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Charged off Bofa account and NCO Collections


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Hi,

First I'd like to thank everyone on this site for the wealth of information. I've learned a lot already, yet still have so much more to learn. Here is my situation:

I had a credit card with BofA that was charged off 8/2004. The balance at the time of the charge off was $1750. Last month I received a collection letter from NCO Financial and it is now up to $4000.

Following the advice of the sticky above, I emailed NCO asking for validation of the debt. I'm optimistic that this debt will be erased since they seem to drop it once this letter is sent. That and I doubt they can justify $2300 in interest.

So here's my question. Once the debt is dropped by NCO, how do I proceed with the OC? Will it still show charged off on my credit report? I assume that it will. Should I proceed to send my OC a DV letter or try to settle the debt with them?

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You don't DV the OC (unless your state laws extend the FDCPA to OCs). Has the account been sold? Regardless, the TL will still read "CO". But if it's sold, then it should read "Sold/Transferred to Another Lender" and w/ a $0 balance. BOA is one of the banks that continue to add interest to CO accounts. So, NCO may not be the ones who added on $2300 worth of interest. If NCO doesn't respond to your DV and you have the $$$ to settle, then you'll need to contact BOA if they still own it. If they sold it, then BOA can do nothing for you.

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I got a letter in the mail today from NCO. They said they have contacted the creditor about validation and will forward what they get to me. So what now? Do I go ahead and dispute the debt with the credit bureaus too? Or do I wait until 30 days have passed and tell them to delete the record of the debt?

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  • 3 weeks later...

Ok so I got the results of the investigation back from Equifax and Experian. Equifax verified the debt, while Experian deleted it. Still waiting on Transunion. Is the burden of proof lower at Equifax or something? This doesn't make any sense.

Also, I haven't received any material from the CA since they sent me the letter confirming they received my DV on August 4. I guess it's time to start drafting up my next set of letters.

According to the flowchart, I think I need to ask for method of verification from Equifax. Would it help me to let them know that Experian has investigated and deleted the record?

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According to the flowchart, I think I need to ask for method of verification from Equifax.

Make sure you do a search for "MOV" b4 you do. Requesting MOV is usually for the purpose of obtaining papertrail if you're planning on taking the CRA to court. Other than that, it's worthless. The CRAs either respond w/ a crappy template letter that doesn't answer your question or they don't bother to respond @ all.

Would it help me to let them know that Experian has investigated and deleted the record?

To let EQ know??::laugh:: I don't think so. (I laugh b/c a CRA BARELY does anything to help the consumer. If it were that simple, many of us wouldn't be on this site.) The CRAs are independent of each other; one has nothing to do w/ the other. They conduct their own, individual investigations and have their own rules/procedures. Sending them info that "EX deleted so you should too" will only get you a big...fat...HA! When one CRA deletes while another verifies is usually b/c the data furnisher verified w/ one and not the other...or b/c someone @ the CRA isn't doing their job. So...you would have to address the TL w/ each CRA separately.

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September 4 is coming up on 30 days and I still haven't heard back from NCO except for getting the letter that they received my request for validation on August 4.

Now supposedly if I dispute the debt 30 days after receiving their initial letter, they have to validate within 30 days or remove, correct?

Well the letter I received from them was dated July 12, 2006 and I replied to them on August 4. The thing is, I'm not sure if this is their initial letter or not. All the verbage makes it appear as though it is the initial letter, but it is possible I may have thrown out a previous letter without looking at it (you know that overwhelming feeling). Also, when I checked my credit reports in early August, the debt from NCO was already on there, dated 2/2006 on my Experian report.

Legally, can I just say that this July 12 letter is the first contact I had with NCO and that since they haven't satisfied my request for validation within the time frame, they must remove?

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  • 2 weeks later...

Just an update. NCO sent me a letter telling me that they were unable to get validation from BofA and are closing the account. Equifax seems to be a little slow on getting the entry deleted, so I've made them reinvestigate, but it's looking that this TL will be deleted from all 3 bureaus.

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Now supposedly if I dispute the debt 30 days after receiving their initial letter, they have to validate within 30 days or remove, correct?

Do you mean request DV after 30 days of receiving the initial letter? You can do that, but NCO doesn't have to cease collection. Remember: there is no set time for a CA to respond to a DV. They are only required to cease collection activity until they provide validation, if a consumer requests DV w/in 30 days of initial communication.

Well the letter I received from them was dated July 12, 2006 and I replied to them on August 4. The thing is, I'm not sure if this is their initial letter or not. All the verbage makes it appear as though it is the initial letter, but it is possible I may have thrown out a previous letter without looking at it (you know that overwhelming feeling).

That's why it's important to include in your DV letter that you are responding to the letter which is the first letter you've ever received from them. Let them know that it is the intial communication.

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Just an update. NCO sent me a letter telling me that they were unable to get validation from BofA and are closing the account. Equifax seems to be a little slow on getting the entry deleted, so I've made them reinvestigate, but it's looking that this TL will be deleted from all 3 bureaus.

:woohoo: Congrats, Doll!!

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