Charge off with inaccurate information

[Anonymous]

I was looking at a charge off that is on my credit report. I kept looking at the numbers and they didn’t seem right to me. It seemed as though the charge off amount was much more than even the original debt. So today I called the OC and asked for a statement of the account, which they emailed to me and LOW AND BEHOLD, the amount that they charged off is about $3K LESS than what they reported. Ultimately, I would LOVE for the account to be deleted for inaccuracy, but I know that if I dispute it, they can simply correct the error.

I’ve been told to write the credit bureaus and ask for them to verify the account...but I’m not sure how that action serves my purpose.

What type of dispute letter should I write to best attack the situation?

Secondly, The collection agency is also misreporting by about $600. I don’t want to awaken the sleeping beast because I’m not in a position to settle just yet...

Does anyone have any advise as to the best method to attack these 2 issues?

thanks

[gdale6]

They can continue to increase the amount owed with interest and fees over and above the statement charge off amount. I bet this is updating monthly with the increase amount reported each time. If you are not ready to deal with the problem then I would suggest you just let sleeping dogs lie until such time as you can deal with them.

[Anonymous]

I thought that the charge off doesn't allow for them to continue to accrue interest and if the statement of the account dates for yesterday states that the balance is 3k less...how can that be (still accruing interest)?
I agree with the sleeping dog thing...I have some saving to do...

[gdale6]

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@Anonymous wrote:
I thought that the charge off doesn't allow for them to continue to accrue interest and if the statement of the account dates for yesterday states that the balance is 3k less...how can that be (still accruing interest)?
I agree with the sleeping dog thing...I have some saving to do...

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The action of CO is just an accounting maneuver taken at a moment in time, it does not preclude the OC or the collector from adding interest and any other fees that maybe allowed by the contract. Usually the would only add interest but some do fees too.

[Anonymous]

When looking at the ledger, it doesn't look like interest. It looks like they misreported. I think I need to take this to my lawyer because its definitely an error on their part. If they were still charging interest, which is not shown on the ledger nor reflected on my credit report...that's a problem...

[RobertEG]

Taking of a charge-off does NOT terminate the continued accrual of interest or other late fees.

The consumer remains responsible for the entire debt, and if the contract creating the debt provides for accrual of interest, then it can continue after the delinquent debt has been charged to profit and loss in their accounting books.

There are situations where a creditor will discontinue accrual of interest after taking a CO, but they are not normally required to do so simply because of a CO.

If you have basis for showing that they are adding amounts that are contrary to your account agreement, you can always file a dispute with the CRA under FCRA 611, challenging the accuracy of the current debt balance.  However, simply stating that it is precluded by the fact that they have taken a charge-off will not support your dispute.

Even if the debt balance is not accurate, the creditor can simply correct any inaccuracy without any requirment to delete anything.

A dispute only applies to verification or correction of the accuracy of the specific item under dispute, and wont require deletion of any reporting of a delinquent debt or the charge-off.

They can always correct any inaccuracy in response to a dispute without any need to delete.

You might wish to informally contact them for clarification before filing a confrontational dispute, as you may wish to rely upon their good-will in resolving the matter, such as by offering a payment for only the amount you consider reasonable, or by offering a pay for deletion.

Referral to a lawyer infers taking of some civil action, which is not permitted under FCRA 623(c) until you have first filed a dispute and received verification of accuracy.  At the least, I would advise filing a formal dispute before having an attorney contact them regarding potential civil action.

[Anonymous]

Thank you for your response. The inference of my lawyer is to discuss the legality of misconduct reporting.
I've been informed by others to request verification, but I can't see the point in it, hence why I posted for clarification.
I can fish out the original contract to see if the accrual of income after charge off is something that I agreed to, but what I'm trying to say is that the statement that I recieved is a line by line account of payments and debits and each are labeled NONE of them are labeled as interest and the ending balance in the account is $0 with a note that says account sold. Last Amount due on the account is round $7500, but it's being reported as $11,300 on my report. When I've reached out for advice in the subject of getting the charge off deleted, I've been told to "verify with the CRA", then "request documents that support the verification" and when the documents don't match the records that I have on file (which come directly from the creditor), request deletion. OR "Find a mistake and dispute it"
I'm trying to find a clear cut way to attack this and still have no answers. Have you had any experience with this?
Side bar-The collection agency is all over the place, they report a balance due of $8100 and a DOFD that's 3 years later than the OC. They keep having sub agencies try to collect the debt as opposed to contacting me themselves. I've sued 2 of the 3 sub agencies and won both times. I just don't want to approach them directly until I have enough money to settle if it comes to that...