Bankrupcy/Charge off"s

[focusing on life]

Are credit agencies allowed to list accounts as chargeoff's on the payment history line after the date the debts were legally discharged. I'm only asking about the individual payment history info.

Thanks

You may seen this question before, I just can't find a response.

[LadynRed]

No, they are NOT ! There can be no 'late payment' on a discharged debt AFTER the date of your BK filing. There can also be no charge-off after your BK filing date IF the account was NOT charged-off prior to your bankruptcy.

[jq26]

Lady, quick question. I had a BK filed in Mar 04, dischargd in Oct 04. A CA account for a car is listed as "In bankruptcy" and the payment history shows a charge-off in 06/04. However, the underlying car note was late only one time, and paid in full to OC prior to BK.

Another CA account for a credit card that was discharged in 10/04 shows as "in Bankruptcy" and the payment history shows charge off in 06/04. I suspect both CA accounts are reporting incorrectly and killing my scores! Its the same CA.

From what you said above, how should they be listed, if at all? And what should the DOLA be? I DV'ed them twice, disputed with CRAs twice, everything. They refuse to budge! I have been corresponding with the CEO of this CA, and he basically told me they are reporting everything correctly and its too bad.

[focusing on life]

the only agency I'm having trouble with is experian. And I was rudely told the same as you. If they are not supposed to keep that data. What recourse do we have fi they refuse to place the correct info on file?

Thanks

[jq26]

focusing on life- I'm hoping to get specific instructions as I want to avoid attmepting a suit at all costs. In my opinion, your best shot is to go after the furnisher of the info, not the CRAs. I may be wrong, maybe Lady in Red or someone else with extensive knowledge can set us straight.

[5150]

what i do a lot of people disagree with. but i will put it out here for information. i dont want to sue anyone. to much hassle. i just stay focus on my goal and that is to get the higest fico scores that i can with out spending to much money and time as iam 65 years old and dont have any time to waste. i send the cras my bk discharge with the account that i am disputing and every time they have seen it my way to change the trade line to IIb 0 balance. when i send the page with the account info on it i redact all other entrys on that page. i think my scores since my bk will refleck that i am on a pretty good path to a house loan in the next 6 months.

[LadynRed]

Well, the FTC has this to say about it:

Mr. Michael Lovern, Sr.

President

TRIAL MANAGEMENT ASSOCIATES, INC.

8972 Quioccasin Road - Suite 172

Richmond, Virginia 23229

Dear Mr. Lovern:

David Medine asked me to respond to your Fax transmission of December 26, 1997, requesting our views concerning the legality under the Fair Credit Reporting Act (FCRA) of a credit bureau report of an account that has been discharged in bankruptcy as "charged off as bad debt." We acknowledge receipt of your request, pursuant to the Commission procedure set forth in 16 C.F.R. §2.2(a), for an investigation of the credit bureau.

Section 607( of the FCRA requires credit bureaus "to follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates." In our view, it is not a reasonable procedure to label an account that has been discharged in bankruptcy as "charged off as bad debt" if the account was open and not charged off when the consumer filed bankruptcy. Such a designation would be inaccurate or misleading, because it would indicate that the creditor had written off the account at the time of bankruptcy when it had not in fact done so.

Thank you for the information and documentation you submitted to us in connection with your request that we investigate this credit bureau's practices. As you may know, it is Commission policy not to comment on the status or existence of any nonpublic investigation.

The opinions set forth in this informal staff letter are not binding on the Commission.

Sincerely yours,

Clarke W. Brinckerhoff

[focusing on life]

thanks. This is really affecting my score.

[danspicket]

So if I filed my shcedules with the credit agencies and they took my discharged accounts to 0 but left all of my late pays on there they did not do there job?

Late pays are to come off to? Do you have the section of the law that pertains to this so I can make a copy and send it in with another dispute letter?

Thanks

[rdve]

I have recently come out of Ch7 BK, and have several accounts that were included. TU and EQ have updated the accounts and removed the payment history entriely (at least as far as the TrueCredit 3-in-1 shows)...but Experian has not updated any of the accounts.

My question is EX allowed to show an account that is being reported month after month as a CO, or is that a one time notation? I would think that a closed account that is CO should only once be shown in that status...and is there a firm date (BK filing / BK discharge) that they cannot show a change or a CO status?

Thanks!!!

--Randall

[Methuss]

Read this:

http://www.ftc.gov/os/statutes/fcra/lovern51.htm

The FTC specifically says that a creditor may not list a debt as charged off after a debt was discharged in bankruptcy. The letter also lists the specific part of the FCRA this violates.

Apparently this practice is fairly commonplace since a creditor asked the FTC if it was OK or not.

[rdve]

Thanks for the link...how are CO's to be handled that were done before the BK was filed?

[Anonymous]

My guess would be accounts that were charged off before BK remain charged off.

However I am not an expert in that.