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Removing unpaid but transferred Charge-offs


gumshoe
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I have two chargeoffs one from Merrick Bank on the other from Fingerhut. Neither one of these accounts is still with the original creditor they both have been sold. Thank God those CA's are reporting. But, I have tried to dipsute these off my reports but with no luck. Is there an alternative maybe writing the OC or something any advice would be helpful..

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If the CO's have been sold, they need to be reporting a zero balance. You need to send the OC a letter stating that they're reporting incorrect information on your files, don't tell them what exactly in hopes that they'll pull a report on you resulting in a violation. Send it CMRRR, track it and when they sign for it, dispute again with the CRA's using another reason. They are not allowed to respond without a notice of your dispute and they usually don't include that which is another violation. Use the violations as leverage to force them to remove. If they don't, start threatening them that you're going to file complaints with the BBB/AG/FTC/PFB, most OC's (or some at least) care enough about their reputation to remove the derogs.

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Company

Address

Date

RE: Account XXXX

Dear Sir/Madame:

I am writing to dispute the account referenced above. I have disputed this account information as inaccurate with the credit bureaus <insert names of credit bureaus here>, and you have been able to verify this debt. How is this possible? I was {not late} {this is not my account} {I am only an authorized user}.

In the event that you can not verify the item pursuant to the FCRA, and you continue to list the disputed item on my credit report I will find it necessary to sue you for actual defamation damages and declaratory relief under the FCRA. According to this regulation, I may sue you in any qualified state or federal court, including small claims court in my area. You have severely limited my ability to {purchase a home} {get a job} {get a credit card}.

In light of the recent court case opinion No. 00-15946 CV-99-00290-D.C. by the US Court of Appeals 9th Circuit, Nelson Vs. Chase Manhattan, the court ruled that the creditor has the responsibility to investigate and make sure that correct information is being reported to the bureaus, and that the consumer has a right to sue under the FCRA, should his or her rights be violated.

While I prefer not to litigate, I will use the courts as needed to enforce my rights under the FCRA.

I look forward to an uneventful resolution of this matter.

Sincerely,

Name

Address

{This section requires the oc or furnisher to INVESTIGATE the account once it has been disputed as inaccurate by the consumer}

(B) Duties of furnishers of information upon notice of dispute.

(1) In general. After receiving notice pursuant to section 611(a)(2) [§ 1681i] of a dispute with regard to the completeness or accuracy of any information provided by a person to a consumer reporting agency, the person shall

(A) conduct an investigation with respect to the disputed information;

Enclosures <you can enclose a copy of the court case referenced above>

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{This section requires the oc or furnisher to INVESTIGATE the account once it has been disputed as inaccurate by the consumer}

(B) Duties of furnishers of information upon notice of dispute.

(1) In general. After receiving notice pursuant to section 611(a)(2) [§ 1681i] of a dispute with regard to the completeness or accuracy of any information provided by a person to a consumer reporting agency, the person shall

(A) conduct an investigation with respect to the disputed information;

No it does not require and OC to investigate if the consumer notified them directly. You need to read the FCRA as a whole especially the part stating "pursuant to section 611(a)(2)" because that section clearly states.

§ 611. Procedure in case of disputed accuracy [15 U.S.C. § 1681i]

(a) Reinvestigations of disputed information.

(2) Prompt notice of dispute to furnisher of information.

(A) In general. Before the expiration of the 5-business-day period beginning on the date on which a consumer reporting agency receives notice of a dispute from any consumer in accordance with paragraph (1), the agency shall provide notification of the dispute to any person who provided any item of information in dispute, at the address and in the manner established with the person. The notice shall include all relevant information regarding the dispute that the agency has received from the consumer.

(B) Provision of other information from consumer. The consumer reporting agency shall promptly provide to the person who provided the information in dispute all relevant information regarding the dispute that is received by the agency from the consumer after the period referred to in subparagraph (A) and before the end of the period referred to in paragraph (1)(A).

The dispute has to go through the CRA and not to the OC as you are suggesting and that's exaxtly what the case of Nelson v. Chase is about, it creates a private right of action for a consumer to sue under the FCRA PROVIDED that the consumer has disputed it with the CRA.

http://www.law.com/regionals/ca/opinions/mar/0015946.shtml

But Congress did provide a filtering mechanism in § 1681s-2(B) by making the disputatious consumer notify a CRA and setting up the CRA to receive notice of the investigation by the furnisher. See 15 U.S.C. § 1681i(a)(3) (allowing CRA to terminate reinvestigation of disputed item if CRA "reasonably determines that the dispute by the consumer is frivolous or irrelevant" ). With this filter in place and opportunity for the furnisher to save itself from liability by taking the steps required by § 1681s-2(B), Congress put no limit on private enforcement under § § 1681n & o.

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Here you go Swede, this is the documents I have copied over that we as a credit bureau by the FTC are required to forward to every creditor signing up to report & access credit reports.

http://debt-consolidation-credit-repair-service.com/phpBB2/viewtopic.php?t=10059

Notice of Furnishers of Information

Notice of Users of Consumer Reprots

Summary of Rights

They can be forced to start helping consumers out on disputes - it is the FTC that produced all of these documents... Might have to search site map at their site but it is there.

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I know what document you’re referring to, it’s right here http://www.ftc.gov/bcp/conline/pubs/buspubs/infopro.htm

But this document still doesn’t state that a furnisher must respond to, and investigate disputes sent directly to them from the consumer. The FTC are currently attempting to get Congress to amend the FCRA, you can find the entire proposed amendment here http://www.ftc.gov/os/2003/07/fcratest.html but the most important thing in this document is the following:

D. Improving the FCRA - the Commission's additional proposals

1. Duty of furnishers to respond to disputes directed to them

Under Section 623(B) of the FCRA, furnishers have a duty to investigate only disputes that are sent to them from a CRA.(25) Unfortunately, many consumers who learn about errors in their report may contact the furnisher directly, and may not know that they must notify the CRA to trigger the furnisher's obligation to investigate. The result may be confusion and delay in resolving disputes. The Commission recommends that the FCRA be amended to provide that disputes raised with furnishers receive the same treatment as disputes filed with a CRA.

In addition, in the document you posted it doesn't say anywhere that the OC must respond to the consumer at any point, nor that they need to investigate the item when the dispute is received from the consumer. Read both sections (from consumer/from CRA) AND the case of Nelson v. Chase.

This is from your document:

3. Responsibilities After Notice of a Consumer Dispute from a Consumer --Sections 623(a)(1)(B) and 623(a)(3).

If a consumer writes to the address you specify for disputes to challenge the accuracy of any information you furnished, and if the information is, in fact, inaccurate, you must report only the correct information to CRAs in the future. If you are a regular furnisher, you also will have to satisfy the duties in Item 2.

Once a consumer has given notice that he or she disputes information, you may not give that information to any CRA without also telling the CRA that the information is in dispute.

4. Responsibilities After Receiving Notice from a Consumer Reporting Agency -- Section 623(B).

If a CRA notifies you that a consumer disputes information you provided:

You must investigate the dispute and review all relevant information provided by the CRA about the dispute.

You must report your findings to the CRA.

If your investigation shows the information to be incomplete or inaccurate, you must provide corrected information to all national CRAs that received the information.

You should complete these steps within the time period that the FCRA sets out for the CRA to resolve the dispute -- normally 30 days after receipt of a dispute notice from the consumer. If the consumer provides additional relevant information during the 30-day period, the CRA has 15 days more. The CRA must give you all relevant information that it gets within five business days of receipt, and must promptly give you additional relevant information provided from the consumer. If you do not investigate and respond within the specified time periods, the CRA must delete the disputed information from its files.

If Congress intended that furnishers must initiate an investigation and respond directly to the consumer- they would have included it in the FCRA and the FTC would have posted it in the bullets in the document you posted and not actively persuading Congress to amend it.

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Sorry, I kept thinking that they where obligated, here we actually encourage the creditors to help consumers and do have quite a few in this area that work with us on a regular basis to accomidate disputes with consumers.

I read that if changes go through, that even consumers that are not directly related to our customers can start contacting us to help with disputes. Just don't know anymore on this part yet, but it will be real interesting if Resellers are to become obligated on this part!

Right now, I can only step in to help consumers that are linked to customers of ours.

Tomorrow I have to give a siminar with some banks, and we will continue to direct them to be responsible no matter what - when a consumer has a dispute!

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I didnt say that the consumer could dispute this with the oc. What the letter says is that the consumer disputed with cra and cra says the oc verified. With this happening, the consumer has a right to ask the oc how they were able to verify this info. The consumer has a right to ask the oc how they investigated this account that led them to be able to respond it was accurate to the CRA.

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I didnt say that the consumer could dispute this with the oc. What the letter says is that the consumer disputed with cra and cra says the oc verified. With this happening, the consumer has a right to ask the oc how they were able to verify this info. The consumer has a right to ask the oc how they investigated this account that led them to be able to respond it was accurate to the CRA.

No that's also incorrect, sure you can ask whatever you want but that doesn't mean anyone needs to comply. You're talking about procedural descriptions now, which is an obligation of the CRA again, not the OC.

The letter you suggested is sent directly to the OC and you did state that the OC must respond "The oc we use FCRA, which they have to respond to if they furnish info to the cra". That is not correct, they do not have to respond to you.

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If you are sure they were sold, you can try and send verification letters to the oc. If they are reporting, under FCRA they are obligated to verify that it is you that owes this debt. You can find a letter at my web site under oc letters.

Where is your web site? I would like to use a letter also.

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Should I send the letter Swede or use the method you mentioned....Thanks for allof you guys help.

What I don't like about the letter above is a) you're not stating clearly what you want them to do. You're not saying "give me proof or remove the item", you're just saying you're disputing it and asking how they verified with the CRA.

and B) this is supposedly your first communication with the OC so I would tone down the threats of lawsuits and be nice in my first letter, more like "uhm I don't exactly know who you are and why you are reporting incorrect information on my file but you need to remove it" and then dispute w. the CRA. The less they think you know initially, the easier it will be to lure them into violations.......just my opinion, of course you can and should do what you think is right.

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