quisait

charged off account showing balance owed??

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Hi guys, I hope someone can help me.

Long story short:  My husband and I are trying to buy a house and there is one final issue that needs resolving to get the loan.  I had an old debt with US Bank that was charged off in 2011 and sold to a JDB in 2012.  On Experian and Equifax it shows as charged off/sold with a $0 balance to US Bank.  On TransUnion, it shows it was charged off and shows a balance of $5400.  I called US Bank and they said they do in fact show a balance due, even though the account does not belong to them.

The account was settled with the JDB earlier this year.  (Something I wanted to avoid/go to court over but I decided it wasn't worth the stress so I just paid them off). 

My issue is TransUnion needs to show this account with US Bank as reporting $0.  Is there a form letter I need to use?  I have been googling and I haven't found anything to be very helpful.  You would think they could just update it over the phone.  I don't owe them (or anyone!) money.

What should I say in my request and what should I include?  Please help. 

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You can try the "623 Dispute Method" (link at top of page).

 

Unfortunately, this isn't going to get fixed quickly.  Did you settle with the JDB for les than what US Bank said you owed?  If so, you may owe taxes on the USB debt.

 

And...since CAs don't buy debts...JDBs buy debts...CAs just do the hassling...do your EX and EQ reports use the "magic words" SOLD TO ANOTHER LENDER?  If not, the CA may have stiffed you...

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Oh sorry, it was a JDB that bought the debt, not a CA.  I did settle for less than what was originally owed.  About 40%.  They settled with prejudice.

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Equifax:  "Account Transferred or Sold"   shows $0 balance
Experian: "Transferred to Another Lender or Claim Purchased"  shows nothing under balance

 

TransUnion states: "Charged off as bad debt"  shows $5400+ balance

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Then, technically, USB is violating the FCRA by not reporting the true nature of the debt.  You could try the 623 method or see if you can get the CFPB involved.

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Alright, so I faxed over a request to US Bank stating the account had been SOLD to PFR, and has since been settled/paid off with PFR.  I told the rep on the phone (a "manager") that reporting a balance on a sold account was illegal and of course that got me nowhere.  She just kept repeating that I needed to fax my request over, include a copy of my credit report and a letter from PFR stating the account was settled in full.  So I did.  And now I have to wait 30 days to make sure they update their records.

This so so ridiculous and I am so irritated.  Has anyone else dealt with this before?  Is there any possible way to expedite my request?  I am not in escrow yet but expect to be soon...  I do have some time on my side but the sooner this can be resolved, the better.  The woman I spoke with on the phone stated their Credit Dispute department does not take phone calls, only receives faxes.   UGH!!!  

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Take the time to read California Civil Code 1785.25, 1785.26., 1785.30 - 1785.36.  Pay close attention to 1785.31.

 

Also take the time to read California Civil Code 1788.1 et seq.  This is California's collection law, known as the Rosenthal FDCPA.  You'll find that in California, the original creditor is liable under the statute, if they attempt to collect their own account.  If you need more info on California, let me know by PM.

 

When you submit your application for a mortgage, they turn your CR over to another department or affiliate, who will then go through the CR, and call you with any questions.  They will require that trade line to show the zero and sold notation.  But, if me, I would include a copy of your receipts cancelled check, whatever, then, point out the other two CRA's reporting it correctly.  This will support your claim.  True, there is no guarantee they will not still require the correct info, but, all they can say is no.  At the same time, they may consider it and continue Escrow, so it is not slowed, or stopped.  When we began our Escrow, we had one item still showing assigned to a CA, but, I showed them of the dispute, letter from OC showing error was on them, and was in process of being deleted, so they continued Escrow. Just be sure and ask for a 45 day Escrow, or more, if you can.    Ours was a 30..  Just remember, when the lender pulls your CR, it will be from all three combined.  Your score from each CRA will be on one page.  All other info will follow.  They are easy to read.

 

Another thing you can do since you haven't started the purchase.  If you haven't pulled your free  annual CR, do so now for all three.  Go through each item, compile a list of disputes, then, submit them to the CRA's.  All disputes must be resolved within 30 days, plus 5 for snail mail, or by email.  What you are correcting is the many names that show.  When I did ours years ago, wife and I each had at least a dozen different names, including misspelling.  If your legal first name is Robert, you'll likely find Bob, Bobby Bobie, Rob, Robbie, etc.  My last name is misspelled constantly.  There are 16 different ways to spell my last name.  Update previous addresses.  And, of course, fix any item not reported correctly..  It just shows a cleaner report when they pull it and begin the process.  Ours went through Countrywide, and the place that went through our CR's, was in Texas.  Forgot the name of it.

 

Lastly, California statutes take precedence over federal.  Use them where necessary.  Both the federal FDCPA and FCRA state this.   Read FDCPA 816, for an example.

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