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chargeoff Notification violation


energizer
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Hi

I always thought that it is a violation if the OC havent notified the account holder about the account being charged off within a certain period?. Is that true?. Does that help in anyway having the TL removed from CRA's.

Now if they haven't what can you do? I am working with one OC in regards to this and it seems like i am getting nowhere. They keep sending me back the same letter saying your account has been reported accurately to CRA's. It reads

"The terms and conditions that govern this account provide us with specific rights to which you agreed". When your account was opened with us and you used the credit card, you made a promise to pay for all goods and services provided through the related credit card transactions, as well as any associated fees". Your present position breaks that promise.

Plz note that we will continue to report the status of your account monthly to each of the credit reporting agencies.

Any suggestions.

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Not that I am aware of.

You get statements every month that say you have a past due amount owed, they do not have to tell you when it is CO and they don't have to advise you that they assign, sell or transfer a debt to a collection agency.

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What is it that they are reporting that you have an issue with and why?

It is my understanding that reporting to the credit bureaus negative information such as chargeoff's must be a notification first to the account holder and secondly to the credit bureaus. There is a section in FACTA, that explains this. There is also a time limit to this notification of chargeoff

If both are violated, what is the account holders recourse.

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I believe Energizer may be referencing the following, which is in sec 623.

(7) NEGATIVE INFORMATION-

(A) NOTICE TO CONSUMER REQUIRED-

(i) IN GENERAL- If any financial institution that extends credit and regularly and in the ordinary course of business furnishes information to a consumer reporting agency described in section 603(p) furnishes negative information to such an agency regarding credit extended to a customer, the financial institution shall provide a notice of such furnishing of negative information, in writing, to the customer.

(ii) NOTICE EFFECTIVE FOR SUBSEQUENT SUBMISSIONS- After providing such notice, the financial institution may submit additional negative information to a consumer reporting agency described in section 603(p) with respect to the same transaction, extension of credit, account, or customer without providing additional notice to the customer.

(B) TIME OF NOTICE-

(i) IN GENERAL- The notice required under subparagraph (A) shall be provided to the customer prior to, or no later than 30 days after, furnishing the negative information to a consumer reporting agency described in section 603(p).

(ii) COORDINATION WITH NEW ACCOUNT DISCLOSURES- If the notice is provided to the customer prior to furnishing the negative information to a consumer reporting agency, the notice may not be included in the initial disclosures provided under section 127(a) of the Truth in Lending Act.

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I suspect your understanding may be wrong. Perhaps if you could post the sections that you think gives rise to a violation it could help us all?. :dunno:

Hi

I am refrencing exactly what wahoo posted>?

Should that occur, what should be the next steps?. How does that help getting tradeline removed. Or does it not apply.It dont matter whether its CA or OC that dont apply.

The only best solution i have found is to have TL DELETED, not settled. so i would also like to provoke OC/CA's to come and sue me or myself sue the OC/ca. (for violations if any)

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IMO, this would only apply to the OC due to the follow phrase:

(i) IN GENERAL- If any financial institution that extends credit and regularly and in the ordinary course of business furnishes information to a consumer reporting agency described in section 603(p) furnishes negative information to such an agency regarding credit extended to a customer

Since the CA/JDB does not extend credit I would think they would be off the hook. As for the OC It has been my experience that when a payment is missed you get the “oops Letter, did you forget us?” usually accompanied with the “we may report negative information” statement. Until recently I was of the opinion that we may was satisfactory. I have since changed my position, as there is a big difference between we may and we will or did. To my knowledge there is no case law that I have been able to find that supports my position or otherwise, if there is please point me to it.

On another note I wonder if there is anyway to hang the JDB’s that assumes the OC position and claims to not be bound by FDCPA, the Midlands and LVNV’s of the credit world.

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I am pretty certain the Credit Card company will have included the health warning in an overdue notice and/or statement of account.

If they have then;

(ii) NOTICE EFFECTIVE FOR SUBSEQUENT SUBMISSIONS- After providing such notice, the financial institution may submit additional negative information to a consumer reporting agency described in section 603(p) with respect to the same transaction, extension of credit, account, or customer without providing additional notice to the customer.

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Many OCs send you an annual notice with your privacy rights and how they share information with their affilliates and others.

Hidden there somewhere, they say they may disclose information about you to the CRAs.

Besides, 623(a) does not give you a private right of action. Good luck having the AG or the FTC filing a lawsuit to enforce it.

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  • 3 weeks later...
Many OCs send you an annual notice with your privacy rights and how they share information with their affilliates and others.

Hidden there somewhere, they say they may disclose information about you to the CRAs.

Besides, 623(a) does not give you a private right of action. Good luck having the AG or the FTC filing a lawsuit to enforce it.

I believe you are wrong abt 623(a). If that was the case, it would not be in FACTA 2003 which is 623(a). I am interested in researching it.

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Important Notice:"We may report information about your account to credit bureaus. Late payments, missed payments, or other defaults on your account may be reflected on your credit report.
Most of my bills come tucked away with that standard statement in the fine print, somewhere, and as I understand it, that is all that is required. They don't have to send a special notice, regarding the information they report, and I've never known them to do so, back when my credit was a train wreck. I think they only technically have to provide that information to once, though many do routinely.

A charge-off is the logical next step in accounting once you continue to miss payments and default.

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Most of my bills come tucked away with that standard statement in the fine print, somewhere, and as I understand it, that is all that is required. They don't have to send a special notice, regarding the information they report, and I've never known them to do so, back when my credit was a train wreck. I think they only technically have to provide that information to once, though many do routinely.

A charge-off is the logical next step in accounting once you continue to miss payments and default.

I have received a letter from Cap1 regarding charge-off. They have been very specific in notifying me within the 30 day period that the account will be charged off.

If Crap1 can do it, why not others. thats a shame!!!!!.

also, they have not DARED to report an account that was opened using my corporate tax id to identify and report on my personal credit report. I know there is all sort of personal gurantee using SS# and others but atleast Crap1 is in compliance.

I am intent on finding out via lawyers if there is going to be some recourse, fighting it, having it removed from credit bureaus becoz of

a) No timely notification

B) Business account

Any suggestions?

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If you could say in more details it will be good to understand. Things are quite confusing specially the short words you have written here, so I need to make some guessing on understanding the whole post.

Let me be more clear!!!!

I was 180 days late + extra days on my business credit card account with US Bank and Capital One. (aka. Crap 1). So, Crap1 wrote me a very nice letter informing me that your account will go into chargeoff at such and such a date. Crap 1 notified me exactly within 180 + extra days via a sweet letter saying your account is going to be charged off at such and such a date. US Bank has provided no such notification. Both cards used my tax id and SS# on their applications.

Secondly, I have a business credit card thru US Bank that used my corporate tax id to open my account but also identified it on my personal credit report. This account with US Bank is in collection and is reported as profit/loss writeoff or chargeoff.

Now I have a very similar business credit card account with Capital One and is in collections/chargeoff. Capital One has not DARED TO report the same business credit card account which is in collection to my personal credit report.

What i am debating is while US Bank would report the profit-loss writeoff on my personal credit report,even when the account is a business credit card Crap1 havent dared reporting the chargeoff to my personal credit report. Crap1 also is a business account using my tax Id. I wonder why?.

Why can Crap1 notify me of a chargeoff and not report my business credit card to personal credit report but US Bank chooses to report it to my personal credit report. I do have a tax id and a business credit report with D & B. and the three credit bureaus.

So in essence what I am saying is that

a) crap1 has given me timely notification of chargeoff and

B) Crap 1 has chosen not to report my business acccount to my personal credit report.

I cant say the same abt US Bank. I intend to fight this with US Bank.

Help!!!!

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If on your app you show a ss# also listed does that mean that a personal gurantee was given.I was very specific when filling out the app that only my corporate tax ID be used. I was set up as a c-corp and that C corp was dissolved in 2008.

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If on your app you show a ss# also listed does that mean that a personal gurantee was given.I was very specific when filling out the app that only my corporate tax ID be used. I was set up as a c-corp and that C corp was dissolved in 2008.

The terms and conditions of the contract you signed, and probably also the application literature will state if a personal guarantee was given or not. It is reasonably common for such a guarantee to be required when dealing with SMC's.

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