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10-27-2012 09:03 AM
I had a charge off back in 2007 for a credit card I had with mbna. It has gone through collection with nco financial. Nco financial was on my credit report for 3-4 years and came off in June 2011. The mbna charge off is still on my credit report. But in Jan 2012, CVF/Resurgent popped up on my credit report for the mbna debt. CVF would not delete after asking for validation, disputing with the credit bureaus, going through the attorney state office in Alabama and South Carolina, and having a lawyer speak on my behalf. I want to get a home loan in Feb 2013. I was advised to settle because suing could take up to a year. They refuse to do pay for deletion. Got the settlement in writing but the collection will say settled for less... When paid. I just sent it knowing I can not have any collection with a FHA loan. Will my credit score take a punch even though CVF just popped up on credit report less than a year ago? If so, how much? MBNA charge off is still on credit report from 2007.
10-27-2012 02:02 PM - edited 10-27-2012 02:04 PM
The date of the charge-off, either when it was taken or reported, is not the relevant date for your credit reporting concerns.
Both charge-offs and collections become excluded from your CR based on the same date.... the DOFD on the OC account that preceded either of those actions plus 7 yrs plus 180 days.
Locate the DOFD on the account by finding the date that you first went delinquent, and thereafter did not bring the account back into good-standing prior to either the CO or collection. Add 7 years plus 180 days to that one date-certain, and that will be the date that both MUST be excluded from your CR.
If that date is prior to your mortgage app date, it wont be affecting your score at that time.
However, being excluded from their view by a simple pull of your CR might not, as you surmised, clear the decks. If they are or become aware of that old, unpaid debt via other means, such as affiliate sharing of information or simply asking you upon application, whether you have any old, unpaid delinquent debt, it may still be a threshold issue for loan approval, regardless of its lack of current scoring impact. So you take your chances....
As for suing, I have no idea of what violations they have made that may support legal action on your part. From your post, I see no clear violation.
While you mention disputes and AG involvement, I dont see a stated basis for your asserted violation. If the debt remains unpaid, charge-off does not in any way relieve your continued obligation for the entire debt, thus permitting either the creditor, their assigned debt collector, or any heir to the debt, to continue to attempt collection, and report those actions to the CRAs.
What is their violation?
10-28-2012 06:45 AM
The financial advisor that I was working with stated that the CO was reporting as a factoring company and they did not send the validation that we asked for, just a verification. They were adding interest to the debt and could not produce the original contract that states they could do that. They popped on my CR in Jan of this year. But have a reporting date of August 2011. The OC DOFD is Feb 2007. The CO will not do a PFD, but I settled with them anyway. Will my credit score go down after settling with the CO? If so, how much?
10-28-2012 09:10 AM
OP, if the CA was updating regularly, then paying it will not have any more of a negative impact that what is showing now. Even if they never updated since first reporting in January, 10 months is a short period of time and I wouldn't foresee any score change. Generally you do not see any score change when paying a CA.
The "factoring company account" mention is benign. It's another term for a CA. FICO ignores it and lenders would still know that it is a CA.
Per the FDCPA, the only thing the CA needed to provide is the balance, the OC name, contact info, and a copy of the judgment if sued. They don't need to send anything else, though you can certainly ask for it.
Send a GW to this CA.
10-29-2012 01:12 PM
In response to a DV request, the statute (FDCPA 809(b)) does not require the debt collector to prove their verification of the debt.
It requires that the debt collector "obtains verification." Complete validation may also require the debt collector to provide a copy of any judgment, if one has been entered by a court, and the name and address of the original creditor, if the DV request specifically included request for identity of the OC.
It would be wise for any debt collector to also have in their records a copy of the original account agreement executed between the consumer and the original creditor, for as you have correctly stated, FDCPA 808(1) makes it a violation for them to attempt to collect any amount either not specifically authorized in that original agreement or otherwise specifically permitted by law. However, in my opinion, nothing in the statute requires them to secure and provide such documents to the consumer. It is the consumer's responsibility to assert any such violation, and to have their own supporting documentation.
The DV process is basically a requirement that the debt collector put into writing that their collection is based on a reasonable review of their records and has factual support, not just an assertion of indebtedness.
Should they provide unsupportable verification (e.g., they lie), and the issue is ever before a court who can compel production of their supporting basis, they face the wrath of the judge.