OC reported as loss

[dwarfess]

Filed taxes using H&R Block and received a rapid tax refund from HSBC Bank USA. The refund took 9 months, thus I was charged interest for 9 months.

Credit reports show this account was charged off, closed and reported as a loss by the credit grantor. If reported as a loss, can collection efforts continue?

Just received collection letter from HSBC Taxpayer Financial Services. How do I respond for purposes of validation . . . should HSBC Financial Services be treated as a collection agency?

Letter from HSBC

10/16/2007

HSBC Taxpayer Financial Services Inc

P.O. Box 10690

Wilmington, DE 19850-0690

RE: Account Number: xxxxxxxxx

During a review of your account, we noted that late charges previously assessed were incorrectly calculated. As a result, we have credited $4.62 toward your outstanding balance. Your revised balance outstanding is $240.72.

For your convenience, you can call our secured automated service to pay over the phone at 1-800-288-3811 or send payment to the following address through Western Union Quick Collect:

Code City: TAXMASTERS

STATE: DELAWARE

Please remember to include your loan number on the Western Union Payment form.

We appreciate your business and regret the inconvenience our error may have caused. Please contact us at the toll-free number provided if you have any questions.

Sincerely,

HSCB Taxpayer Financial Services Inc.

800-543-1080

This communication is from a debt collector. We are required by law, if applicable, to notify you that we are attempting to collect a debt and any information obtained will be used for that purpose.

[willingtocope]

Welcome...and, wow, what a rip off...

Second, yes, since they include the "mini-miranda" at the bottom of their letter, I'd assume they're a collection agency and respond with a DV. They may not be, but it couldn't hurt.

And, first, yes...even if the tradeline on your reports says "charge off" or "written off", it doesn't really mean anything to you. They still own it, you still owe it, they can still try to collect, and, if the original contract said they could, they can still charge penalty and interst.

[Amerikaner83]

I got a faster refund (3 weeks) with the IRS! Not very rapid, I'd say.

Was it a LOAN you took out that would be paid off upon receipt of your tax return?

[dwarfess]

Thanks for the quick reply! Didn't know if items reported as a loss by the credit grantor were treated differently.

Been helping my daughter cleanup her credit. Started sending DV's 10/09/07. Have made great progess thanks to the credit forums. Still have a medical collection and this HSBC item to handle. Bankruptcy falls off in May 2008.

Scores as of 11/16 are now in the Good category!

TU 548 569 575 694

EQ 577 658 658 668

EX 576 573 574 731

[dwarfess]

Yes, it was a loan based on the tax return filed by H&R Block, who owns HSBC. The so called "tax refund loan" is sent directly to HSBC by the IRS. The loan is supposed to be paid in full once they receive the refund . . . but, that is based on them receiving the refund within 1-month. I confirmed with IRS that the refund wasn't issued until October.

Question remains...why did it take so long...since H&R filed the return, how do you prove they actually filed it in January vs. October.

[Amerikaner83]

you have records? Look there. H&R Block was involved in some sort of lititagation regarding tax loans, i believe, a year or so ago...might want to dig deepr into that.