topic Re: Isn't this illegal in General Credit Topics

Isn't this illegal

Anonymous — Mon, 09 Apr 2012 14:44:30 GMT

I had a sear account that I placed in a debt management plan. The account was never late or anything like that. I only did it to pay down the account and saved my credit, bacause the payments were lower.

Three months ago, I dropped the account (Sears) from the DMP and PIF. The account, all this time, was reporting as "Paid as Agreed". As soon as my last payment posted Sears reported a zero balance (thank you very much), but also reported it as a Collection Account with a DOFD as 4-12-12. This is blowing my mind. I know that they are in violation of re-aging but cannot find the statue/law to add to the letter that I am writing them now for their dirty deed. I'm so upset right now.

Could someone confirms that this is indeed a naughty deed on Sears part. Please also post the statue that they are violating too. Thank you!

Re: Isn't this illegal

llecs — Mon, 09 Apr 2012 15:16:26 GMT

Was it a CO prior to including it into the DMP?

Re: Isn't this illegal

pizzadude — Mon, 09 Apr 2012 15:17:12 GMT

Can you clarify exactly what happened ? I'm just speculating, but perhaps when you dropped out of the DMP, then it immediately turned your balance into a collection.

Did you PIF before you dropped out of DMP or after ? And how did you drop out, did you miss a payment, or just send a full payment in for the outstanding balance ?

Re: Isn't this illegal

Anonymous — Mon, 09 Apr 2012 15:27:02 GMT

I made two payments ahead of time prior to cancelling with the DMP. I called the debt management company and asked them to cancel me out of the DMP. Once I realized that I was out of the DMP, I called Sears and PIF. I'm confused how the account could go from pays as agreed to collection account, when I was never late before entering into the DMP and after cancelling out of the program. I just sent Sears a letter asking for clarification or deletion of the negative remarks. Will update!

Re: Isn't this illegal

pizzadude — Mon, 09 Apr 2012 15:33:27 GMT

@Anonymous wrote:
I made two payments ahead of time prior to cancelling with the DMP. I called the debt management company and asked them to cancel me out of the DMP. Once I realized that I was out of the DMP, I called Sears and PIF. I'm confused how the account could go from pays as agreed to collection account, when I was never late before entering into the DMP and after cancelling out of the program. I just sent Sears a letter asking for clarification or deletion of the negative remarks. Will update!

I would think that anytime someone cancels a DMP that the creditor is likely to immediately CO and start collection activities. I'm guessing that is what happened here. Why exactly did you cancel ?

Re: Isn't this illegal

suebee123 — Mon, 09 Apr 2012 16:02:53 GMT

There is another thread on this site dealing with this exact problem. Happened to me and many others in Feb of 2012. Had accounts that were in DMP at one time or another and were reporting as positive tradeliines, and all of a sudden in Feb they were updated to Collection accounts. After many complaints to Citibank, found out they were attempting to change the reporting on DMP accounts, after the fact, must have had alot of complaints, and have switched back to the original reporting. Most of us have got out accounts corrected.

Dispute...the account explaining it was never a collection, and they should correct it.

Re: Isn't this illegal

suebee123 — Mon, 09 Apr 2012 16:05:57 GMT

The previous thread was: citicard paid off now reporting wrong

Hope this helps.

Re: Isn't this illegal

Anonymous — Mon, 09 Apr 2012 17:51:17 GMT

@suebee123 wrote:
The previous thread was: citicard paid off now reporting wrong

Hope this helps.

Ah ha! This is exactly what they'rre trying to do to me too. This is so wrong on may levels. I was not never late with the stupid account. I'll never shop at Sears again, if they don't correct this $%#!. I will also make sure that my extended family do not spend money again there too. A deal is a deal. You cannot change your words once account is PIF and report whatever you want to.

How did you find out when they change the ststus back to positive reporting...via telephone, letter or through the results of your online dispute?

Look at the perfect account payment history below (copied from Equifax)

SEARS/CBNA

PO Box 6282
Sioux Falls, SD-571176282

Account Number:	XXXXXXXXXXXXXXX	Status:	COLLECTION ACCOUNT
Account Owner:	Individual Account.	High Credit:	$3,138
Type of Account :	Revolving	Credit Limit:	$5,000
Term Duration:		Terms Frequency:	Monthly (due every month)
Date Opened:	02/2006	Balance:	$0
Date Reported:	04/2012	Amount Past Due:
Date of Last Payment:	03/2012	Actual Payment Amount:
Scheduled Payment Amount:		Date of Last Activity:	N/A
Date Major Delinquency First Reported:	04/2012	Months Reviewed:	74
Creditor Classification:		Activity Designator:	N/A
Charge Off Amount:		Deferred Payment Start Date:
Balloon Payment Amount:		Balloon Payment Date:
Date Closed:		Type of Loan:	Charge Account
Date of First Delinquency:	03/2012
Comments:	Paid collection, Account closed by credit grantor

81-Month Payment History

Year

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

2012

2011

2010

2009

2008

2007

2006

Re: Isn't this illegal

suebee123 — Mon, 09 Apr 2012 17:59:47 GMT

You should dispute with credit bureau but also call Citi/Sears and explain what happened, they probably got tons of calls and they may be able to correct this sooner than the CRA. I disputed with EQ and TU, they were the only ones affected. EQ already came off, still waiting for TU. I received a Alert from my EQ monitoring say the account status changed to "paid as agreed".

It was obviously a reporting error on Citi's part...don't stop till they remove it.

Re: Isn't this illegal

suebee123 — Mon, 09 Apr 2012 18:00:50 GMT

I believe that about 200,000 Citi customers were affected by this change...so they should know how to fix it by now.

Re: Isn't this illegal

Anonymous — Mon, 09 Apr 2012 18:02:41 GMT

Thanks again! I have seached but cannot find the thread you mentioned. Could you post the link, if possible.

Re: Isn't this illegal

suebee123 — Mon, 09 Apr 2012 18:08:59 GMT

I would if I could but don't know how to do that...LOL! Can you use the search button above and type suebee123 and user and then search?

You may find the link thru my postings to it.

Re: Isn't this illegal

MarineVietVet — Mon, 09 Apr 2012 18:18:30 GMT

@Anonymous wrote:
Thanks again! I have seached but cannot find the thread you mentioned. Could you post the link, if possible.

Here is the link: Citi card paid off and now reporting wrong.

Re: Isn't this illegal

Anonymous — Mon, 09 Apr 2012 19:03:59 GMT

Thank you.

Re: Isn't this illegal

RobertEG — Tue, 10 Apr 2012 03:50:35 GMT

Back to square one.....

How did the creditor report a collection?

Creditors are not debt collectors, and dont report collections.

They can report that they have placed or referred an account for collection, but it is not a collection per se until one is reported by a debt collector.

As for DOFD, a DOFD is defined, by statute (FCRA605(c) and FCRA 623(a)(5)) as being based on a "commencement of delinquency."

If there was no reported delinquency, and you feel you were never delinquent, then I would dispute their reporting of a DOFD on the account, regardless of the date they reported, as being a violation of FCRA 623(a)(5), which covers the requirements for reporting of a DOFD. No delinquency = no DOFD.

Reporting of DOFD is regulated by FCRA 623(a)(5), which should be your statutory basis for any issues relating to inaccurate reporting of a DOFD.

There are two relevant issues in your post. The first is whether or not there even is/was a DOFD to report, and the second is, if so, what is the date of commencement of the delinquency that occured immediately prior to their reported "collection."

I would refrain from using the term "re-aging." It does not look as if they have re-aged any prior reporting, but rather have mis-reported DOFD as it is defined in the statute.

Re: Isn't this illegal

Anonymous — Tue, 10 Apr 2012 19:11:48 GMT

Can someone please tell me what to do next. Sears will not change the new reporting that they added to my CR (Collection paid). They say the law change and all their account that were in a DMP will be assigned a paid collection once the account is paid in full. But this contradicts the agreement they accepted on 2/21/2010, when I entered into the DMP. The agreement states that they agreed to lower the interest rates, brought the account current and accept the negotiated payment that I paid until account was paid in full last month. All this time they were reporting paid as agreed.

I am hoping one of the folk who had this collection/CO removed from their bureau files, help me out and let me know.

1. when you file complaint with BBB, who you list as the company, Sears or Citi?

2. Provide a point of contact to the presidential office. i could not find this contact.

Re: Isn't this illegal

RobertEG — Tue, 10 Apr 2012 20:15:48 GMT

The FCRA assigns administrative enforcement to the FTC, so filing a complaint with them is the prescribed first step.

Your BBB can send nasty-grams, but has no actual, legal enforecement power. Your state AG may choose to intervene, so that is another avenue.

Unfortunately, the FTC does not carry its statutory enforcement authority to the step of taking legal action on individual consumer complaints, for many reasons.

Administrative enforecement, regardless of the source, cannot compel legal discovery of contested facts.

Thus, to get the issues before a party authorized both to compel discovery of facts and reach their own decision as to what the evidence supports, one needs to get the issue into a court.

Final avenue is to bring civil action for violation of the FCRA. Whether or not something is "illegal" is the sole perview of the courts.

Re: Isn't this illegal

Anonymous — Wed, 25 Apr 2012 20:59:48 GMT

Well, my letter to the BBB on this matter has prompted the Executive team department to look into and address the problem I had with Sears. They are now reporting a paid as agreed.

Re: Isn't this illegal

AndySoCal — Thu, 26 Apr 2012 03:00:29 GMT

I see the account has been closed. Could the DMP as part of getting lower payment amount agreed to the have account closed? Call Sears and ask them why thye are considering this a collection account.

Re: Isn't this illegal

Anonymous — Thu, 26 Apr 2012 19:17:18 GMT

Sounds like BBB solved this. Yeah BBB