Isn't this illegal

[Anonymous]

I had a sear account that I placed in a debt management plan. The account was never late or anything like that. I only did it to pay down the account and saved my credit, bacause the payments were lower.

Three months ago, I dropped the account (Sears) from the DMP and PIF. The account, all this time, was reporting as "Paid as Agreed". As soon as my last payment posted Sears reported a zero balance (thank you very much), but also reported it as a Collection Account  with a DOFD as 4-12-12. This is blowing my mind. I know that they are in violation of re-aging but cannot find the statue/law  to add to the letter that I am writing them now for their dirty deed. I'm so upset right now.

Could someone confirms that this is indeed a naughty deed on Sears part. Please also post the statue that they are violating too. Thank you!

[llecs]

Was it a CO prior to including it into the DMP?

[pizzadude]

Can you clarify exactly what happened ?   I'm just speculating, but perhaps when you dropped out of the DMP, then it immediately turned your balance into a collection.

Did you PIF before you dropped out of DMP or after ?   And how did you drop out, did you miss a payment, or just send a full payment in for the outstanding balance ?

[Anonymous]

I made two payments ahead of time prior to cancelling with the DMP. I called the debt management company and asked them to cancel me out of the DMP. Once I realized that I was out of the DMP, I called Sears and PIF. I'm confused how the account could go from pays as agreed to collection account, when I was never late before entering into the DMP and after cancelling out of the program. I just sent Sears a letter asking for clarification or deletion of the negative remarks. Will update!

[pizzadude]

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@Anonymous wrote:

I made two payments ahead of time prior to cancelling with the DMP. I called the debt management company and asked them to cancel me out of the DMP. Once I realized that I was out of the DMP, I called Sears and PIF. I'm confused how the account could go from pays as agreed to collection account, when I was never late before entering into the DMP and after cancelling out of the program. I just sent Sears a letter asking for clarification or deletion of the negative remarks. Will update!

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I would think that anytime someone cancels a DMP that the creditor is likely to immediately CO and start collection activities.    I'm guessing that is what happened here.    Why exactly did you cancel ?

[suebee123]

There is another thread on this site dealing with this exact problem.  Happened to me and many others in Feb of 2012.  Had accounts that were in DMP at one time or another and were reporting as positive tradeliines, and all of a sudden in Feb they were updated to Collection accounts.  After many complaints to Citibank, found out they were attempting to change the reporting on DMP accounts, after the fact, must have had alot of complaints, and have switched back to the original reporting.  Most of us have got out accounts corrected.

Dispute...the account explaining it was never a collection, and they should correct it.

[suebee123]

The previous thread was:     citicard paid off now reporting wrong

Hope this helps.

[Anonymous]

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@suebee123 wrote:

The previous thread was:     citicard paid off now reporting wrong

Hope this helps.

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Ah ha! This is exactly what they'rre trying to do to me too. This is so wrong on may levels. I was not never late with the stupid account. I'll never shop at Sears again, if they don't correct this $%#!. I will also make sure that my extended family do not spend money again there too. A deal is a deal. You cannot change your words once account is PIF and report whatever you want to. 

How did you find out when they change the ststus back to positive reporting...via telephone, letter or through the results of your online dispute?

Look at the perfect account payment history below (copied from Equifax)

SEARS/CBNA

PO Box 6282
Sioux Falls, SD-571176282
 

Account Number:	XXXXXXXXXXXXXXX	Status:	COLLECTION ACCOUNT
Account Owner:	Individual Account.	High Credit:	$3,138
Type of Account :	Revolving	Credit Limit:	$5,000
Term Duration:		Terms Frequency:	Monthly (due every month)
Date Opened:	02/2006	Balance:	$0
Date Reported:	04/2012	Amount Past Due:
Date of Last Payment:	03/2012	Actual Payment Amount:
Scheduled Payment Amount:		Date of Last Activity:	N/A
Date Major Delinquency First Reported:	04/2012	Months Reviewed:	74
Creditor Classification:		Activity Designator:	N/A
Charge Off Amount:		Deferred Payment Start Date:
Balloon Payment Amount:		Balloon Payment Date:
Date Closed:		Type of Loan:	Charge Account
Date of First Delinquency:	03/2012
Comments:	Paid collection,  Account closed by credit grantor

81-Month Payment History

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[suebee123]

You should dispute with credit bureau but also call Citi/Sears and explain what happened, they probably got tons of calls and they may be able to correct this sooner than the CRA.    I disputed with EQ and TU, they were the only ones affected.  EQ already came off, still waiting for TU.  I received a Alert from my EQ monitoring say the account status changed to "paid as agreed".

It was obviously a reporting error on Citi's part...don't stop till they remove it. 

[suebee123]

I believe that about 200,000 Citi customers were affected by this change...so they should know how to fix it by now.