topic Re: Charged Off account -What to do in Rebuilding Your Credit

Charged Off account -What to do

Anonymous — Tue, 28 Nov 2017 20:16:42 GMT

Hello all , looking for some advise.

I have perfect credit other than one lender. So Long story short, I am joint on a home equity loan with my ex. My ex shortly after we split up filed for bankruptcy. I attended all meetings to make sure I'm financially sound. All was good, but shortly after a local bank would we have/had a home equity line and I had spoken to. I assumed responsibility on the payments as well. The loan is for 6yrs, there has never been a single payment late. Before and after her bankruptcy. The bank decided to "Charge Off" the account, this is leaving serious negatives on my credit score, I went from high 700's to mid 600's and no matter what I do I can't get it any higher due to this negetive. If you go into the actual credit report, example experian it says every month is "failed to pay", if you go into comments on the lender its says "paid on-time every month" and continues to update with a new date every month and the loan amount goes down month after month just as it did before the "charge off" status. If I go to file a dispute, it wont let me because it says payments are on-time, although if you look at the graph outline its says payments are "failed to pay". I've spoken to the bank about this for about the last 8 months, i'm getting no where with them, they refuse to do any kind of credit modification. More or less they told me to many hands are in this pot at the bank(the loan paperwork) and that it is "to tasking" for them to go in every month and modify that I am on-time. They also refused to remove the charge-off. They did offer a letter of good faith, which I took incase i need to send to the credit bureaus. Also they did speak to me about making a settlement.

Any advise would be appreciated, just at a ends here. I'm getting delinquencies for something I have never made a mistake on.

Re: Charged Off account -What to do

RobertEG — Tue, 28 Nov 2017 23:25:00 GMT

A debt is not chargeable to profit and loss unless it has become delinquent under the terms of the account agreement.

"Failed to pay" is a delinquency status, and thus is inaccurate if you were not delinquent.

A creditor is under a statutory requirement to promptly update any information as necessary to maintain its current accuracy.

They cannot decline to correct based on any assertion that it is too much trouble.

I would first file a dispute with the CRA under FCRA 611(a) based on their failure to comply with FCRA 623(a)(2), which will require their investigation and response within 30'ish days.

If they verify, the dispute will then provide basis for you to bring your own civil action asserting a lack of reasonable investigation of your dispute.

You could also or optionally file a formal complaint with the CFPB for their willful violation of FCRA 623(a)(2).

"FCRA 623(a)(2) Duty to correct and update information. A person who

regularly and in the ordinary course of business furnishes information to one or more consumer reporting agencies about the person’s transactions or experiences with any consumer; and

has furnished to a consumer reporting agency information that the person determines is not complete or accurate, shall

promptly notify the consumer reporting agency of that determination and provide to the agency any corrections to that information, or any additional information, that is necessary to make the information provided by the person to the agency complete and accurate, and shall not thereafter furnish to the agency any of the information that remains not complete or accurate."

Re: Charged Off account -What to do

Anonymous — Wed, 29 Nov 2017 03:28:03 GMT

Thanks, I'm going to print this, do some more research and present it to the branch. I found a "Chief Financial Officer" on the excutive branch that is local, rest are in a neighboring state. I think I'll pay him a visit.

Re: Charged Off account -What to do

Anonymous — Wed, 29 Nov 2017 03:34:18 GMT

Also side note, so i got a alert on my credit report first week of November this year. The bank changed my reporting address to theres. I approached them about this and they said this was because they made a mistake and sent one of my reciepts to my ex and under terms of a bankruptcy they are not allow to contact her because its against the law. So to simplfy things and not to have that "computer" error again they changed my address. On my credit report is says this is a high risk address due to it being a business, my credit went from 672 in october to 634 in middle of Nov. I can't find any other reason that it dropped, debt didn't go up, payments are always on-time..etc.

all around this is a giant mess.