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SOLD account reporting a balance


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I hope it's okay to post this here... I posted on the Collections forum but it is pretty dead over there and probably the wrong place to post this anyway...

 

I had a credit card with US Bank.  I defaulted.  The debt was SOLD to a JDB in 2012.  I have since settled with the JDB  (I am pregnant and hormonal and the stress was seriously effecting me, so I decided not to fight it).  Anyway, my issue now is this:  US Bank is improperly reporting my debt.  They *STILL* show a balance owed to them, even though the debt was sold years ago.  I have gotten nowhere with them on the phone.  I just faxed over my credit report, a letter requesting they update my account to $0 and the letter from the JDB's attorney's stating the account has been settled with prejudice.

2 of the three agencies are reporting that account properly:  SOLD with a $0 balance.  It's TransUnion reporting it as "charged off/ $5400 balance".  US Bank themselves admit that US Bank shows a balance due.  I have tried talking to every "manager" out there, explaining that their reporting does not make sense and is not even legal but they say I have to fax my request over and give their dispute dept. 30 days to process.

 

My question is- what else can I do other than wait?  My husband and I are about to buy a house... this is the only item on my report causing an issue.  We have not opened escrow yet but will soon, and our time is obviously limited.  Anyone out there have experience with this?  Is there any reason US Bank *would not* update my report to show $0 due?  I am trying not to stress about this but obviously my hyper-emotional, hormonal & pregnant self can't help it right now.  :) 

Thanks so much

 

 

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Dispute it with the 3 CRA'S . Send them a copy of your settlement letter, tell them they need to report it as settled/paid. The JDB, and the oc entries. Send a letter with your settlement letter to us bank. Give them 30 days. If they don't correct it, I would seek out a consumer attorney, and sue them all for fdcpa violations, ( not sure but I think there is some other protection agency that applies to original creditor, but not fdcpa). If your buying a house, you can show the lender it was paid, but I would still pursue the other just because of the hassle. A nice claim would help your down payment on your house. :). Read the forum on how to do a 623 credit dispute. Congrats on the new little one yet to be!

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I've had this happen to me a couple of different times in the past. I use their lack of correct reporting as an opportunity.

 

For example, there was a Charge Off with GE Money for a large sum that they sold to a JDB. The JDB sued us and we ended settling for pennies thanks to our lawyer. For a while we intentionally didn't mind that the OC was reporting a balance on the acct. they sold because we were trying to lay low and not alert other potential collectors to an improving credit profile (i.e. keeping our "collection score" as low as possible).

 

Fast forward a year and we had become ready to improve our credit. We sent GE a letter via email telling them that they were in violation of the FCRA and offered them settlement terms to resolve the matter. The terms were that they were to pay us a few thousand dollars and delete all references to the negative account with all credit reporting agencies.

 

It took about 2 days and we received a reply from their legal team that our issue had been escalated. They did an internal review (took about 10 days) and sent us a snail mail letter outlining the account and denying our request for monetary compensation. But as a gesture of good will they deleted the account from all credit bureaus.

 

We never expected money. We just wanted the accounts deleted, which is a lot better than having it report as a paid charge off.

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