Not sure where to start...

[Thenry]

Hello, I'm new here, so I apologize in advance if this post is in the wrong place. I really could use some advice, I've read through a lot of information but I'm still not sure what I need to do. Here's my situation:

 

Ten years ago, I opened a checking account with Wells Fargo. At the time, they offered me an overdraft credit line but I declined because the interest and fees were too high. They continued to offer me the overdraft credit line every time I was at the branch for a year. At some point around a year after I opened the account, they went ahead and opened the credit line anyways. They did not tell me and I did not sign anything.  Some time after that I overdrew my account, but instead of the flat fee I had come to expect there was a cash forward on my account to cover the overdraft. When I asked in the branch what this forward was from, they told me that it was an advance against my next direct deposit. It sounded strange, but I was twenty years old and fresh off the farm. I didn't question their explanation. In reality of course, they had forwarded the money from this credit line that I did not know I had along with a hefty fee. Over the next year, I overdrew the account a few more times, but not often or severely enough to clue me in that things weren't right. 

 

Because I had not properly signed up for the credit line, and did not know I had it, my address was not being updated along with my checking account as I moved. I did not learn that the account even existed for over a year when the fees and interest had cross the $2000 credit limit and  I started getting phone calls. I tried to make payments on it for awhile, but then I lost my job, couldn't afford it, and the more I thought about it, the less inclined I was to give Wells Fargo another dime. I asked them several times to produce the signed paperwork authorizing them to open the credit line in my name, but they never could. Unfortunately, I was too ignorant of the law and dirt poor at the time to do much about it.

 

Fast forward to last fall. I have been successfully rebuilding my credit, I have a good job, and everything is looking sunny. It had been years since any collection attempt had been made and the account was expected to be off my credit report in 2014 (7.5 years from my last payment). Until it showed up again, charged off by Wells Fargo and now held by LVNV Funding LLC. LVNV has made no attempt to contact me or collect the debt, but they are reporting it as being in "Critical Status". I had planned on buying a house within the next year, but this has thrown a monkey wrench in the deal.

 

What should my next step be? Should I send a request to validate? Since I never signed anything authorizing the debt in the first place, they wouldn't be able to produce the right documents, would they? Or should I wait until March 2014 when it'll be 7.5 years from my last payment, will the LVNV entry fall off my report then, even though they just started reporting in November 2012?

 

Again, I apologize if this is in the wrong place, or too long, or doesn't have all the relevant information, any advice would be extremely welcome!

 

PS, I should mention that I did file a dispute with Experian on the advice of the loan officer I'm dealing with at my credit union. My dispute was rejected because the debt IS in my name, and I can't argue that point.

[admin]

@Thenry - Have you ever contacted Wells Fargo and told them what you said here?  It sounds like fraud on their part.  If you don't get satisfaction, I would contact your state attorney general and the Consumer Financial Protection Bureau and tell them what happened.  I'm sure they would like to know.  

 

I think your best bet is to get Wells to pull the account.  You could also press the issue with LVNV legally as far as suing to get it off since they don't have any paperwork showing this is your account.  I know that sounds extreme, but it may come to that.  

[Thenry]

I tried several times to get Wells Fargo to show me the paper I signed authorizing the account, but they never did. I was unfortunately too ignorant of the law and my rights and too poor to fight it too hard. Now I'm in a position of not knowing where to go with it. One one hand, i need this gone, and if I knew I could trust LVNV (Internet says many very bad things about them), I'd be willing to just pay it off or try to reach some kind of accommodation, but after 6 years of refusing to pay on principle (I've been financially capable of paying it off for awhile now, I just haven't felt any real obligation to do so), it's a hard fight to just give up on.

 

I was under the impression that since WF had sold off the debt, they were out of it and I had to deal with LVNV now, is that not the case? WF may be lying cheats, but they are certainly more credible than LVNV seems to be.

 

 I do thank you for your reply even though I broke the rule about vague topic titles

[admin]

I was under the impression that since WF had sold off the debt, they were out of it and I had to deal with LVNV now, is that not the case? WF may be lying cheats, but they are certainly more credible than LVNV seems to be.

 

 I do thank you for your reply even though I broke the rule about vague topic titles

@Thenry - You never know, they might be willing to deal with you, especially since it seems like an error (or dare i say fraud) on their part.  If you can get them to say they shouldn't be collecting from you, LVNV has to drop the collection efforts. 

 

The good news is that this should fall off your credit report soon since it's past 6 years.  The bad news?  Iowa has a 10 year SOL.   Of course, they would have to actually have something in writing.  

[Thenry]

Thanks for the info, I'v submitted a complaint to the CFPB and my attorney general's office. Depending on where that goes, I'll contact Wells Fargo next. I have a plan, and thats progress!

[PayAfterDeletion]

It looks like you sent one letter to dispute the account, I would continue to dispute but change it up some. Check all facts on your report. Balance, Open Date, Date of last activity, status, etc. - Inorder for an item to be on your report it must meet several rules.

 

1 - It must be true

2 - It must be accurate

3 - It must be verifiable - You said they haven't sent you anything

4 - It must not be past statute of limitations

 

Most people give up too quickly, just change it up and keep going after it. Don't forget previous advise about contacting CFPB and Attorney General

 

Danny

[Thenry]

Well, CFPB really helped, thank you so much for the suggestion. I didn't get everything I wanted, but I think I got enough to be moving on with. Wells Fargo said that since I had made payments on the account, I had agreed that I owed the money. Which, ok, I don't like it, but I can't argue with it. Big bank sent me a big scary letter that says "pay us or else" and I paid them. I made a lot of bad decisions when I was 21, add it to the pile. However, they were unable to provide the signed agreement authorizing the debt, or prove that I was made aware of the debt prior to the first collection attempt. Because of this they will no longer be reporting it on my credit report.

 

Now, I need some more advice. First, LVNV was NOT the original company WF charged the debt to. That would have been Hilco Receivables. I never heard from them or knew they even had the debt. I have no paper trail at all that leads from WF charging off the debt to LVNV claiming it (not to mention that it seems to have grown about $600 since WF had it). All of which may or may not matter because I pulled my credit report for this month and neither LVNV or Wells Fargo are on it. Is this an oversight? Can I expect LVNV at least to show up again soon? Did it have something to do with my complaint (In which LVNV was named, but never responded or contacted me)? Might it be possible to move quickly and get my home loan in order before it shows up again?

 

What should my next step be? I had planned on sending LVNV a validation request, but I'm hesitant to provoke them now that they are, at least momentarily, off my report...

[CordusAdmin]

Is that debt not showing up on ALL three credit bureaus?  If not, I would say let it be.  If is shows up late, send a DV letter. 

[Thenry]

I pulled all three to be sure and they are all clean of my last remaining problem accounts. I have no idea why LVNV stopped reporting/skipped a month, but I'm thinking this is one of those instances where you don't look a gift horse in the mouth, you saddle up and ride.

[CordusAdmin]

@Thenry - yeeee-haw......