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TR sent letter of update, what now?


vision2014
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OK, my first round of letters have now all had responses and I am ready for round 2.  In the process of disputing through CRA, I received a letter directly from HSBC.  it says:

 

"We have received your credit bureau dispute regarding your HSBC account. ... This letter is confirmation that we are currently reporting your account to all relevant major consumer reporting agencies as follows:

-Account is sold.  Any balance that may have been due was transferred in the sale.

As of April 13, 2011, we no longer own this account.  Please direct all future inquiries regarding this account to the new legal owner at:

United Debt Holdings."

 

So my questions about how to handle this are:

1)  My acct with HSBC was settled for less than full amount back in 2008 or 09.  Can they sell that remaining amount that they wrote off? (they would have received a tax deduction on that, yes? And I had to pay taxes on the cancellation of debt.)  I no longer have an obligation to pay it back (correct?), so how can they sell it?

 

2)  what are my options for disputing now that HSBC no longer owns this account?   Can I dispute any of what HSBC reports now, or do I have to use the United Debt Holdings TL when writing the CRA's?  What is the best path in your educated opinions?

 

As always, thank you for your great advice and suggestions.  This whole process has really lit a fire under me and my husband to tweak our budget and save more aggressively to realize our goal of owning another home in 2015.

 

 

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Here's a bit more info to add to this situation:

 

I checked my report further after writing my above inquiry and found that the company that is reporting on my CR is not listed as "United Debt Holdings" as my letter tells me it should, it is "1st Financial Investment Fund Holding" and they started reporting that my account is in collection as of Dec 2013.  I don't owe them any money because this account was settled back in 2009, and I was never informed of this "sale" and new reporting until this past month.  How can they be reporting on me in this way? and What can I do about it?

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Ouch.  Do you have your settlement from HSBC in writing?  Does it say they won't sell the balance?

 

If the answer to either question is no...you've been had.

 

As to whether they received a tax deduction...accounting is not that simple.  They may have taken a charge against accrued earnings, but that's not the same.  Besides, the IRS says you owe taxes on the "found income".

 

I'd suggest you DV the new TL...

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Thanks everyone.  I'll have to check the files to see if I have anything in writing.  We were very new to this whole process when we started the debt settlement process back then (wished we had found you sooner!!).  We used a mediation company who negotiated our settlement amounts, so not sure if we ever got anything from the TL at all.  I remember a lot of phone calls, but no paper.  Still, I keep everything up to 4 years ago.

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Well, files checked and nothing in writing.  I have drafted a DV letter to the collection agency, 1st Financial, listed on my CR.  I have, already, disputed the original TL from HSBC as "not mine" on all CRA's, and that's what prompted the letter from them (HSBC was verified on all CRA's).  

 

I also disputed the 1st Financial as "not mine" on the 2 CRA's where it appeared (EX & TU) and it was deleted from TU (yay!), and updated on EX.  The new entry on EX shows the account in collection as of 12/2013.  Should I redispute this with EX, along with doing the DV, and if yes, using what reason? and lastly, should I ask EX for method of verification re: 1st Financial in addition to redisputing, or instead of it?

 

Thanks.  This can get a bit confusing and tedious, but I feel so much better when I see those deletions!!

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Items reported to consumer credit files must meet THREE — not just one — standard: Items must be entirely accurate. They must be fairly reported, pursuant to many laws regarding how credit accounts are handled long before they are reported to the bureaus. They must be entirely substantiated, i.e., the information furnishers are obligated to back up their reporting with real documents.

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OK, update:  I checked further electronic files and found the letter offering the settlement from MIG Capital Mgt.

 

It says:  "If we receive payment by May 23, 2012, in the amount of $xxxx.xx, we will consider this account balance settled in full.  We also agree that by paying this amount, you will no longer be subject to further collections and this account or alleged  remaining balance will no be transferred or sold to any other agency or successor.  Upon receipt and verification of payment, you will be provided a receipt indicating a zero balance on this account."

 

It lists the original creditor as HSBX and the client as First Financial investment fund VI, LLC.

 

I sent a DV to First Financial last week.  How does the discovery of this letter change my standing with the CRA's and now with my DV on 1st financial?  And, no, so far, I can't find my receipt showing zero balance.

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I'm not sure, I'll have to call bank.  Probably not.  If I recall correctly, all our settlements were done by direct debit (the safest way for creditors to ensure no bounce status) or cashier's check, which they may have copy of.  I can't find any more info in my files, unfortunately.  I did however, come across the contact info for the debt settlement company, CreditAnswers in TX.  I will give them a call this coming week to see if they still have access to our files.  Maybe they can provide proof of payments and settlement offer letters.  Crossing fingers.

 

Just came across another issue with our settlement, hubby's scores are in mid 500's, think a lot may have to do with Capitol One card showing a bal due of $14,800 and the same amount as past due.  I have recently disputed that the amount is incorrect, as it should be "0" because it was settled.  Hopefully, I can find the settlement letter or proof of payment as settlement to get this off.  Thanks for the suggestion!

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