LostnFound Posted April 13, 2005 Report Share Posted April 13, 2005 A Fingerhut account that was included in my son-in-laws BK appears to have been sold to a Jefferson Co. and is now being reported as a CO on his CR. Isn't this a violation on the BK laws and where does he start to get this fixed? He wqas turned down for a loan because his score was low and when he checked he found this account.Thanks for your help Link to comment Share on other sites More sharing options...
Methuss Posted April 13, 2005 Report Share Posted April 13, 2005 Yup. The sale was not legal.What you do is send a copy of the discharge to the new "owner" of the account. Tell them that it was discharged in bankruptcy and that they should get their money back on it from Fingerhut. Tell them that they can't report a charged off debt that doesn't exist (discharged) and that they must remove it in its entirety from the credit report or face civil action for reporting false information as well as having it reported to the FTC and the Federal court.Once they know that it was included in the BK before they came into possession of it, they must remove it or the continued reporting is false. Link to comment Share on other sites More sharing options...
LadynRed Posted April 13, 2005 Report Share Posted April 13, 2005 I disagree.. the sale of the useless debt IS legal, its the REPORTING of it that breaks the law. These CA's and creditors buy and sell discharged debts ALL the time, it seems pointless to me why ANYONE would BUY a portfolio like that, they cannot possibly collect w/o violating FEDERAL law. Link to comment Share on other sites More sharing options...
5150 Posted April 13, 2005 Report Share Posted April 13, 2005 i think they buy the bk debt for pennys and hope to collect from people that dont understand there rights. they can buy and sell all they want. and thet jdb break the law every day and hope that no one sues and wins. they must be making money on the junk debt or they would not buy it. Link to comment Share on other sites More sharing options...
Methuss Posted April 14, 2005 Report Share Posted April 14, 2005 I disagree.. the sale of the useless debt IS legal, its the REPORTING of it that breaks the law. These CA's and creditors buy and sell discharged debts ALL the time, it seems pointless to me why ANYONE would BUY a portfolio like that, they cannot possibly collect w/o violating FEDERAL law.The FDCPA specifically forbid the misrepresentation of the legal status or character of the debt. So selling it while knowing it has been discharged violates the FDCPA at face value. Additionally, selling a discharged debt to someone else claiming it has value would be fraud. Link to comment Share on other sites More sharing options...
LadynRed Posted April 14, 2005 Report Share Posted April 14, 2005 If that could be proven and litigated, it would be a boon to everyone with discharged debts. There are tons of portfolios out there of discharged debts.. if it were ILLEGAL to sell them, then ALL the JDB's and CA's are in violation of the law just buy purchasing and the sellers are in violation for selling them.Ok.. who wants to pursue THAT one ??? Link to comment Share on other sites More sharing options...
petea1226 Posted May 14, 2005 Report Share Posted May 14, 2005 I have a question about a similar situation....if the debt is sold prior to the bankruptcy, and both the original creditor and the new creditor are included in the bankruptcy, should the orignal creditor in the credit report show the account as accout transferred/charged off instead of discharged in bankruptcy? The new creditor is not listed at all. Link to comment Share on other sites More sharing options...
LadynRed Posted May 14, 2005 Report Share Posted May 14, 2005 Any debt that is included and discharged in a bankruptcy, regardless of any transfers during the BK process, must be reported as 'inlcuded in bankruptcy'. Dispute it if its not. Link to comment Share on other sites More sharing options...
petea1226 Posted May 15, 2005 Report Share Posted May 15, 2005 Thanks Lady. I did dispute and it came back verified. Do I contact Providian next, or do I talk to my lawyer? Link to comment Share on other sites More sharing options...
LadynRed Posted May 15, 2005 Report Share Posted May 15, 2005 FACTA allows you to dispute directly with the creditor. Since SOMEONE is lying, its time to try that route. What did you dispute say ? Link to comment Share on other sites More sharing options...
petea1226 Posted May 16, 2005 Report Share Posted May 16, 2005 I disputed it (account transferred/charge off) on the grounds that it was included in bankruptcy (which it was), but Equifax reported that it came back verified. Link to comment Share on other sites More sharing options...
LadynRed Posted May 16, 2005 Report Share Posted May 16, 2005 Was the account in charge-off status before you filed for BK ?? Link to comment Share on other sites More sharing options...
petea1226 Posted May 17, 2005 Report Share Posted May 17, 2005 Yes it was. Does it matter, since it was included in the bankruptcy? Link to comment Share on other sites More sharing options...
Alexander Posted May 17, 2005 Report Share Posted May 17, 2005 A Fingerhut account that was included in my son-in-laws BK appears to have been sold to a Jefferson Co. and is now being reported as a CO on his CR. Isn't this a violation on the BK laws and where does he start to get this fixed? He was turned down for a loan because his score was low and when he checked he found this account. Thanks for your helpIt's not a violation of the FCRA to sell a debt that was included in BK. The debt is un-collectible unless someone cosigned for the debt but the debt continues to exist. If a CA starts collection activity in an IIB account the consumer can go back to the BK court and get them to fine the CA. There was a case of this happening in NC. But the consumer has no cause of action to sue the CA under the federal BK laws. I don't see anything that prevents an account from being sold.I have a question about a similar situation....if the debt is sold prior to the bankruptcy, and both the original creditor and the new creditor are included in the bankruptcy, should the orignal creditor in the credit report show the account as account transferred/charged off instead of discharged in bankruptcy? The new creditor is not listed at all.I think it should be listed as "discharged through chapter 7 bankruptcy" no mater what. And the balance should be zero. I would go after the Original Creditor (OC) on getting the account listed correctly. Basically say "you are reporting information incorrectly and are in violations of the FCRA to the tune of at least $1000 and You must either have all CRA's that you have reported the account to either delete the account or have them list the account correctly. 15 days constitutes a reasonable time. Mention that if they don't comply you will file complaints with the Office of the Comptroller of the Currency (OCC), the Better Business Bureau (BBB) and the States attorney Generals office (SAG) of the state that the OC operates out of.I would send the letter Certified Mail / Return Recite requested (CM/RRR) in an oversized manila envelope to the cooperate address.Attn.: Joseph Saunders, CEOProvidian Financial Corporation 201 Mission St.San Francisco, CA 94105 Link to comment Share on other sites More sharing options...
LadynRed Posted May 17, 2005 Report Share Posted May 17, 2005 If the debt was charged-off BEFORE you filed for BK then that is accurate as far as the HISTORY of the account is concerned and history CAN stay. It should ALSO show as IIB with a zero balance, dispute it if its not. Link to comment Share on other sites More sharing options...
petea1226 Posted May 17, 2005 Report Share Posted May 17, 2005 That is my point. It was a charged off account and included in bankruptcy, but the TL does not indicate that. Instead it just says "Account Sold/Charged off" with no indication that it was included in the bankruptcy. I disputed and Experian says that it came back verified. I was wondering my next course of action. Link to comment Share on other sites More sharing options...
LadynRed Posted May 17, 2005 Report Share Posted May 17, 2005 This wouldn't be BankOne/FUSA now CHASE would it ?? B1/FUSA is well-known for their deliberate refusal to report accounts as IIB so they can keep punishing you for having the nerve to file BK on them. Link to comment Share on other sites More sharing options...
petea1226 Posted May 17, 2005 Report Share Posted May 17, 2005 No, its Providian. I had 2 accounts with them, one TL appears right but this one isn't, and is probably hurting me a lot more than having it as IIB. Link to comment Share on other sites More sharing options...
Alexander Posted May 18, 2005 Report Share Posted May 18, 2005 That is my point. It was a charged off account and included in bankruptcy, but the TL does not indicate that. Instead it just says "Account Sold/Charged off" with no indication that it was included in the bankruptcy. I disputed and Experian says that it came back verified. I was wondering my next course of action.When you do a basic dispute like you did all that happens is a flunky has the computers at Experian ping the computers at Providian. That's it. So now you know what is in Providian's computers now regarding your account. So your next step is to send a letter to Providian as I outlined before. And then use the OCC to get them to comply. Link to comment Share on other sites More sharing options...
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