pinto

Sole Proprietor v. Consumer Debt - FCRA

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I am trying to understand my rights are concerning an old business debt as a sole proprietor and how to proceed forward.

At issue is a business line of credit I personally guaranteed for a sole proprietorship in 2000. I went out of business due to illness in 2003, made a repayment agreement with the OC in 2004 and after 6 months was unable to maintain making the agreed payment amount. Recently a debt collector came on the scene (calling my home and sending letters) and is now reporting this debt to the major CRB's. I had written the debt collector and OC requesting information regarding the debt and how they came up with the dates. They sent me a detailed statement which confirmed the first major delinquency leading up to a charge-off occurred in 2004 and subsequent minor payments (allegedly made thru 2008) never allowing the agreement/credit line to be caught up. I spoke directly with the debt collector briefly explaining the first major delinquency to the agreement with the OC occurred in 2004 and the credit bureau reporting clock has run out. They continue to report this on my personal credit file and have verified my dispute with the CRB's. NOTE: The written agreement is now beyond SOL for filing a lawsuit against me in PA.

Q:

As a sole proprietor am I protected by consumer protection laws, FDCPA, FCRA?

Since the debt was personally guaranteed by the individual and not the business is it under consumer protection laws?

Aren't the credit reporting bureaus used for reporting individual consumer information and not business information (which would be done thru D&B and the like)?

Edited by pinto
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From what you say, my response would be FDCPA No, FCRA, Yes.

BUT..... what exactly was purchased? If the actual debt (not the purpose of the credit) was for consumer purposes, then change the NO to a YES.

Example: You used the business card to buy an umbrella because it was raining and you left yours home. CONSUMER DEBT.

Edited by Flyingifr
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From what you say, my response would be FDCPA No, FCRA, Yes.

BUT..... what exactly was purchased? If the actual debt (not the purpose of the credit) was for consumer purposes, then change the NO to a YES.

Example: You used the business card to buy an umbrella because it was raining and you left yours home. CONSUMER DEBT.

I had spoken with an attorney at the FTC concerning this and he agrees with what you have said. FCRA applies. My task now is to get the trade line removed from the credit report. I am looking for input as to whether I should make the demand to remove from the credit report first with the debt collector and original creditor or with the CRB's. I am specifically thinking FCRA 605©(1) and 623(a)(5).

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If you personally guaranteed to the credit account that mean they used your personal credit to determine if you qualified. Since they determined you qualified using your personal credit and not the business you treat it as any other personal debt.

If you ever go in business for your self again get federal tax id number and a Dunn and Bradstreet number, maybe even consider LLC. And keep you business and personal credit separate.

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If you personally guaranteed to the credit account that mean they used your personal credit to determine if you qualified. Since they determined you qualified using your personal credit and not the business you treat it as any other personal debt.

If you ever go in business for your self again get federal tax id number and a Dunn and Bradstreet number, maybe even consider LLC. And keep you business and personal credit separate.

I have read posts regarding FCRA cases presented in small claims courts against debt collectors and original creditors are routinely bumped to federal court. I would only be seeking claims against the violations. What problems can I anticipate if I sue both Debt Collector and Original Creditor under FCRA regarding jurisdiction, any advice?

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Pinto do this

RE: Inaccurate Information Reported;

If you wish to resolve this matter, this will be your last opportunity to do so. The following item must take place immediately within 5 days from the tracked and verifiable receipt of this letter. Take whatever steps needed to completely remove your tradeline from all credit reporting agencies paper file and electronic Records.

• On October 05, 2012 Equifax Credit Reporting Agency investigation department sent me a letter verifying a dispute with your Trade Line on my credit report. I disputed xxxxxxxxxxx as inaccurate as I believe it was xxxxxxxxxxxx.. Please provide me with the documentation that supports your claim that the information provided toEquifax credit reporting agency is accurate. Such documentation must be provided within 30 days of this dispute, or inform me that you are removing the trade line, as underlined under section 623 of the Fair Credit Reporting Act. If none of the two is done timely it will be a violation of the Fair Credit Reporting Act. Conduct yourself accordingly.

Forward a letter to me via regular mail stating that whatever necessary steps needed to permanently remove my tradeline from the Credit Reporting Agencies files and electronic records have been resolved. I will accept nothing less.

Please be aware if these accounts are not taken care of within 5 days of receipt, I will file a formal complaint that includes Consumer financial Protection Bureau, American Collectors Association, with the Federal Trade Commission, the Office of Comptroller of Currency, Attorney General Office, the Better Business Bureau. Also note, that section 1681s-2(B) of the Fair Credit Reporting Act (FCRA) creates a cause of action for a consumer against a furnisher of erroneous credit information (Nelson v Chase Manhattan).

This Notice is an attempt to correct your records, and any information received from you will be collected as evidence should any further action be necessary. Also, be advised that a copy of this letter has been sent Certified Mail return receipt to both your office and the Consumer Financial Protection Bureau/ Collection Agency.

Thankyou and I look forward to your resolving this most expeditiously.

Sincerely

Edited by energizer
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Since the cra's have verified, send a method of verification letter to them.....

I had been in contact with a few consumer debt attorneys and all are in agreement w/ simultaneously writing all parties involved providing evidence supporting my FCRA claim. Will keep you posted as to the outcome.

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