So I discharged from chapter 7 BK last year. Did all the disputes, etc with the CRA's so that everything showed as IIB. Only problem of course was HSBC, I send CMRR to the 3 CRA's with BK discharge papers, etc. A few weeks later success! All HSBC accounts now show IIB on all three CRA's. Well fast forward ... this week I get a SW alert that my score has dropped because of an account change and what do you know, HSBC is again reporting as CO/Transferred or Sold! 
I fax a dispute to Equifax complete with BK papers and the next day I receive an update that the status has been verified as CO/Transferred or Sold. Today I called Equifax's dispute department and after dealing with a woman who was clearly reading from a script, I got a supervisor.
The supervisor said that even though HSBC was listed in my bankruptcy, because the debt was charged off and sold before the BK was filed, it is being reported correctly. I discussed this with her for an hour citing the BK laws, etc but she would not budge and just offered to dispute it again with HSBC. She said that although HSBC does not own the account, they can still update the TL! What? Is this correct? What point will it serve to dispute if HSBC will come back and "verify"? What can I do? Can I sue? File a complaint somewhere? Any ideas, please let me know? I've really worked hard on my credit clean up so this is definitely a downer. 
Thanks for any responses.
I am curious about this one as well.
@mja wrote:So I discharged from chapter 7 BK last year. Did all the disputes, etc with the CRA's so that everything showed as IIB. Only problem of course was HSBC, I send CMRR to the 3 CRA's with BK discharge papers, etc. A few weeks later success! All HSBC accounts now show IIB on all three CRA's. Well fast forward ... this week I get a SW alert that my score has dropped because of an account change and what do you know, HSBC is again reporting as CO/Transferred or Sold!
The supervisor said that even though HSBC was listed in my bankruptcy, because the debt was charged off and sold before the BK was filed, it is being reported correctly. I discussed this with her for an hour citing the BK laws, etc but she would not budge and just offered to dispute it again with HSBC. She said that although HSBC does not own the account, they can still update the TL! What? Is this correct? What point will it serve to dispute if HSBC will come back and "verify"? What can I do? Can I sue? File a complaint somewhere? Any ideas, please let me know? I've really worked hard on my credit clean up so this is definitely a downer.
Thanks for any responses.
I would file a formal complaint with the FTC and state your reason. All a charge-off is an internal bookkeeping measure for the OC, tax purposes. Once the account listed in a Chapter 7 BK they are no longer to update the TL or do anything with the account. If you filed with an attorney I would contact him and let him know they have violated the automatic stay. Best of luck.
You might not have grounds to file a complaint. A "Charge Off" is considered a final accounting event. Including it in BK does not change that fact. They are not obligated to change the account status because a final reporting event has taken place. The only thing your BK obligates them to do is ensure the balance is reported correctly. So they can report "Charge Off" and your balance due will be Zero, CL Zero.
DaBears is right, they can't update a tradeline except in response to a dispute. They also aren't obligated to change the "status" as Charge Off to IIb. I wouldn't focus to much on this. I would make sure balances are zero and fight collections. I gave up on trying to change some of my accounts after numerous CMMRs. I have almost 20K in credit cards. 2 Autoloans 11 months later.
Expend your energy elsewhere IMHO.
Starting Score: 501I know I Am not the OP, but thank yall for the clarification....
OK so you're not going to believe this .... I get a SW alert a few moments ago that an account has been updated. I check and what do you know, the HSBC accounts are now showing IIB. Hooray right? Guess what .... my score didn't go back up! So what gives? I guess I should just take shols44's advise and move on. Thanks for all the comments.
@guiness56 wrote:
@shols44 wrote:You might not have grounds to file a complaint. A "Charge Off" is considered a final accounting event. Including it in BK does not change that fact. They are not obligated to change the account status because a final reporting event has taken place. The only thing your BK obligates them to do is ensure the balance is reported correctly. So they can report "Charge Off" and your balance due will be Zero, CL Zero.
DaBears is right, they can't update a tradeline except in response to a dispute. They also aren't obligated to change the "status" as Charge Off to IIb. I wouldn't focus to much on this. I would make sure balances are zero and fight collections. I gave up on trying to change some of my accounts after numerous CMMRs. I have almost 20K in credit cards. 2 Autoloans 11 months later.
Expend your energy elsewhere IMHO.
Yes they are. The TL has to show IIB.
I disagree. If the charge off occured prior to the BK they are not obligated to do anything. The Charge Off zeros out the account, infact they can claim there is no balance to forgive and have no reason to nor are they obligated to IIb the account. AFAIK, final reporting events e.g CO can remain as they are.
I had this same issue with hsbc. I went through supervisors at there company and the cra. I finally contacted my bankruptcy attorney and he reviewedthe situation and confirmed...they are reporting accurately. The account was charged off and sold before the bankruptcy so they are within there reporting rights to report for 7 yrs from the dofd. I spent many hours on different days fighting them only to be told by the attorney that they were right...errrrr.
Two years later the account is still there reporting co sold transferred but its not really affected my ability to rebuild. I hope this info is helpful!
Two years later the account is still there reporting co sold transferred but its not really affected my ability to rebuild. I hope this info is helpful!
Starting Score: 530