance since the balance is not 12k anymore? Plus the CO is collectiing it now not the original creditor. Will it hurt to dispute this?

Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
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Re: Repo showing balance, Dispute?

[ Edited ]

keikdasneak wrote:

I have a repo on my Experian credit report, showing jan 2009 repo and with a balance of 12k.

I want to dispute the balance, because they sold it to a CO and i have been paying payments to the CO and not the Creditor. Will they update this to 0 balance since the balance is not 12k anymore? Plus the CO is collectiing it now not the original creditor. Will it hurt to dispute this?


Whenever there is a repo, the account is already late with a 30-60-90 and so forth up to the repo. Then it gets CO'd and a CO (charge-off) remark will appear monthly up to the point the loan is PIF or sold to a CA (collection agency).

 

If a CA is collecting on this CO from the OC (too many acronyms), it doesn't necessarily mean that the CA owns the debt. The OC can still own the debt, report the debt, and assign it to a CA who will collect on it, receive money on the debt on behalf of the OC, and likely won't report. Once it gets sold, then the OC will report $0 with a remark that it is a paid CO and usually the CA will begin reporting.

 

Is the OC updating or have they updated since you've been making payments? If so, then they are reporting correctly. If not, then one of two things is happening: 1) they indeed sold the debt to a CA as you mentioned or 2) the OC still owns the debt but failed to update.

 

If I was in that situation, and it had not updated, I'd hold off on the dispute. If the OC owns it, they will update with additional lates and that can drop your score. If the OC doesn't own it, then they can still update it with $0 and that also can drop your score. There's also the chance they may delete, but that's a huge gamble, IMO. Besides, when you dispute, the CRA sends the OC your updated contact information and that can lead to further collection activity by the CA if you're not on a monthly plan.

Regular Contributor
Posts: 152
Registered: ‎03-29-2009
0

Re: Repo showing balance, Dispute?

Thanks, they sold it to a collection agency called Access Capital, they are reporting on my TU every month with balance and added fees etc... But the original creditor still has the balance posted when it was first repo'd. So i was assuming i should dispute, i was hoping maybe they would delete it, but i know those chances are very slim... Would be great tho.

Epic Contributor
Posts: 21,568
Registered: ‎03-19-2007
0

Re: Repo showing balance, Dispute?

[ Edited ]

When an OC does a repo or charge-off of debt, it is reported to multiple field codes of your credit file.. Some remain withoutout update, and others can be updated monthly.

So when your CR shows informtion about a CO/repo, it is oftten difficult to dispute the accuracy, for it may reflect past credit codes, or curent status codes.

 

When an OC first reports a repo of charge-off, they report numerous items.

They report whar are called "sticky" codes, which are normally reported once, and remain in your credit file without later update to record the historical date and amount of the original charge-off.  More specifically, the date of first charge-off or repo  is recorded in filed code 18, which is your payment history profile entry for that month, and the original amount of the loss or debt charged-off is recorded in field code 23, "Original amount charged to loss."  That may the source of the reporting of the charge-off/repo amount that you are now seeing posted in your comsumer credit report, leading you to belive that that reflects your current status, when it does not.

That is not the same as the balance of what you may now owe the OC.

They also report "current status" codes, which are updated monthly to show the progression, and current status of the debt.

The most prevalant of those is field code 17, which shows only the current monthly status, and is updated each month.  The OC will originally report a current status code of "unpaid balance reported as a loss or charge-off"  They also record the current balance owed under field code 21, reduced, of course, monthly, by any payments you have made on the debt since its original charge to loss..

 

Then, as months progress, the OC may choose to update by continiing monthly reporting.  Those updates dont update the "sticky" date of original charge-off  and dont change the "sticky" prior monthly status as a CO in your payment history profile.  What they update are changes in current status, such as being referred for collection (field code 18), current status such as "paid, was once a charge-off" (field code 17A). still an unpaid collection, along with the current debt owed to them (field code 21).

 

If the OC sells the debt to a debt collector, then your debt owed to the OC would be updated to show $0.  But that does not erase the inclusion in your credit file of the orrignal amount of the debt they charged-off, or its date.  They remain, and can be assessed from your credit file.

But this reportting of $0 by the OC does not mean that the debt has been paid.  The purchasing debt collector can then report the debt owed to them if and when they choose to report to a CRA.

 

Simply stated, when a OC reports "%0 balance," that does not reflect what you owe on the debt.  It only reflects that they no longer have a portion of claim for the unpaid debt, and have left that to the debt collector to deal with.

 

So what are you going to dispute, and who are you going to dispute it with?

One of the problems with credit reports vended to consumers is that they are a condensation and sanitation of the entire contents of your credit file.  They often confuse dates, implying that some refer to OC or CA reporting, when they were not so reported, and some dont disttinquish between current status and the underlying "sticky" ifnormation that supports them.

 

I dont see a dispute.

 

 

Regular Contributor
Posts: 152
Registered: ‎03-29-2009
0

Re: Repo showing balance, Dispute?

[ Edited ]


Experian shows the file like this... But no collection are present on my experian report, only transunion shows the collection and repo, totallying the debt for 28k instead of 14k.. EQ doesnt show the repo they deleted it for some reason, so i am happy about that.

 

My Experian only shows 1 negative and this is it. So i trying to clean it up

Status:
Repossession.     
Status Details:
This account is scheduled to continue on record until Oct 2013.
 
Date Opened:
02/2006
Date of Status:
12/2008
Reported Since:
03/2006
Last Reported Date:
04/2009
    
Type:
Installment
Terms:
61 Months
Monthly Payment:
$0
Responsibility:
Joint with " XXXXX "    

Credit Limit:
$14,176
High Balance:
N/A
Recent Balance:
$12,448
Recent Payment:
$50
 
Account History:
Repossession as of Apr 2009, Jan 2009, Dec 2008
180 days past due as of Aug 2007, Jul 2007
150 days past due as of Jun 2007
120 days past due as of May 2007
90 days past due as of Apr 2007
60 days past due as of Mar 2007, Feb 2007
30 days past due as of Jan 2007, Oct 2006, Aug 2006, Jul 2006, May 2006
 
Balance History:
01/2009 $12,498
12/2008 $0
 

Limit High Balance History:
The original amount of this account was $14,176

Epic Contributor
Posts: 21,568
Registered: ‎03-19-2007
0

Re: Repo showing balance, Dispute?

[ Edited ]

Here is what I see.

I see 12 monthly account delinquencies on the OC account, with staggred CR drop off dates from after 5/2013 until 8/2014.

I see a collection, at least with one CRA, for which the DOFD has not been clearly determined.  I would gjuess  from payment profile that you have posted that the DOFD may be 10/2006, as the first date of delinquency in the most recent chain of delinquencies that led to the repo/CO/CA.

A DOFD of 10/2006 would not cause the CO or CA to drop until after 4/2014.

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