topic Re: Advice needed on a collected debt and interest in Rebuilding Your Credit

Advice needed on a collected debt and interest

willuw — Thu, 07 Feb 2013 01:56:12 GMT

Hi Everyone,

First post here, have been reading and learning a lot and I am dedicated to greatly improving my score now.

The question is this. I had an $8,000 bank of american account show up on my credit report as past due that was not correct. I disputed this with experian and they changed it to show that bank of america Closed and written off in full.

Now I have a new entry in my experian report from a collection agency for the same account - except now it is listed as current - and the balance is not $8,113 but over $15,000!!!!!

The details on it also say: This account is scheduled to continue on record until Jun 2014. This item was updated from our processing of your dispute in Jul 2012.

It looks like - since April or May of 012 they have beeen reporting this as current every couple of months (yet, the original account says closed and written off).

What would you recommend I do about this since it is obviously now an even larger account! Can they almost double the collection account? Does not seem legal to me to almost double the amount in less then a year of taking the account..

Any advice would be greatly appreciated.

Thank you

Re: Advice needed on a collected debt and interest

Shogun — Thu, 07 Feb 2013 02:33:12 GMT

Was the original debt yours? Why did you dispute it? The adding of fees and interest would have to do with what was in the OC's agreement with you and the laws of your state. What is the SOL of your state? Is it past the SOL?

Re: Advice needed on a collected debt and interest

willuw — Thu, 07 Feb 2013 02:38:02 GMT

Hi,

I never had an 8000$ balance with bank of america - I have tried disputing it with them direct but it was useless and it got nowhere.

I disputed it - because it was not a valid balance.

The account was originally in Texas but I now live in Florida since 2007.

If BOA wrote off the balance of $8000 - is it legal to almost double the balance by this debt collector?

The debt collector has not even contacted me ever and I have never received anything from either BOA or the collector.

This has got to be really hurting my score since now the debt collector is reporting a $15,000 current balance every month (last report was Jan 2013)

I don't know what to do...

Re: Advice needed on a collected debt and interest

Shogun — Thu, 07 Feb 2013 02:43:36 GMT

If the origianal agreement with BOA allows it, and the laws of your state "some states have limits to interests and fees and some don't", then yes, they can. What you need to do is research the laws of your state now, what are they in Florida? I think Texas is 4 years across the board so you're good there.

Re: Advice needed on a collected debt and interest

Shogun — Thu, 07 Feb 2013 02:45:55 GMT

Looks like Florida is 4 years open ended and 5 years written.

Re: Advice needed on a collected debt and interest

willuw — Thu, 07 Feb 2013 02:50:09 GMT

But how is this calculated? On experience it says BOA wrote off the account in jan 2012. TU and EQ show BOA of writing it off in 2007-2008.

The all seem to agree that the CA took control January 2012. Which dates does it go by? BOA doesn't seem to know anything and is a mess..

Re: Advice needed on a collected debt and interest

Shogun — Thu, 07 Feb 2013 03:08:57 GMT

@willuw wrote:
But how is this calculated? On experience it says BOA wrote off the account in jan 2012. TU and EQ show BOA of writing it off in 2007-2008.

The all seem to agree that the CA took control January 2012. Which dates does it go by? BOA doesn't seem to know anything and is a mess..

That is no surprise. Who is the CA that is jacking the amount up so much?

Re: Advice needed on a collected debt and interest

willuw — Thu, 07 Feb 2013 03:12:37 GMT

Calvary Portfolio Service is the CA - and I have never heard one word from them.

It just doesn't seem write that they can almost double the amount that was written off. If my calculation is correct - that averages out to adding over $600/mo in fees/interest since they obtained the account....

The worst part is they are reporting it as current so it has got to be really hurting my score

Re: Advice needed on a collected debt and interest

willuw — Thu, 07 Feb 2013 03:23:22 GMT

Correct me if I am wrong, but I see every state has maximum interest they can charge, looks like collection agency is in Arizoa - could not find a rate for them.

I also read that the card member agreement trumps state - is this the case? I looked online and it seemed the max APR in BOA agreement is 29.99% APR..

If this is the case, and if my math is correct....

The CA has not even had the account a year - but even if they did the itnerest would only add up to about $10K..Nowhere near the claimed 15k...

Re: Advice needed on a collected debt and interest

Anonymous — Thu, 07 Feb 2013 03:24:59 GMT

It depends on the state how it is calculated.

If the CA just bought or was assigned the debt in 2012, almost double is a lot of money in interest. I wouldn't even know if they could legally add back interest to a debt.

Re: Advice needed on a collected debt and interest

willuw — Thu, 07 Feb 2013 03:29:14 GMT

I am so at a loss at what to do...

This is really the only "negative" on my credit reports other then high utilization which I am paying down...

But it's a big one, with $15,000 and probably growing every month as a current debt

Re: Advice needed on a collected debt and interest

Anonymous — Thu, 07 Feb 2013 03:32:55 GMT

Contact BoA and talk to them. Find out what is going on and why they say the balance is so much.

Re: Advice needed on a collected debt and interest

willuw — Thu, 07 Feb 2013 03:37:12 GMT

I have fought with BOA for many months over this (before it was magically $15K)

They would not provide any details as it was a wrote off account and would only give me the name of the agency they sold it to. I fought with branch managers at several locations, many hours on the phone, and letters that rarely got responded to.

This is why I disputed with the credit bureaus since BOA could not justify the balance. Yet, the only thing the dispute did is showed BOA closed and wrote off the account and made a new entry in all of my credit reports of the account with the CA and the new $15k balance

Re: Advice needed on a collected debt and interest

Anonymous — Thu, 07 Feb 2013 03:45:25 GMT

File a direct dispute under FCRA 623(a)(8). This puts the furnisher of the information in the hot seat to investigate the dispute. They have up to 30 days to notify you directly of the outcome.

Provide as much information as you can, cancelled checks, statements, etc. What ever you have to support your claim. Also ask for an accounting breakdown of what they say you owe.

Re: Advice needed on a collected debt and interest

willuw — Thu, 07 Feb 2013 03:48:32 GMT

File a direct dispute with who? The CA or BOA?

Unfortunately I have little documentation regarding this as I paid the card in full and closed it in 2006. I moved and never heard anything regarding this until years later...

Re: Advice needed on a collected debt and interest

Anonymous — Thu, 07 Feb 2013 03:50:09 GMT

Send it to BoA.

Tell them in the dispute it was closed in 2006 and you never heard anything else.

Re: Advice needed on a collected debt and interest

willuw — Thu, 07 Feb 2013 04:02:56 GMT

I already filed a dispute with them a while back and the only information they would ever release is that they wrote the account off for $8000~ to the CA. It was like banging my head against the wall dealing with BOA..Months of fighting with them got 0 progress.

Re: Advice needed on a collected debt and interest

Anonymous — Thu, 07 Feb 2013 05:23:17 GMT

Do one under the FCRA 623(a)(8). They won't be able to get off that easy.

Re: Advice needed on a collected debt and interest

willuw — Thu, 07 Feb 2013 05:26:32 GMT

How exactly do I file it under the FCRA? I googled that but did not see anything that looked like what I need.

Should I not file something against the debt collector since they are the main issue right now reporting a hugely inflated debt as current? I am pretty sure they have illegaly added interest or fees to the account since it's doubled in size in 10 months..

Re: Advice needed on a collected debt and interest

Anonymous — Thu, 07 Feb 2013 05:43:03 GMT

You said you never owed BoA $8000. If the CA is charging interest on an $8000 debt you never owed, I'd say it started with BoA.

You can ask the CA for an accounting of the debt; principal, interest and how it was calculated.