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HSBC/CompUSA Refuses to list account as IIB

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I filed my BK (Pro Se) 8-29-05. It was discharged 12-8-05.

HSBC/CompUSA has refused to list an account that was included in my Chapter 7 as IIB with Experian. It has been disputed as IIB and verified by Experian with no change. It only took them 2 days to verify the TL. So I contacted HSBC/CompUSA. They claim that since they sold the account to Sherman Acquisition prior to my bankruptcy that they aren't required to update the status and told me to address any future concerns to Sherman. HSBC/CompUSA was on the the creditor matrix and schedule F as well as Sherman. Sherman (LVNV) has already removed their TL.

Here is the TL...........

HSBC/COMP

Address:

PO BOX 15524

WILMINGTON, DE 19850

No phone number available

Account Number: 7001............

Status: Transferred,closed/Account charged off. $5,192 written off.

Status Details: This item was verified and updated on Feb 2006.

Date Opened: 11/1997

Type: Revolving

Reported Since: 07/2002

Terms: NA

Date of Status: 07/2002

Monthly Payment: $0

Last Reported: 07/2002

Responsibility: Individual

Credit Limit/Original Amount: NA

High Balance: $5,192

Recent Balance: NA

Recent Payment: NA

Creditor's statement: Account transferred to another lender.

Account History: Charge Off as of Jul 2002

Does Sherman have the ability or responsibility to correct HSBC/CompUSA's TL since they are the current owner of the account?

This almost certainly seems like a violation of 15 U.S.C. ยง 1681s-2 of the FCRA. Opinions on this would be appreciated.

Is there anything in the BK code that would help? I can't find anything in the BK code that addresses reporting. Continued collection activity seems to be a long shot. If anyone knows of anything, please include the paragraphs and sections.

Any Caselaw or staff opinion letters that might help would also be appreciated.

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Does Sherman have the ability or responsibility to correct HSBC/CompUSA's TL since they are the current owner of the account?

No one can change CompUSA's listing but them.

What CompUSA is reporting though is correct in that they are not showing any balance owed and it shows that they sold it. The status date for the charge-off is 4 years ago, so there's no real damage being done here that I can see.

There is case law regarding negative reporting on a discharged debt, but CompUSA hasn't done any reporting on that debt in 4 years.

Ask one of the lawyers over at www.myfaircredit.com.

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If they sold it before your discharge date, there's no need for them to report it IIB. If they sold it AFTER your discharge date, they would have to.

Sorry.

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You want it changed to IIB, this will affect your score less and is maximum possible accuracy.

Okay, so, I've been thinking about this, and I think I was wrong before. I haven't filed BK, so I haven't thought through all the subtle side effects.

So here's what strikes me as a relatively common case:

1) debtor gets into trouble, files BK

2) creditor receives notice of BK, sells account (so they can get SOMETHING for it)

3) original debt is discharged in BK

So the question is whether, given the above, the OC would have to report the tradeline as IIB. I believe the answer is yes (where before I thought it was no).

The reason?

It was the debtor filing BK that prompted the sale to a JDB. A lot of people who file BK dismiss their BKs or reaffirm, so there's some chance of recovery for the buyer.

The one case I'm not certain about is if the account was sold to a JDB prior to filing.

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Thanks for the reply Direred. I was under the assumption that IIB would be better than charged-off, even if the balance does show $0.

As far as selling to a JDB is concerned, HSBC sold it to Sherman several years before the BK-7 was filed. HSBC (as well as Sherman) was still notified (mailing matrix) and included on the schedule F. I might be looking at it wrong, but my assumption would be that they are still obligated by the FCRA to keep their listing accurate and up to date or quit reporting.

I have had success getting some to update their TL's to IIB, even though they sold them to JDB's. Some of them have even dropped their listings altogether. I did this by just calling their customer support numbers and getting the calls forwarded or new numbers to call because of the status of my accounts. HSBC is being just plain nasty! Their customer reps talk right over top of you and don't let you get a word in edgewise.

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