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reporting of car loan after BK7 discharge


Delta98
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I had a car loan with Wachovia Bank that was discharged in a BK7 Oct. 2008. Wells Fargo Bank acquired Wachovia and in 2010 they placed an account on my credit file for this loan with a new account number and it said "included in bankruptcy filed Aug. 2010. Then they keep updating this account and it now says "bankruptcy filed Mar.2011". I have repeatedly disputed this account with all 3 CRA's and the date will change but none of them will remove this second listing of the account because it has a different account number. Then when wells Fargo updates the account the dates go back to being wrong. I have disputed this directly with Wells Fargo and they said that they would take care of it but nothing happens. This is causing my FICO score to stay very low and I have had to pay very high interest rates because of this.

I don't think they should even be reporting this account at all, as I have never had a loan with Wells Fargo. The loan was with Wachovia and discharged in Oct. 2008 and that loan is being reported correctly on my credit file.Wells Fargo is trying to tell me that they have to report the new account number but I don't think that is right. I am thinking that I will need to sue to get this resolved but I need some help in deciding exactly what violations I am suing for and if I need to hire an attorney to reopen the bankruptcy or if I can do this myself.

Thank you for your help

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There is no question that Wells Fargo is not reporting correctly.

Look at the stickies in Bankruptcy Q & A section and read the posts by LadyNRed that discusses how the tradeline is to read after BK: zero balance, iib and the date of your filing.

If it were me, I would get in touch with your BK attorney and have him send a letter to Wells Fargo outlining their misrepresentation of your tradeline and the proper remedy (remove the tradeline). If Wells doesn't remove the tradeline, then sue them for violation of the discharge injunction. It will get you lots more than a FDCPA violation any day of the week - just prove your damages. If your attorney won't sue them, then find one that will - a NACA attorney will.

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ok, I will do that. Should Wells Fargo even be able to place this account on my credit file so long after the discharge? They are trying to tell me the need to report it because of some agreement with the credit reporting agency. I don't believe that.

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Did you sign a reaffirmation agreement or surrender the vehicle?

I don't know how they can even enter this as a new tradeline if you surrendered the vehicle in the BK.

Did you have an attorney or did you file your BK pro se?

BTW, the creditor would be responsible for your attorney's fees in this type of case.

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I am going to bet that you have been talking to some lowly customer service rep who has no idea what is going on, the seriousness of it, or due to their low wage, really cares. You need to talk to either the legal department or bankruptcy department. Someone there will realize what has happened and will be able to correct it.

First off, there should only be one listing. They can change the bank name and account number BUT it must still say iib, have a 0 balance, and show the date of the BK filing. There however can only be one tradeline reported, Wachovia or Wells Fargo. Not 2. BK Judges are stating to go after this because many banks are using this method to force people to pay for debts that they otherwise do not owe. There was a Business Week article about that about a year or 2 ago. Also, no credit reporting agency agreement can supersede Federal and State laws.

If you have a lawyer, as Denita said, have them write a letter to Wells Fargo indicating that they are violating the FCRA as well as the BK laws and that there is already damage to sue for (higher interest rate can be considered damage) so they need to fix their error and then contact him on how to mitigate the damages. If you did your BK pro se, then find out the address for Wells Fargo BK department and send the letter yourself.

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Even after WellsFargo took over Wachovia, they have no legal right to put a new tradeline on your report in their name at all after the discharge.

Firstly, they cannot remove the Wachovia tradeline or update it. WellsFargo's agreement with the CRAs doesn't give them authority to change tradelines not in their name.

Second, since you never had an account with WellsFargo under any account number, it is false information to report it even if they list it IIB, zero balance with the correct dates. The account number never existed prior to the discharge nor did your liability to WellsFargo.

So here's what you do:

Get WellsFargo's corporate office address and send a certified letter to their address ATTN: LEGAL DEPARTMENT. In that letter outline the reasons why the tradeline is a violation of the FCRA and the permanent injunction per above and give them 30 days to correct and send you verification of the correction. Include a copy of the page of the credit reports showing the error highlighted. Blackout listings that are not related.

If they do so, check your credit reports after 45 days to verify correction. If the reports are not correct your issue is with the CRA(s), not WellsFargo.

If WellsFargo ignores your request send a second certified letter to the legal department with a copy of the first letter and a copy of the certified card and plainly tell them that this is a serious matter and they need to respond with all due haste. Give them 15 days.

During all this keep copies of everything in a file. This is your evidence of willful violations if they keep on ignoring you and will form the basis of your complaint to the bankruptcy court for punitive damages and injunctive relief.

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Get WellsFargo's corporate office address and send a certified letter to their address ATTN: LEGAL DEPARTMENT. In that letter outline the reasons why the tradeline is a violation of the FCRA and the permanent injunction per above and give them 30 days to correct and send you verification of the correction. Include a copy of the page of the credit reports showing the error highlighted. Blackout listings that are not related.

It is better to use white.

Cut out white cardboard (thick) paper to cover unrelated information. All they should see on the page(s) is their TL and identifying information they will need. Make the photocopy and verify that none of the unrelated information is coming through. If some does come through, repeat the process by covering the copy to make a second generation copy. Then in those white spaces, draw boxes and write in "REDACTED".

It is hard to verify information leakage in areas of black on photocopies. I have been able to recover information where people believed they blacked it out and made a photocopy from it. White is not quite as easy to block (hence the need for a thicker cardboard paper), but it is much easier to see what is getting through, allowing you to correct the issue.

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  • 4 months later...

I've just had a similar thing happen to me with my mortgage. I filed and was discharge under chaper 7 back in 2008. My mortgage was included. However I still had equity in the home so I continue to pay on time. Fought with BOA to stop updating the account after discharge. It was difficult but finially they stopped. Now they sold the loan, or possibly only the servicing of it, to Greentree financial. They told me in advance and I started paying Greentree. I'm ready to refinance and I've been working hard to get my score up. Since I paid down my only credit card six weeks ago I thought I'd check my FICO score to see if it went up. I was shocked to find that it dropped 50 points. Bigest drop since filing bankruptcy. I called My FICO to see what they thought was going on. They showed a recent derogatory mark on my report, Greentree reported the account anew and put a closing date date on it of Sept. 2011. My question is, Isn't that a violation of the banruptcy order? also, The date is obviously wrong, would it even matter if they changed the close date or removed it? They bought the lein rights or the servicing rights but I have no liability to them so they shouldn't report the account on to the CRA, right?

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