topic Re: Re Aged Debt ruining my FHA loan!! in General Credit Topics

Re Aged Debt ruining my FHA loan!!

Anonymous — Sun, 15 Oct 2017 02:47:48 GMT

I've been fighting with the credit bureaus and CA since this appeared on my credit report one year ago. It took me a while to figure out what this debt was and finally realized it was mine but DOFD is January 2009!! I filed bankrupty in 2015, so contacted my bankruptcy attorney, who wrote a letter to the CA explaining the debt has been discharged, if it did in fact exist prior to filing. And, here's the kicker, the letter they send to me state the date of first default is Jan 2009! I've sent this info to the credit bureaus. TransU is the only one that deleted the account. The others persist. I've filed BBB complaint again the CA, who replied stating they had no account with my name and do not plan to pursue me. More attempts with Experian and Equifax lead me no where. I file with the CFPB. They both reply they have checked with the CA and are reporting it correctly. Obviously impossible. Okay, so even if they don't believe me, who is giving $60K (oh yes, that the balance on this account) to someone that just filed bankruptcy?? Ugh. I tried to buy a house last year and was denied. Now, I"m in the process of trying again. Offer has been accepted and just waiting on the underwriters. This is my roadblock at the current moment. My finance gal is trying to get it through and I have plenty of spare income, even if they figure me actually paying 5% each month of that debt, which is $3K per month. How do I actually get rid of this from my credit report? It's obviously hurting my scores and costing me money. It seems impossible. Oh and the CA continues to call me numerous times daily. Prior to me filing the BBB complaint, I had never heard from them, other than the occasional letter. Ironic that they start calling, after they claim to have no knowledge of me. If anyone is interested the CA is TSI, aka Transworld Inc.

Re: Re Aged Debt ruining my FHA loan!!

RobertEG — Sun, 15 Oct 2017 05:53:54 GMT

FCRA 623(a)(5) requries a debt collector to separately and explicitly report the DOFD to the CRA no later than 90 days after the reporting of their collection.

The DOFD is then stored in a specific code in the consumer's credit file, called the "FCRA Compliance Date/ Date of First Delinquency."

Since the collection was reported more than 90 days ago, the DOFD must now be of record in your credit file.

The recent lettter may have stated a DOFD of Jan 2009, but you need to ensure that is the same date as has been reported to and is currently stored in your credit file.

If the debt collector has, in fact, reported a DOFD of Jan 2009, then the responsibility for exclusiion of the collection now resides solely with the CRA.

A debt collector is not responsible for removal of their collection based on expiration of 7 years plus 180 days from the DOFD. That exclusion is the sole responsibility of the CRA to track and exclude. Exclusion, based on a DOFD of Jan 2009, would be no later than July 2016. What is the reported DOFD that is of record in your credit file?

A dispute or complaint directed at reporting of the debt collector would only be appropriate if the DOFD of record in your file is inaccurate, and is less than 7 years plus 180 days ago. What exactly was the asserted error provided as the basis for your prior disputes or complaints with the CFPB or BBB, and what specifically was their response?

I dont see how the separate issue that the debt was discharged by BK is relevant. A collection is excluded no later than 7 years plus 180 days from the reported DOFD, regardless of whether paid, or otherwise discharged, or whether it remains unpaid. FCRA 605(a)(4), as modified by FCRA 605(c).

The BK issue would apply to exclusion under FCRA 605(a)(1), which would not be based on DOFD, and would, if chpt 7, be 10 years from date of filing of the BK.

Re: Re Aged Debt ruining my FHA loan!!

Anonymous — Sun, 15 Oct 2017 16:31:04 GMT

Hi Robert, and thank you for the reply. On my credit file it lists the date opened as 8/2016 and the DOFD at 10/16. I've sent letters to the CRA's with this error and they keep coming back stated validated as correct with creditor. It doesn't make sense as the letters I receive state otherwise. It also doesn't make sense as the original amount they claim is $30K and it's now over $60K. That doesn't happen in a few months. The DOFD is January 2009, that is correct. As far as it being included in bankruptcy, that was the words from my attorney when he wrote them a letter in 2016, he stated that according to their own records this debt was present prior to the bankrupcty filing date in 2015 and would be included whether they were reporting on my credit or not, and further stated they are in violation of the law by continuing to try to collect on this debt. I'm just at a loss on how to get this fixed. CRA's not helping, CFPB not helping (though I filed a second complaint this weekend, so crossing my fingers). My mortgage broker has a call into the CRA's to see if she can understand why they don't update.

Re: Re Aged Debt ruining my FHA loan!!

RobertEG — Mon, 16 Oct 2017 19:50:09 GMT

The Open date reported by a debt collector is essentially irrelevant.

They report the Open date for their collection as the date they received their collection authority. It has nothing to do with the Open date of the original account, and has no effect on your credit scoring.

If the collection is showing a reported DOFD back in 2009, then the exclusion date has already passed.

Thus, it should no longer be included in any credit report being provided by the CRA.

If you have evidence that your file shows a DOFD back in 2009 and the CRA is still showing the collection in your credit report, they are violating the exclusion provision of FCRA 605(a)(4) as modified by section 605(c), which defines use of DOFD as the date for determining the exclusion period.

Did any of your prior disputes/complaints state violation of the exclusion provisions of the FCRA as their basis, or did you argue some other issue?

If your credit report is clearly showing a DOFD back in 2009, then credit report exclusion should be a slam dunk........

Re: Re Aged Debt ruining my FHA loan!!

Anonymous — Mon, 16 Oct 2017 22:50:19 GMT

Yes the collection letter sent to me show DOFD is Jan 2009. It's the credit bureau reporting it incorrectly. How do I rectify it when they refuse to update it? Disputes are getting me no where, even sending in paperwork sent by the collection agency to show the discrepancy is not helping me. Short of hiring an attorney I don't know what to do! Yes, you are completely right that it should no longer be on my report at all. That's how it's completely screwed me. Why is it so hard to get this off? I've disputed numerous times in the past year, the same item with no resolve on Experian and Equifax. Transunion deleted the first time. It just feels impossible. The CRA's have us around the neck.

Re: Re Aged Debt ruining my FHA loan!!

RobertEG — Tue, 17 Oct 2017 08:25:02 GMT

After you have received a decision on a dispute, you have two options.

If you feel that the CRA is clearly failing to comply with the FCRA, which apparently is your documented postion, you can file a formal complaint with the CFPB seeking thier reveiw of lack of compliance.

You can optionally file a civil action for lack of reasonable investigation of your prior disputes.

While that option will require bringing a civil action, you can do so in small claims court without need for an attorney.

Re: Re Aged Debt ruining my FHA loan!!

Anonymous — Tue, 17 Oct 2017 12:00:50 GMT

I filed with the CFPB last May and nothing became of it. Just filed again, against both Equifax and Experian. If that doesn't work, I will sue in small claims court. Thanks so much! I had no idea small claims court was an option. I'll need to find more details about that, if I can possibly claim lost wages for having to go to court, and those types of details.