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02-26-2013 12:15 AM
I have an old Refund Anticipation Loan ($1939) I received that has been charged off back in 2007 from H&R block. I got audited and so I owe the money to HSBC / Taxpayer Financial Services. I sent a PFD to 4 different addresses I've found for them and I have gotten no response. My question has to do with how this loan is affecting my credit score.
I have a Cap1 secured card for $200 that I never carry a balance on, charge, then pay in full each month. My Equifax utilization is 0.
My TransUnion however is at 90%. 1939 / (200 + 1939) = 90%. So TransUnion is reporting this charged-off debt as a revolving account. Surely this is wrong. Who do I talk to in order to correct this, TransUnion, HSBC? It will fall off my report around 3/2014 but I dont want to have that high Utilization for a full year.
02-26-2013 06:59 AM
If it has been charged off then the credit report is reporting that you owe it in error. You can dispute it with the credit report and they should get to the bottom of it. If they come back to you and say that they verified the debt then ask them who you owe it to. If you never paid it then you may want to consider some sort of Pay for Deletion scenerio where you pay some or all of it back in exchange for the record being deleted from your credit reports. You are right that you do have to do something to get to the bottom of this either way because 90% utilisation is a real credit score killer.
02-26-2013 09:35 AM
I've heard that if they charge it off but do not sell to a collection agency they can still report a balance, but its funny beacause I just had my previous tax income adjusted because the irs said I didnt report that charge-off as income. I've already disputed and the debt is mine, I know I owe it and like I said I sent PFD letter to 4 different addreses with no reply.
Talked to TransUnion today, they said it is reporting as unsecured loan and I could dispute it if I want but Im not disputing the fact that it was an unsecured loan, I want to dispute the fact that it is reporting as revolving balance on my TransUnion. I was told to talk to myFico to see why it was reporting like that.
Talked to myFico, they told me they dont edit any info and if its not TransUnion, I need to talk to HSBC, kinda scared tho, I dont want to say something that will get me sued or reset the date because its sceduled to fall off 4/2014.
02-26-2013 09:41 AM
I think you are wise to be careful with this situation. You certainly don't want to be sued or have it reaged. If you don't absolutely need credit right now then you might want to wait for it to go away/ . If you feel like paying it off than you can call and offer to pay it off but I agree with you that you don't want to risk reaging, Maybe someone else who is better verse in this than me has some advice for you concerning this situation..