Pay for delete confusion?

Anonymous · ‎12-18-2018

My husband and I would like to try and purchase a home next March. We do have a 4 year old reposession that is reporting burial it is out of the SOL. The lender is reporting $12,000 one one report and $8,000 on the other. We have disputed to verify amount but it somehow comes back on both as accurate. Should we contact for a PFD? Do lenders usually require the full balance? Or partial?

bass_playr · ‎12-19-2018

Hi,

There are some things to figure out first. For example, who currently owns the debt? It's common for auto lenders to sell off some delinquent debts, so yours may or may not be owned still by the party that reported on your credit. Before you look to make any offer to anyone regarding paying off a debt, you need to mak sure you're talking to the right entity.

Second, you mentioned that there are different balances showing on the different reports. Are they both being updated regularly? Check through the three reports and note every single difference in how they are reporting. The differences could be due to different updating times, or simple error, or negligent mistake. You need to know all of this because you might end up with some serious leverage on your side if you follow the correct steps. The FCRA is the law that governs credit reporting. Violations of the FCRA--ONLY if addressed properly--are up to $1,000 PER VIOLATION. So, if you find, for example, 9 total violations, that's $9,000 in potential statutory damages right there.

It's always best to know exactly how much leverage you really do have, in case you need to use it.

Also, would you mind sharing with us who the creditor is? Different creditors have different tendencies. Some of them won't even consider a PFD, while some others are more willing.

Anonymous · ‎12-20-2018

Sure! The original creditor was Central Ohio Credit Corp and it now shows Tracir Financial. I believe they just changed their name? The balance owed on the vehicle was a little over $10,000. They said the car was sold at auction for $900. My husband co-signed for the vehicle. On on his EQ report it shows a charge off with a balance of $11,777. On his TU report it shows a charge of balance of $8,420. On my EQ report it shows a balance of $12,500 and on my TU report it shows a balance of $11,200. NOTHING matches. We have disputed through the bureaus several times but it always somehow comes back as accurate. They have not reported month since 2016 but ever 4 months or so, the balance owed changes. I have not personally heard from them since 2015.

RobertEG · ‎12-21-2018

FCRA 623(c) imposes a bar against private civil actions based directly on reporting of inaccurate information to a CRA.

However, it does permit private civil action once a consumer has disputed the accuracy, and the furnisher verifies back to the CRA.

The basis for civil action then becomes the reasonableness of their investigation of your dispute, as opposed to their having reported inaccurate information per se.

Since you have disputed and they have verified, and their verification found different amounts to each be accurate, they have essentially provided you with a near slam-dunk dispute of the reasonableness of their investigation, which found different factual values to each be accurate. They are also in violation of section 623(a)(2) by failing, once one amount was found to be accurate, to have promptly updated their reporting with each CRA to uniformly maintain the accuracy of their reporting. You should not have been required to dispute in order for them to have updated their reporting to uniformly maintain accuracy with each CRA of the same factual information.

I would consider seeking damages by filing a civil action under FCRA 623(c).

Anonymous · ‎01-01-2019

Robert, thank you so much for the information. How does one attempt to do so when it comes to seeking damages? Is this done through an attorney? Or do I need to send something directly to the creditor?