CA playing tricks, need advice

[ciphyre]

Here is the story, my wife and I are buying a house. Get within one week of closing and when the finance company pulls my credit again, a new account shows up that is only on my Transunion. We have not had an account go into default or have been charged-off in 7 years and have not had anything new in collections in at least 6 years. All of which have either been paid/taken care of or taken off our credit report(s). So we have no outstanding collections.

The account is listed as a secured account with a date opened as 03/2003 and a date of last activity of 07/2003.

The listing shows that the account was charged-off placed for collections, but the account being listed on Transunion is from a CA not an OC.

Then in a matter of 2 days of discovering the account we get a letter from the CA. So I call the company and ask for the name listed on the letter. When I ask for the person, I am placed on hold. When the person I asked for picks up and states their name, I can distinctly tell that the person now on the phone is the same person who answered the call.

Since I have been trying to clean up my credit for some time I have read what to ask when you talk to the CA. I start to asked the standard questions, the what, where, how and why. When I ask how this person came up with the date the account was open, they explained it was the day they purchased the account,. I inform the person that this is illegal, that if this is indeed my account they have to list the date the account went into default and was charged-off. I also explain the SOL thing, and call them on trying to work around it by using a current date. I then state that I want them to validate the debt as being mine and we end the call.

While trying to identify who this CA is I go to the State Department of Corporations for the state the CA works in. Here not only do I find out the person listed as the account manager is the registered agent aka owner of the CA, but it's a family thing and both family memebers are listed as either VP's or Pres, or Director etc. The listing also gives me the PO Box listed on the letter, and what I can only assume is either the actual office address or possibly the home address.

So using the newly discovered info, I then write a DV letter to which I send CRRR to both addresses I have.

So here is the sneaky parts of this account outlined:

First the account lists as a closed installment account. The listing if from a CA so how could I have a secured installment account with a CA, they don't grant secured loans. Second, there is nothing listed on any credit reports that corresponds to this account, if they did buy it from an OC. If this is from another account it would still be listed somewhere. Even if it was from another account, if the other account isn't listed than it must mean that the reporting period is well over 7 years and the SOL has been exceeded. This means this account can't be reported anymore, which is probably why the CA used a date of 03/2003 for date opened. If the current CA purchased it from another CA they are probably trying to reset the clock on reporting/SOL.

So I don't know if this account is mine, I have disputed it (waiting on response), but it is obvious the CA is playing games trying to get money out of me. I think the CA watched my report saw a mortgage company checking me out and decided to try to pinch me.

What do you think? Any advice? What should I do when fighting this?

The one additional thing about this is that because I don't have time get it off my report before I close it might affect my closing. The underwriter didn't want any open collections. If I had 20 extra days, which I don't this would be removed I am sure. Any thoughts about what to do with the finance company that has already approved me and I have taken care of all other items needed in order to close? What do I need to stress to them if it becomes and issue?

Thanks!!!!!!!

[ghacorp]

What you describe is a typical problem with mortgage underwriters and client open collections. You may have to resolve the open collection in some way or seek another underwriter. Oftentimes the same company will write the mortgage, but with a higher APR. Are you by any chance in PA, NJ or DE?

P.S. Suggest that CA purchase a voice changer telephone so he/she can just press buttons to become someone else! Also, the SOL cannot be reset unless there has been payment activity or you admitted to owing the debt.

[ciphyre]

Well my loan officer waited until last week to pull my credit. This item was on there July 1st. If he would have done it than my dispute would have been done already.

I was pre-approved back in April, this is a new build and just got finished last week. I was told by my loan officer that 60 days prior to closing we would be doing this stuff, not 10 days!!!!

If you look at all my past CR's and they one the pulled back in April to approve me, not one item on the CR resembles this new one. It is almost obvious that this isn't mine.

Don't know for sure if this will affect the closing. I took care of all the other collection items listed as part of the approval letter conditions, this better not kill hte deal. If it does, my loan officer and the finance company are in as much trouble with me as this new CA is.

[retmar]

You already have them in violation of the FDCPA. Your statement that they used the date they purchased the debt for the date the account was open is an automatic violation. As a debt buyer, they are bound by the FDCPA. Many debt buyers believe that when they purchase, they are now the OC. That is not true and can be proven by contacting the FTC.

My advce to you is to send an immediate C&D to this ADUB. The main violation that you will cite is FCRA 605©. You can include FCRA (a)(4) also. In your letter you will state that if they don't close account, remove negative tradeline, not sell, transfer, or reassign to anyone else, and respond to you, in writing, within 5 days from receipt of your letter, they will be immediately named as a defendant in a civil suit. You also tell them you are filing a complaint with the AG of your state and the AG of their state, if different. You can also cite FDCPA 807(2)(A), (4), and (5). Read these sections yourself and you will see what they mean. Also, look through both sets of laws as you might find some more that apply. Do not ask for validation or anything. Get flat out nasty. Be sure to file the complaints. If you want, compose your letter, minus personal info, and post here. One or more of us will critique for you.

[LadynRed]

You might also ask if the amount for collection can be placed in escrow until the dispute is settled. Since there is a finite 30 days for the investigation you have a usable time frame. If it turns out, as you suspect, that the debt is NOT yours and it gets removed, you can then collect the money in escrow for yourself.

Did you request validation in writing ??

Have you disputed directly with TU ??

[ciphyre]

Yes, I sent the CA a letter on Monday CRRR. At the same time I did an online dispute with TU, but after reading some other threads, I think I should also go the route of a formal letter?

If I place the collection in escrow I have to come up with the entire funds required to settle the account, correct?

I am posting the letter I am sending to the CA per the response from retmar in another new response to this thread.. Let me know if this needs some tweaking???? Thanks.

[ciphyre]

My name

My address

My State

Dirtbag CA

P.O. Box 12345

Slimealley, NY 12345

08/06/03

Re: ID xxxxxxxxxxx

To whom it may concern,

This letter is being sent in order to inform you of my request for your agency to immediately cease and desist any collection activities for the above referenced account. This letter is by no means admission to the validity of the referenced account or a refusal to pay.

Your letter indicates this account is a collection account. FCRA 605 (a)(4) excludes from consumer reports any accounts placed for collection or charged to profit and loss, which antedate the report by more than seven years. By using the date your agency obtained this account as the date the account was opened instead of an actual date of default, your agency is in direct violation of FCRA 605©.

I believe in order to have this account put on my credit report; you have falsified the correct account opening date. Because of this your agency is in violation of FDCPA 807(2)(A) by falsely representing the character, and the legal status of this account and possibly 807(4) and (5) by inferring that further action will be taken if payment is not made.

I am also informing you that if your offices have reported invalidated information to any of the 3 major Credit Bureau’s (Equifax, Experian or Trans Union) this action might constitute fraud under both federal and State Laws. Due to this fact, if any negative mark is found on any of my credit reports by your agency, I will not hesitate in bringing legal action against you and your agency for the following:

Violation of the Fair Credit Reporting Act

Violation of the Fair Debt Collection Practices Act

Defamation of Character

I am requesting that your agency immediately close this account and remove any negative trade lines from any of the 3 major credit Bureaus. I am also requesting that your agency not sell, transfer, or reassign to anyone else, and respond to me, in writing, within 5 days from receipt of this letter, or I will immediately name your agency as a defendant in a civil suit.

At this time I am also filing a complaint with the Attorney General of the state of Illinois and the Attorney General of the state of Texas, for which you operate in, citing the violations previously identified.

I would also like to request, in writing that your offices make no further telephone contact to my home. If your offices continue to attempt telephone communication with me it will be considered harassment and I will have no choice but to file suit on this bases. All future communication with me MUST be done in writing and sent to the above address noted in this letter.

Best Regards

Your Worst Nightmare

[retmar]

Don't use ID#, use Account #.

Scratch paragraph #1 completely. Change to:

This is a demand for you to cease and desist any further collection activity on the above referenced account. You are attempting collection of a debt that is timebarred. As stated in the Code of Civil Procedures in my State of Illinois, the Statute of Limitations on a ------- ------ ---- account is XX years. Therefore, the original creditor, identified as -----, has no legal recourse to this debt.

Paragraph #2, Change to: You are reporting this on my credit files as a secured debt charged off to collection. Your letter indicates it is a colleciton account. As "Super ADUB" stated in our conversation of July 1, 2003, you are using the date to represent the opening date as the date you purchased the debt. This, in itself, is a direct violation of FCRA 605© as you are using a date other than the actual date of default. You are also in violation of FCRA 605(A)(4) for causing the reporting of this debt to the credit reporting agencies to antedate the seven year period for reporting collection accounts.

Paragraph #3 change to:

You are also in violation of FDCPA 807(2)(a) as you are misrepresenting the character and legal status of this debt. You have also violated FDCPA 807(4) and (5) as you are threatening to pursue further collection activity, which may include legal action, if I don't pay, knowing that you legally cannot do this.

Paragraph #5, change "requesting" to "demand" both times.

Paragraph #7, change "requesting" to demand".

You did quite well for being your first one. One thing to remember is that you want them on the defensive. They must prove to you, the court, and the AG, that the debt is within the SOL and belongs to you. You always want them to prove to you, not you to them.

Lady's idea is the best way to deal with this. Put the money in an escrow like she said. If you don't have the whole amount, see if the broker can add that amount to the loan, or if they will accept you adding so much a month to the account. And lastly, see what they would be willing to do to the loan while you get rid of the CA. Your whole purpose is to get the loan now. Figure it as a savings account as you will get it back when you finish your disputing.

[ciphyre]

Thanks for all advice and help. I have made the changes to the letter and will be sending it out.

As for the loan, keeping my fingers crossed! Suppose to close Friday at 1pm. Hope to hear something Thursday. We worked our butts off to get this far I hope they use some honest reasoning when they evaluate this new thorn in our sides!

I also contacted Edelman, Combs & Latturner, LLC about this after seeing their name in another thread. They asked me to forward them the info and they would review it at no charge. I sent them all I had this afternoon, so we will wait and see.

Next step is to contact the AG office for both states and go from there!

[retmar]

Good move. They will give you an honest reply. Trust everything they say.

[almost_there]

You already have them in violation of the FDCPA. Your statement that they used the date they purchased the debt for the date the account was open is an automatic violation. As a debt buyer, they are bound by the FDCPA. Many debt buyers believe that when they purchase, they are now the OC. That is not true and can be proven by contacting the FTC.

I have some CA's doing this on my credit reports and I thought it seemed fishy... I'll have to do some more research on this issue. Wow! The more credit repair I do, the deeper I dig, the more sh!t I find.

Edit....looking at old credit reports and such, I find that the place that lists DH's student loan 9 times reports our old local bank as the OC.

OC

Opened: 9/94

DOLA: 3/95

Pays as Agreed (it was sold before he was even supposed to make his 1st payment)

IA College Aid Comm OC: Local Bank

Opened : 11/97

DOLA: 11/97 (OMG! That should've been a red flag right there, same open and DOLA dates, guess I didn't look close enough before)

120 Days + past due

Any ideas? Don't mean to derail the thread. In fact, I'll copy this message to it's own and we can discuss it there.

http://debt-consolidation-credit-repair-service.com/phpBB2/viewtopic.php?t=3783

[ciphyre]

Just an update.

Received a call from edcombs, et al, about the CA playing foul. They reviewed what I sent them and wanted to ask a few additional questions.

They mentioned that they are looking at taking the case based on the CA trying to re-age the account, misrepresenting the character of the account and something I hadn't even thought of, unlawfully adding interest. The interest thing had me confused when I read the laws and tried to understand federal vs state etc.

Anyway, they are investigating the CA, I suppose to see if they have had any other complaints etc, and will go from there. It looks like they are going to do someting either way. I was looking for advice, and I am getting much more. I wanted to get them to cease and desist, but if I can help teach one of the many CA's a lesson, I am all for it!

I am so glad this board exists. Hopefully more people will find it, it is painfully obvious that every consumer needs to be educated on how to "play their game" and what the laws are to protect us. Now that I have learned alot and I am sure I will continue to learn more, I will share my experiences with everyone and help out the best I can so I can reciprocate the help and advice I have received here.

I will keep everyone updated as things progress. Thank you!!!

[retmar]

The news that warms my heart! That is just outstanding news! Good work!

[ciphyre]

Well not sure what this means (other than it's off my CR!), but Transunion deleted the tradeline for the CA that I refer to in this thread. Very quickly I might add.

I disputed it on 07/31 and got theletter in the mail yesterday showing it being deleted.

I wonder if my "knowing" some of the laws when I spoke with the ADUB from the CA made the difference?

I figured I would have to dispute this for quite some time. Anyone else had a tradeline deleted this quickly?

[retmar]

The quickest one I received was 12 days according to the date of their letter.

Since you are new here, I thought I may share something with you. "ADUB" is my nickname for CA rep's. It is short for "AW". To identify what "AW" means, think toilet tissue.

[ciphyre]

I knew it had to mean something along those lines..........

[ciphyre]

Well after the potential scare of this new CA trying to pinch me for money right before I was to close, I ended up closing after all!!!

I haven't heard from the CA, and as stated the tradeline has been deleted! Still going to pursue whatever edcombs sees fit to do, and will keep everyone updated on this progress.

Thanks for all the advice!!!