topic Re: Incorrect reporting or Correct Reporting? ((Help!)) in Rebuilding Your Credit

Incorrect reporting or Correct Reporting? ((Help!))

Anonymous — Mon, 04 Aug 2014 00:06:29 GMT

Greetings all,

I know this is a repeated topic, and have read a number of posts on this site, and others, about this topic. I am a bit perplexed because although it is lovely to get a lot of information, it can be rather overwhelming trying to sift through the facts and the opinions.

My husband and I are trying to figure out if a debt collection agency/Junk Debt Buyer is violating the FDCPA/FCRA's. This is his first time dealing with type of situation, and collection agencies in general. I have dealt with them to a certain degree, but am still ignorant to a lot of facts.

Here is the scenario:

We viewed two of his credit reports (TransUnion & Equifax), and saw that on his TransUnion CR, LVNV Funding LLC, along with Enhanced Recovery Company, under Adverse Accounts. Here is how they're reporting the information:

Enhanced Recovery Company #1234****

P.O. Box 57547

Jacksonville, FL 32241

(904) 680-2591

Placed for Collection: 12/26/2013 Balance: $200 Pay Status: In Collection

Date Updated: 02/09/2014

Responsibility: Individual Account Original Amount:$200

Account Type: Open Account Original Creditor: TMOBILE (Cable/Cellular

Loan Type: COLLECTION AGENCY/ATTORNEY

Past Due: $200

Remarks: PLACED FOR COLLECTION

Estimated month and year that this item will be removed: 7/2016

LVNV FUNDING LLC #1234567891234****

C/O RESURGENT CAPITAL SERVICESPO BOX 10497 MS 576

GREEVILLE, SC 29603

(866) 461-1183

Places for Collection: 08/30/2011 Balance: $2000 Pay Status: In Collection

Date Updated: 07/07/2014

Responsibility: Individual Account Original amount: $1,523

Account Type: Open Account Original Creditor: CAPITAL ONE BANK USA N A(Financial)

Loan Type: FACTORING Past Due: $2000

COMPANY

ACCOUNT

Remarks: PLACED FOR COLLECTION

Estimated month and year that this item will be removed:11/2015

The information that we have concerns about, have been bolded

We have been viewing a plethora of information about what is and isn't a Factoring Company, along with number of detailed examples. Our conclusion is, with all we've read, that LVNV is not a factoring company. We read on one site, the different "Account Types" there are, and what "Open Account" means

(less common to see on your credit report, and are for accounts that you must pay for in FULL each month, i.e. utilities) on a credit report.

With that being said, our question are:

Is LVNV FUNDING LLC misrepresenting itself by placing themselves as a "FACTORING COMPANY ACCOUNT" under loan type, and "Open Account" under account type (he hasn't used this account since, apprx, 2008/9), while the "Pay Status" and "Remarks" are indicating it is in/under collections?
Is ENHANCED RECOVERY COMPANY doing the same with stating the account as "OPEN ACCOUNT" (he hasn't had this account since, apprx, 2008/9) while they too are indicating under "Pay Status" and "Remarks" that it is under/in collections?

I am being so detailed in order to get a clear answer/advice on this situation. We are planning on sending a data validation letter, return receipt, in order to see what information these companies provide us. I know how slick these people can be, and am trying to make the best moves, since his credit score is on the line.

If there is any more information that is needed, please feel free to ask. We do appreciate your time, and advice in reference to this matter!!!!

Re: Incorrect reporting or Correct Reporting? ((Help!))

SusieQ — Mon, 04 Aug 2014 00:22:03 GMT

Was in a similar situation with Portfolio Recovery. Two things: 1. before you attack this problem, make sure the statute of limitations in your state has expired. 2. research your state law regarding the definition of a collection agency and debt buyers.

In my case, I waited for the SOL to expire, then went at them in full force. I live in NC, and they have clear laws regarding collection agencies and debt buyers - neither of which can represent themselves as original creditors as your two examples above indicate.

Bottom line, a collection agency cannot report a collection item under accounts, nor can they report late payments or referrals to collection. It is a violation of federal and more than likely your state laws.

Good luck and go get 'em.

Re: Incorrect reporting or Correct Reporting? ((Help!))

gdale6 — Mon, 04 Aug 2014 00:24:29 GMT

The Enhanced Recovery looks ok, if its yours call T Mobile ask them to recall the collection and settle with them directly. The LVNV may have a problem I would dispute the Factoring Company entry and if they are reporting a monthly payment history like an OC does (OK OK 30 60 90, etc) that is a direct violation of the law and I would file a CFPB complaint. LVNV appears to be reporting this monthly and thats going to keep the Fico depressed as it looks like a new collection in the eyes of Fico when it updates, its just one of the lovely tools these scumbags use to keep one down and make it harder to obtain credit. Both of these companies have to follow the OCs DoFD though and cannot report it any longer than the OC can.

Re: Incorrect reporting or Correct Reporting? ((Help!))

Anonymous — Mon, 04 Aug 2014 01:51:03 GMT

Thank you guys for replying...

I doubled check the statutes for New York State on three sites. It is six years across the board for old debts for four categorized types of contracts (written contracts, oral contracts, promissory notes) including open-ended accounts.

In reference to defining the mean of a "Debt Collector" in New York State, here is what I have found:

"(e) Debt collector means any person engaged in a business with the principal purpose of collecting or attempting to collect debts, or any person who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another. Debt collector includes without limitation a buyer of delinquent debt who seeks to collect such debt either directly or indirectly."

The statute of limitations has run out on the debt collector suing us, but we understand that it can start again. I am going to also contact CFPB about the matter.

I will keep you posted on what happens

Again, thank you for your insight I will check back for more comments

Re: Incorrect reporting or Correct Reporting? ((Help!))

SusieQ — Mon, 04 Aug 2014 02:07:08 GMT

If I am correct, you could pay the $200 and get it removed under the New York State 5 year purge rule. It mandates removal of a paid collection or charge off 5 years after the date of the original date of delinquency. Same for the other if you have the cash.

Re: Incorrect reporting or Correct Reporting? ((Help!))

Anonymous — Tue, 05 Aug 2014 16:49:06 GMT

Thanks Susie :-)

I found text on the New York State rules regarding debt collection yesterday, and will reviewing them. I will look for this information you have mentioned also. We are going to call Transunion today, and see what they have to say...

I did call CFPB yesterday, but the rep couldn't give me a definitive answer on if they're breaking a federal law. She did direct me to the web site to file a complaint, to which she indicated documentation can be submitted to show what we are inquiring about...

Will keep you posted ;-)

Re: Incorrect reporting or Correct Reporting? ((Help!))

Anonymous — Thu, 28 Aug 2014 22:34:50 GMT

UPDATE!!!!

We sent out two debt validation letters to the two collection agencies, and to much surprise, we received a letter from LVNV Funding LLC/Resurgent Capital Services (largest amount in debt) that "the referenced account has been closed." Additionally, they stated that "a request to delete the tradeline will be submitted to the three major consumer reporting agencies during the next reporting cycle."

I am going to research, of course, to see what our next course of action should be. Although, if anyone else has received such letter, please feel free to share what moves you made following this action.

Thanks!

Re: Incorrect reporting or Correct Reporting? ((Help!))

SusieQ — Fri, 29 Aug 2014 01:46:38 GMT

mine were similarly deleted after I pointed out their illegal reporting.

Re: Incorrect reporting or Correct Reporting? ((Help!))

Anonymous — Sat, 30 Aug 2014 20:14:45 GMT

@SusieQ wrote:
mine were similarly deleted after I pointed out their illegal reporting.

Thanks for your reply SusieQ!

Did you also contact the 3 credit reporting agencies on your own, after being let known that the debt collector(s) were going to delete?

Re: Incorrect reporting or Correct Reporting? ((Help!))

Burned2manybridgesB4 — Sat, 30 Aug 2014 17:15:51 GMT

@Anonymous wrote:
Thanks for your reply SusieQ!

Did you also contact the 3 credit reporting agencies on your own, after being let known that the debt collector(s) were going to delete?

FYI, expect it to take up to 60 days on average, for this CA to purge.

Re: Incorrect reporting or Correct Reporting? ((Help!))

Anonymous — Sat, 30 Aug 2014 20:15:01 GMT

@Burned2manybridgesB4 wrote:
@Anonymous wrote:
Thanks for your reply SusieQ!

Did you also contact the 3 credit reporting agencies on your own, after being let known that the debt collector(s) were going to delete?

FYI, expect it to take up to 60 days on average, for this CA to purge.

Thanks for the reply @Burned2manybridgesB4!

Would you think contacting the credit reporting agencies myself, and sending them (if allowed), the letter from LVNV would help speed up the process?

We are currently trying to rent a new apartment, and have gotten the snub nose from people/brokers, when I disclosed what his credit score was. The sooner that this negative tradeline is taken off, the better, especially if it will boost his score immensely!

Re: Incorrect reporting or Correct Reporting? ((Help!))

Burned2manybridgesB4 — Sat, 30 Aug 2014 20:16:32 GMT

There really is no way to make them push their removal faster, as the wheel is already in motion with the removal confirmation. Sixty day window, as there are people ahead of you, and data files needing to be purged.

Re: Incorrect reporting or Correct Reporting? ((Help!))

Anonymous — Sat, 30 Aug 2014 20:18:41 GMT

@Burned2manybridgesB4 wrote:
There really is no way to make them push their removal faster, as the wheel is already in motion with the removal confirmation. Sixty day window, as there are people ahead of you, and data files needing to be purged.

I see, thanks @Burned2manybridgesB4! I will post an update when moves are finalized.