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Need Some Advice

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Need Some Advice

Hi,
I'm about to dispute a collection on my credit report but I am a little confused.
I'm disputing an American Web Loan from 2012 (in collections with Midwest Recovery Systems).
The initial loan amount was for $600, but now it shows a balance of $1860 (%300 interest). I wasn't
aware of this interest rate when I signed, as AWL said all details would be sent after I was approved.

If I file a dispute with the CRA should I ask for "debt validation" or should I cite how the loan is illegal
because it is a predatory loan charging an unreasonable interest rate, and is unlicensed in California?

Or, should I just file a complaint with the CFPB?

Which route is the best for my situation?

Thanks for any advice

Message 1 of 6
5 REPLIES 5
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Moderator

Re: Need Some Advice


@b52_bomber wrote:

Hi,
I'm about to dispute a collection on my credit report but I am a little confused.
I'm disputing an American Web Loan from 2012 (in collections with Midwest Recovery Systems).
The initial loan amount was for $600, but now it shows a balance of $1860 (%300 interest). I wasn't
aware of this interest rate when I signed, as AWL said all details would be sent after I was approved.

If I file a dispute with the CRA should I ask for "debt validation" or should I cite how the loan is illegal
because it is a predatory loan charging an unreasonable interest rate, and is unlicensed in California?

Or, should I just file a complaint with the CFPB?

Which route is the best for my situation?

Thanks for any advice


Before you dispute anything you first need to know the DoFD of the account and whether this is updating monthly. Debt validation isnt something you would ask a CRA for that is used when a collection agency is involved and in most states its only valid in the first 30 days of a collector obtaining a collection. You can post the DoFD and whether its updating monthly for the course to take if it is. I dont know who these people are but if they are payday lenders you are going to want to check and see if they were involved with the settlement on illegal online payday loans if so there are other remedies available to you as well.

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne

Message 2 of 6
New Member

Re: Need Some Advice


Thanks for the reply. I managed to find the DOFD date from a prior 2018 Transunion report....it is 1/10/2013. I can't tell if it's updating
because any new credit report I see doesn't show the DOFD on it for this collection. What would you advise?

I understand what you are saying about the payday lenders and will definitely look into the settlement regarding illegal online payday loans.

Thanks again

Message 3 of 6
Highlighted
Moderator

Re: Need Some Advice


@b52_bomber wrote:


Thanks for the reply. I managed to find the DOFD date from a prior 2018 Transunion report....it is 1/10/2013. I can't tell if it's updating
because any new credit report I see doesn't show the DOFD on it for this collection. What would you advise?

I understand what you are saying about the payday lenders and will definitely look into the settlement regarding illegal online payday loans.

Thanks again


Be sure to keep that report that clearly shows the DoFD. I would first see if they were involved in that settlement if they are then make a demand that they remove the TL from your CRs and if they dont then you can take your case to the states AG.

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne

Message 4 of 6
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Legendary Contributor

Re: Need Some Advice

There are both federal and state laws governing required disclosure to consumers of terms of loan contracts.

If they did not provide you the required statutory or regulatory notices as part of the transaction, you have basis for contesting the transaction.

 

You need to consult an attorney for legal advise on how to proceed.  I would not attempt to handle yourself.

Message 5 of 6
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New Member

Re: Need Some Advice

O.k. got it. 

 

Thanks to all for your advice on this....

Message 6 of 6
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