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Question about a debt that's maybe 7 years old


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In 2006, I was 18 and got offered a CC from a company called Clout. They offered graduating seniors credit cards with $200 credit limits which was mine as well.

 

Hours of online searching gives me info that it was owned by M&I Bank which was sold in 2010 to Bank of Montreal. Same search says that all accounts were transferred to Bank of America in 2007 which seems about right. I didn't get a new CC or a new account, I probably didn't qualify for one with BofA, all I remember is not knowing how to pay my bill and reading online of people panicking with the same problem. 

 

Now, credit report shows Security Credit Services LLC reporting the debt, past due amount of $1270, open date of 09/09 with the OC of Maryland National Bank NA (MBNA). MBNA was purchased by BofA and the merger was complete 1-1-06.

 

Confused? So am I. 

 

So now, I'm getting a letter from National Action Financial Services for Security Credit Services LLC with MBNA as OC for an a balance of $2243. WTF? How the hell can a balance of an original credit line of $200 get that high? I've been sued twice for debt around the same time, maybe a few months difference on chargeoff dates, but it didn't even get to half as high as that. Also, why hasn't anyone tried suing me for this debt? Do you think there was just this huge screw up with papers and they don't have any paperwork to support it?

 

Anyways, should I DV them? What would you do?

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@mrdearborn

 

You were 18 in 2006?  Darn...you're younger than my children. 

 

A debt can increase because a JDB can attach interest to an account under most circumstances.  There are some stipulations.  The amount could depend upon how long the account has been in default and interest adding up.

 

When was your last payment?  

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@mrdearborn

 

If I'm not mistaken, the SOL for MI is 6 years. 

 

You have 3 choices.  You can send them a C&D, a refusal to pay (which is the same as a C&D but not all CAs/JDBs know this), or a DV.

 

If you want to nip this in the bud, send a C&D.

 

Now that I'm flipping through papers I discovered a FDCPA violation from July 2008.

 

 

The SOL on FDCPA claims is 1 year.   Even though you just now discovered it, you'd have to prove you could not have known about it before now.

 

In regard to your CR, is the OC or bank that took over the OC reporting?

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@BV80 SOL in MI is 6 years. I'm almost positive it is now time barred.

 

Would a C&D remove it from my credit report? That's really what I want.

 

How would one go about proving not knowing of the violation?

 

JDB is reporting on the debt. It's confusing I know, took me weeks to figure it out. Here's what it looks like to me, MBNA sold account to SCS LLC, but they never actually owned the account, account was transferred to BofA in 2007, one year after MBNA and BofA merged. Before it went to BofA, it was not related to MBNA, but to M&I based in another state which was sold to a bank in Canada. This is probably why they haven't even threatened to sue me, no judge could take this seriously.

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@mrdearborn

 

A C & D would not remove the entry from your CR. 

 

A negative entry remains on your CR 7 to 7.5 years from the date of first delinquency (DOFD).   The DOFD and the date of last payment can be the same, but not always.  For instance, if you missed a payment which caused the account to go into default, and your payments after that were small payments that never brought the account current, the DOFD would be the date when the missed payment was due.  Because those small payments didn't bring the account current, they didn't change the DOFD.

 

You could start by disputing the account as "not mine".  If the JDB never verifies, it will be deleted.  If they do verify, then dispute the DOFD.   Even if they're not reporting a DOFD, they'd have to verify that the account is within the 7-year period for reporting.   We'll go from there depending on what happens.

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@mrdearborn

 

Unfortunately, that doesn't matter.  If they haven't sent you a letter with the 30-day notice, finding their entry on your CR doesn't count.  A DV is only valid if sent within 30 days of that first letter.  Well, you can send it, but they don't have to respond.

 

I would first dispute the entry again with the CRAs based upon the DOFD.  If the JDB is not providing a DOFD, dispute that fact and state that the account could be past the 7-year reporting period.  If the JDB verifies it, then contact the JDB.

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