topic Re: HUGE Problem with Charge-Off/Sold Acct. in Rebuilding Your Credit

HUGE Problem with Charge-Off/Sold Acct.

Kevin5974 — Wed, 13 Mar 2013 21:39:00 GMT

Hello Everybody,

I have an old Zales credit card issued by Citibank. In July of 2007, it charged off with a balance of about $400. Citibank has updated every month tacking on a couple dollars in interest. Today it is at $1,127.00. Late last year, I received a settlement offer for this account. I contacted the collection agency and since it had not reported yet, I opted to settle. I figured it was easier than trying to get a PFD after they put it on. Once paid, they did not report. However, I have CitiBank STILL reporting every month that this debt has not been paid. This is obviously impacting my utilization in a huge way. I need advice on how to go about this. I have called Citi and they INSIST they are not reporting when it is evident they are. I faxed them my dispute and have mailed them my dispute with copies of the settlement to the company they acknowledge selling the debt to! Please help with some email addresses or an executive office number.

Thanks,

Re: HUGE Problem with Charge-Off/Sold Acct.

RobertEG — Wed, 13 Mar 2013 21:57:13 GMT

It is stated that they acknowledge selling the debt. That makes things simple.

If they sold the debt to the debt collector, there really is no issue of their reporting on the subsequent payment of the debt.

As soon as they sold the debt, they were required under FCRA 623(a)(2) to have promptly updated the balance on their account to $0.

The debt collector is the party who reports payment of the debt by updating their collection to $0.

Thus, the updating by the OC does not involve any need to show the debt was satisfied.

They are in violation for not promptly reporting the balance to be $0 at the time they sold the debt.

Open and shut case if they sold the debt.

Re: HUGE Problem with Charge-Off/Sold Acct.

Kevin5974 — Wed, 13 Mar 2013 22:16:54 GMT

Thanks Robert. I felt the same way. They won't give me to anyone who can help. They have asked me to fax their findings to their Credit Reporting Dept. who have done nothing the past few months. How would I go about resolving this???

Re: HUGE Problem with Charge-Off/Sold Acct.

notyours — Thu, 14 Mar 2013 00:11:05 GMT

Would BBB help in this situation? has to be some executive emails out there that someone can send you.

Re: HUGE Problem with Charge-Off/Sold Acct.

Rain77 — Thu, 14 Mar 2013 12:14:30 GMT

Have you contacted the CA you paid to see if they notified Citibank of payment? Did the CA send a letter stating you paid?

Re: HUGE Problem with Charge-Off/Sold Acct.

DaBears — Thu, 14 Mar 2013 12:36:04 GMT

@Rain77 wrote:
Have you contacted the CA you paid to see if they notified Citibank of payment? Did the CA send a letter stating you paid?

If the OC sold the CO to the CA, The CA doesn't have to send the OC nothing in regards to the paid collection. The OC can still report their TL as such.

Re: HUGE Problem with Charge-Off/Sold Acct.

Rain77 — Thu, 14 Mar 2013 12:43:23 GMT

@DaBears wrote:
@Rain77 wrote:
Have you contacted the CA you paid to see if they notified Citibank of payment? Did the CA send a letter stating you paid?
If the OC sold the CO to the CA, The CA doesn't have to send the OC nothing in regards to the paid collection. The OC can still report their TL as such.

But it seems like the account was placed for collection vs sold.

Re: HUGE Problem with Charge-Off/Sold Acct.

DaBears — Thu, 14 Mar 2013 12:51:28 GMT

@Rain77 wrote:
@DaBears wrote:
@Rain77 wrote:
Have you contacted the CA you paid to see if they notified Citibank of payment? Did the CA send a letter stating you paid?
If the OC sold the CO to the CA, The CA doesn't have to send the OC nothing in regards to the paid collection. The OC can still report their TL as such.
But it seems like the account was placed for collection vs sold.

Rain, you will be correct.....I need more coffee. LOL

The CA should have notifed the OC of payment received and the OC would have to update their TL to reflect as such.

Re: HUGE Problem with Charge-Off/Sold Acct.

Rain77 — Thu, 14 Mar 2013 13:02:51 GMT

@DaBears wrote:
@Rain77 wrote:
@DaBears wrote:
@Rain77 wrote:
Have you contacted the CA you paid to see if they notified Citibank of payment? Did the CA send a letter stating you paid?
If the OC sold the CO to the CA, The CA doesn't have to send the OC nothing in regards to the paid collection. The OC can still report their TL as such.
But it seems like the account was placed for collection vs sold.
Rain, you will be correct.....I need more coffee. LOL

The CA should have notifed the OC of payment received and the OC would have to update their TL to reflect as such.

LOL. Well reading back, you could also be correct. I'm looking at my old reports since I had a similar issue with transferred/sold and OC not updating and showing a balance on an acct I paid thru a CA 2 years prior. When I disputed the account it was updated as sold/ PIF/ was a CO bal $0.

Re: HUGE Problem with Charge-Off/Sold Acct.

DaBears — Thu, 14 Mar 2013 13:04:54 GMT

See

My cup of Joe is working good this morning!!!!

Re: HUGE Problem with Charge-Off/Sold Acct.

Shogun — Thu, 14 Mar 2013 13:18:32 GMT

Drink an extra cup just to make sure.

Re: HUGE Problem with Charge-Off/Sold Acct.

DaBears — Thu, 14 Mar 2013 13:20:15 GMT

I don't want my neighbors seeing me tweaking outside

Re: HUGE Problem with Charge-Off/Sold Acct.

Kevin5974 — Thu, 14 Mar 2013 15:18:53 GMT

This is exactly what I am looking for. The CA doesn't care to contact CitiBank since they own the debt. I need Citi to update to show PIF/CO with a $0. I am submitting a complaint with the BBB today!

Re: HUGE Problem with Charge-Off/Sold Acct.

Anonymous — Thu, 14 Mar 2013 19:02:44 GMT

@Kevin5974 wrote:
This is exactly what I am looking for. The CA doesn't care to contact CitiBank since they own the debt. I need Citi to update to show PIF/CO with a $0. I am submitting a complaint with the BBB today!

You can also file a direct dispute with Citi under FCRA 623(a)(8). As the furnisher of information they are required to investigate, make changes and/or deletions and notify you within 30 days. They have to do this or the are in violation of federal laws.

Re: HUGE Problem with Charge-Off/Sold Acct.

RobertEG — Thu, 14 Mar 2013 19:11:08 GMT

The debt collector does not have to notify the OC of payment. The OC is out of the picture once they sell the debt.

The moment the OC sold the debt, they were required to have reported a $0 balance to the CRA.

They thereafter have no dog in the hunt.

Getting the OC to update based on payment to the debt collector is not the way to resolve the matter. Any dispute should be based simply on their failure to have complied with section 623(a)(2), which is the reqirement for timely update of information so as to maintain its accuracy.

Re: HUGE Problem with Charge-Off/Sold Acct.

Kevin5974 — Tue, 19 Mar 2013 20:48:58 GMT

Well I sent a nice professional complaint via CFPB and essentially apologized for neglecting my responsibilities in having this account charge off. I did however, inform them that I have been burdened with higher interest rates and have had trouble obtaining new credit due to their erroneous reporting. I imagined it was an oversight, albeit egregious, and mentioned I thought deleting the tradeline would be best for both parties. Citibank acknowledged selling the debt in 2010 but did not apologize or admit fault. They did however, agree to delete the tradeline

Re: HUGE Problem with Charge-Off/Sold Acct.

Rain77 — Wed, 20 Mar 2013 00:10:58 GMT

Nice!