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Charged Off Accounts...


mysticalpassenger
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I was a victim of ID theft. Fortunately, I have been able to get it all removed from my Credit Report. Few credit card companies charged off the accounts and few removed/deleted as fraud.

I would like to know if I apply for a credit card with a company that has charged-off my previous accout (didn't delete it as a fraud) then WILL I be able to get approved for a new one? How long credit card companies keep records of their charged-off accounts?

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All depends on the company and/or bank. Some black list you forever, some just want your money, and others no way to tell what formula. Since there is no law, other than discrimination, they must follow in deciding who to extend credit to, there is not a listed formula for each bank.

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If you have been a victim of fraud the OC shouldn't hold that against you, but I have heard about nightmares with regards to clearing it up on you CRA and it taking a very long time, anyway you are protected under the FCRA, so if they are committing violations then you may have to file a lawsuit to get things removed, build your paper trail, I am searching Charge offs and Blacklisting, but its a very grey area, some company Blacklist you forever orthers don't, some up to 7-10 years, look up on this the forum which CC blacklist. Well good luck this forum is very helpful. :)

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I think the OP's issue has to do with wanting to apply for credit from a creditor the ID thief once used with the OP's name. They would not see this issue on a credit check, since it has been removed from there, but could very well see it on archive records or deactivated accounts.

The problem is, the creditor may well decide there is too much risk in granting this credit based on not knowing if this application is yet again an instance of ID theft. They know that ID thieves have the OPs name and other information to make a good appearance as the OP. And, unfortunately for the OP, such a decision would not be a violation of any law I am aware of (there are some that apply for a number of other reasons, like gender and race).

This does raise an interesting question. Is the victim of ID theft still being harmed as a result of the ID theft? What if the thief used the information to illegally get credit over a vast range of sources, and although cleared up now, each of these sources chooses to not grant any credit because of the risk this is a new instance of ID theft? How many companies doing this enters the threshold of harm?

But here is another point. I'd argue that ID theft is substantially possible because these credit granting companies themselves are too lax in properly vetting each application. The consumer who is the victim of ID theft is additionally a victim of financial institutions that let ID thieves exploit their application processes. IMHO, there is a shared culpability between the thief and the granting institution when such a thing happens.

Edited by Torden
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I was a victim of ID theft, the Original Creditors deleted their trade lines from my credit report, but a couple of them sold the account afterwards to a JDB.

1) One account has been sold twice. I sued both companies. First to Atlantic Credit, now to Asset Acceptance. Luckily neither company reported.

2) The other was sold to Portfolio Recovery. They never responded to any of my written correspondences. Then they decided to report to all three CRAs. I sent them one last written correspondence. If they do not take corrective action, I am filing suit.

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I was a victim of ID theft, the Original Creditors deleted their trade lines from my credit report, but a couple of them sold the account afterwards to a JDB.

1) One account has been sold twice. I sued both companies. First to Atlantic Credit, now to Asset Acceptance. Luckily neither company reported.

2) The other was sold to Portfolio Recovery. They never responded to any of my written correspondences. Then they decided to report to all three CRAs. I sent them one last written correspondence. If they do not take corrective action, I am filing suit.

Yep, baaaasically. This is the route I too have had to go.

The thing is, the JDB's buy ALL accounts receivable, and they don't sort the ones that are fraud from the pool that they buy. Sue. The. F*ckers! Suing should be moved up from step 3 to step 2, particularly after you've cleaned everything up.

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Yep, baaaasically. This is the route I too have had to go.

The thing is, the JDB's buy ALL accounts receivable, and they don't sort the ones that are fraud from the pool that they buy. Sue. The. F*ckers! Suing should be moved up from step 3 to step 2, particularly after you've cleaned everything up.

If you filed a police report for the IDT, and sent the OC a copy of the report and acknowledgment from the police along with your statement that the account is fraud, and if they then sold the account without this information (because the DB says they have no such information), then also sue the OC for libel damages that resulted from their failure to include all known facts about the account.

OCs need to wake up about IDT, and not just sweep it under the rug by selling off to JDBs. They are likely partially, and possibly substantially, liable for the IDT happening as a result of their failure to properly check identity credentials. The blame is not just 100% on the person when pretended to be you to get something from the OC.

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What is OC? I did file a police report. They just wrote "Identitiy Theft" on the report and no other details. I am getting really upset because I have provided substaintial amount of documents, and the credit card company's rep. know that it was a fraud. Yet, they would still ask for stupid stuff/document that I can't. The bank where the account (checking) was used is not even in the business anymore. I really wanna make these credit card company pay now for putting me through all this non-sense.

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What is OC? I did file a police report. They just wrote "Identitiy Theft" on the report and no other details. I am getting really upset because I have provided substaintial amount of documents, and the credit card company's rep. know that it was a fraud. Yet, they would still ask for stupid stuff/document that I can't. The bank where the account (checking) was used is not even in the business anymore. I really wanna make these credit card company pay now for putting me through all this non-sense.

You need to sue ALL parties involved. If you can get to a law library, you can draw up the lawsuit yourself and save mucho-cash.

I have had to go to court repeatedly to clear up my credit.

Identity theft "departments" are complete bull, in my view. Some are more forthright than others. The helpfullness of these departments depends on when you find out about the identity theft. If your police report isn't dated the right date, or within a certain period of time, you're f*cked. For MOST ID theft victims, they learn about the fraud 1-2 years into the theft of their identity. At this point, you're basically up ****s creek, because you've exceeded most bank/creditor timelines to repor the fraud to recover your losses, so this makes dealin with them awful.

The only department you need to be concerned with is the LEGAL dept. This is the ONLY department with the ability to intervene and take action on behalf of the company. "Identity Theft" departments are --largely -- just a precursor to the legal dept, and usually anything the IDTheft people end up doing to help you, is only AFTER they consult Legal.

This is WHO you sue:

1) The OC (original creditor). They KNEW that the account was fraud and yet somehow allowed it to be sold to the JDB. (SIGH!!! I can't believe I'm typing this, but in this case the JDB is every bit a victim as you are.)

2) The JDB (junk debt buyer). They were defrauded. But you know what? They DID NOT do their due diligence to determine if the account they purchased was, in fact, a collectible account, which is their obligation under certain parts of the FDCPA. In my case there were multiple JDB's. I have had to sue each one of them. Most offer to settle. The ones who didn't settle lost in court. Quickly.

3) The CRA's for reporting this info. Sue under the FCRA.

Sue to collect all of your costs -- time off from work, registered letters, inconveniences, inability to get credit -- the whole 9 yards. Did you miss your kid's recital having to draft this lawsuit? That's psychological damage and grief. Loss of consortium (if youre married) is also a valid way to collect damages. It sounds frivolous, but this is serious. If you want your financial life back and for companies to stop doing this, you need to hit hard at their wallets.

Most will offer you a settlement. Ratchet it up.

Get letters to ensure the banks/card companies do not report you to chexsystems/CRA's or remove existing data about you from that system. Get everything in writing. MAke sure it spells out the following in no uncertain terms: "The debt obligation (credit card, loan, whatever) is the result of identity theft and/or fraud. These are the steps this institution is taking --step A, step B, step C."

(I'm not a lawyer, just sharing my identity theft experiences as a pro se litigant. Ask a lawyer for your own scenario. People on the intertubes are not lawyers)

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Amazing information provided by you and thank you so much for that. Actually, I left the US and then I came back after like 5 years or so. Then, I found out about it. I went through some drag to get everything done but I didn't give up. Filed the police report, kept contacting companies, sent them letters and documents. I was able to get my CR clean, got rid of all the collections. It's just that there are couple of companies who have closed the accounts as Charged-off. I am trying to have them close as frauds so I won't get rejected if I apply for any kinda loan or credit with them. Would you be willing to assist me in filing a suit against the company? We can discuss this matter in detail. Your reply is really appreciated and I will look forward to hear from you.

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For MOST ID theft victims, they learn about the fraud 1-2 years into the theft of their identity. At this point, you're basically up ****s creek, because you've exceeded most bank/creditor timelines to repor the fraud to recover your losses, so this makes dealin with them awful.

If it's a case of an account that really is yours, but something was taken out because of ID theft (or the classic check forgery, for a checking account), you should notice this on your monthly statements and that would be well within the appropriate time frame.

But if it is a case of someone opening an account in your name and using it themselves, where you don't find out about it because they never sent anything about it to YOU, then you most certainly have justification for it being much later in time.

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As far as settle vs. fight in court...

I have chosen to settle twice and go through court for judgement twice. Here are my reasons:

1) in the cases of settlement, we negotiated. What I had to negotiate with were: A) Case law and references to other similar settlements. B) Statutes printed and in a folder with me so I could cite how much the statutory penalty is for their infractions C) Receipts, photocopies, and a log of how much time I spent on my case as well as my hourly wage to substantiate where my numbers came from in regard to damages.

Armed with this, the settlements that I secured were damn near (as in, within $1000) of what I would have gotten if I let the rest of the case wind through court. A big mitigating factor in my choice to take these settlements over continuing with court were my finals, a wedding, and a move to another nicer couch/apartment. (it sucks being a broke student with fraud on your CR, ya know?) The final number we agreed on was substantially more than they initially offered.

2) in the case of letting the court decide, I chose this route because they were d*cks. Smug little fresh-out-of-law-school pricks with little life experience. It felt good to crush their hopes of being a rich lawyer for a JDB (hopes they should never have had anyway, because the new hires only get paid $50-$60 per hour to work for these firms, and they're part-time at that). I ended up missing a day of college for this, and a 5-point quiz too. But, kind of really worth it! I won. I also got the professor to count my court briefing as an extra credit assignment (since I couldn't make up the quiz), so I didn't really lose out there.

I'd say, just figure out which works for you, what motivates your fight. I see it as a natural extension of occupywallst, but better and more effective.

Edited by MehtaMar
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