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Ripping my hair out frustrated!!!!!!


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I am soooo frustrated with this whole situation and desperately need help!!!

I am trying to buy a house and they pulled my credit report and a collection came up that I never knew about. Yes, I did do business with this company, but I left on good terms with zero balances. The creditor is the Housing Authority in Colorado Springs. I had lost my job in 2005 and applied and received housing. I paid a discounted rent until I could finish college and find employment. In 2008 I accepted a job in Denver so I wrote them a letter saying thank you for helping me and I no longer need assistance because I found a great job and I am transferring to Denver. I moved out of the apartment I was in, received my security deposit back even, and everything was settled with housing and I had a zero balance.

Now, 7 years and 8 months later, I find a mark on my credit report saying I owe $9,255!! Ouch! And of course I can't move forward with my house purchase with this on there. So I of course start with the creditor. They send me a letter dated June 4th 2008 saying I became delinquent in March 2007 and I owe $653 from 3/2007 to 5/2008. I asked them why and they said because I didn't report income to them and was working at the job I left to Denver for. They have a job offer letter saying I worked there from March 2007 but I started that job in June 2008 which is why I left. They completely have the wrong dates. I sent them my income taxes from 2007 and 2008 showing exactly when I started working at that job and they are just playing dumb because they know I want this deleted from my credit report ASAP and I'm gonna lose this house because of this.

So I sent a dispute letter to transunion with all the evidence on October 28th. I sent it certified return receip requested. They received it on November 4th. On November 5th they updated my credit report as "verified, no change"!!! I just got the letter today and called them. They told me that they didn't look at the evidence that I sent in because it's not up to them and they just report what the collector says. They re disputed it for me today but I'm pretty sure the collector is going to update it again tomorrow saying it's accurate. I asked Transunion about the 7 year reporting and they said yes, they can only report it 7 years from the date of delinquency. So I asked the guy why he didn't look at the statement I sent to them showing the date of delinquency as March 2007 and again he says it's not up to him to look at my evidence and its up to the collector. Aaaahhhhhhhhhh!!!

So I call back the collector and they say that the money is still owed to them so they can report it as long as they wish until they get paid.

I reported both the collector and Transunion to the CFPB today. I am pissed!!

What do I do? Any advice? I need this removed from my credit report like yesterday so I can get this house!

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So I sent a dispute letter to transunion with all the evidence on October 28th. I sent it certified return receip requested. They received it on November 4th. On November 5th they updated my credit report as "verified, no change"!!! I just got the letter today and called them. They told me that they didn't look at the evidence that I sent in because it's not up to them and they just report what the collector says. They re disputed it for me today but I'm pretty sure the collector is going to update it again tomorrow saying it's accurate. I asked Transunion about the 7 year reporting and they said yes, they can only report it 7 years from the date of delinquency. So I asked the guy why he didn't look at the statement I sent to them showing the date of delinquency as March 2007 and again he says it's not up to him to look at my evidence and its up to the collector. Aaaahhhhhhhhhh!!!

 

Unfortunately TransUnion is correct on this one.  They merely report what they are furnished they cannot change a trade line based on what you send them.  

 

So I call back the collector and they say that the money is still owed to them so they can report it as long as they wish until they get paid.

 

This is wrong and possibly a violation of the FDCPA.  Even if you did default in May 2008 they cannot report past May 2015 even if you do still owe the money.

 

What do I do? Any advice? I need this removed from my credit report like yesterday so I can get this house!

 

 

It is a little late to say this but this scenario is EXACTLY why you do not get into a contract on a house without pulling your credit report first.  However, that ship has sailed.  

I would start with going www.naca.net and finding a consumer attorney because you may need one if the CFPB does not resolve it.  Many will do a first consult for free.  Call one and find out how you can accomplish this the fastest but be prepared there may not be a fast route and you may have to walk away from this house.

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Well, thank goodness your good fortune of finding this site and reaching out for help here will lead you to the best end results possible, provided you follow through step-by-step.

Remember, there are no absolutes. That "perfect home" may well be making way for an even better housing situation for you, with a lower payment / more discretionary income to start a side business, or take a larger annual trip, or equipment to expand a hobby into a cottage enterprise.... or, to discover a gem in a location thought impossible.... so many silver linings! I look forward to learning what yours is!

Above all else, Don't Panic!

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I don't even live in colorado anymore so this is even more frustrating! I would love to sue these dumbasses but the 18 hour drive doesn't pan out well with my demanding job and children in school. I may draw up a civil lawsuit myself and fax it to them to see if that scares them into deleting it. I never do get the easy ones!!

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I would look at older credit reports to see if this was on there before, it sounds like a scam. It sounds like they got info out of a file, and then they parked an entry on your credit report. Sounds like extortion to me.

 

Get a letter from the housing authority that the account was clear when you moved.

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I would contact an attorney who does FCRA work.  (look up one on naca.net)

 

This is an FCRA violation to report a collection account that is more than 7.5 years old.  I would file suit against the CA and Transunion and any other CRA that verifies a debt too old to report under the FCRA.

 

Most attorneys will take this type of case free to you, since the FCRA allows the collection of attorney fees from the other side.  I would expect that you may get a fairly quick settlement that will include removing the account from all your reports plus up to $1k in your pocket to boot.

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I don't even live in colorado anymore so this is even more frustrating! I would love to sue these dumbasses but the 18 hour drive doesn't pan out well with my demanding job and children in school. I may draw up a civil lawsuit myself and fax it to them to see if that scares them into deleting it. I never do get the easy ones!!

 

Just contact an attorney in CO.  You don't have to drive there and you can send your attorney all information through email or fax.

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Unfortunately TransUnion is correct on this one.  They merely report what they are furnished they cannot change a trade line based on what you send them.  

 

 

 

 

That is not correct. 

 

It is what happens in practice, but CRAs may not simply rely on furnishers when you dispute.  That is called "parroting" and does not comport with the CRA's "reinvestigation" obligations under the FCRA.  See the Cushman case for an explanation.

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1681c(a)

 

(a) Reinvestigations of disputed information

(1) Reinvestigation required

(A) In general

Subject to subsection (f) of this section, if the completeness or accuracy of any item of information contained in a consumer’s file at a consumer reporting agency is disputed by the consumer and the consumer notifies the agency directly, or indirectly through a reseller, of such dispute, the agency shall, free of charge, conduct a reasonable reinvestigation to determine whether the disputed information is inaccurate and record the current status of the disputed information, or delete the item from the file in accordance with paragraph (5), before the end of the 30-day period beginning on the date on which the agency receives the notice of the dispute from the consumer or reseller.

 

You definitely need an attorney for this because based on the copy of your credit report, the account is being reported by the housing authority, not a collector.  An attorney would know if there's a private right of action against the housing authority and whether or not they could be included in a lawsuit.

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Called an attorney in Colorado this afternoon. He thinks we have a case against TransUnion and can possibly get it removed but I may need to find a lawyer in the state I live in. I sent him all the info. We shall see what he says by tomorrow. :) 

 

Here is the part where he is concerned:

1. TransUnion received my dispute by mail on November 4th 2014

2. TransUnion updated my CR the next day on November 5th 2014 as VERIFIED, NO CHANGE

 

How can do a proper verification in a day. He doesn't even think they did anything with my dispute.

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He said it might not be past the 7 years though. They supposedly sent the letter to me on June 4th 2008 and it states on my credit report that it was placed for collection on September 2008. It will be removed on August 2015. I paid what they told me to pay in May of 2008 then they audited the file or something and are back dating the amount starting from March 2007. So I guess technically the first date of delinquency would be June 2008 since that is when they are claiming they terminated me even though I reported that I was moving and no longer needed their services.

 

So TransUnion may be getting sued, but what can I do to get this removed by the OC now? 623 letter? It is past the SOL in Colorado which is 6 years so I do have some negotiating power, but I prefer to use that if absolutely necessary.

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@j_in_colorado

 

1681c©

 

The SOL for the FCRA does not begin when the account is placed for collection.

 

© Running of reporting period

(1) In general

The 7-year period referred to in paragraphs (4) and (6) of subsection (a) of this section shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.

 

The above says that the SOL for reporting begins 180 days after the delinquency.   They're claiming the delinquency began in 3/2007.   The SOL should have begun in 9/2007.  

 

If the SOL began on the date an account was placed for collection, that would allow creditors to wait as long as they please to place an account in collection.

 

From Transunion:

 

How long do accounts remain on my credit report?
 
The time limits listed below apply to federal law. State laws may vary.

Accounts:
In most cases, accounts that contain adverse information may remain on your credit report for up to seven years from the date of first delinquency on the account. If accounts do not contain adverse information, TransUnion normally reports the information for up to 10 years from the last activity on the account. Adverse information is defined as anything that a potential creditor may consider to be negative when making a credit-granting decision.
 
 
The housing authority is not reporting the date of first delinquency.
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That is not correct. 

 

It is what happens in practice, but CRAs may not simply rely on furnishers when you dispute.  That is called "parroting" and does not comport with the CRA's "reinvestigation" obligations under the FCRA.  See the Cushman case for an explanation.

 

 

This is "Cushman v. Transunion."  Decided in 1997, it has been cited 188 times.

 

http://scholar.google.com/scholar_case?case=10154525776981145013&q=cushman+fcra&hl=en&as_sdt=3,48

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This is how TransUnion responded to my complaint with the CFPB:

"We received your complaint about the item(s) in your credit report, and apologize for any difficulty you may have experienced. We are currently investigating the disputed information and will contact the source(s) to advise them of your dispute. They will verify the accuracy of the item(s) and inform TransUnion of their results. We will follow-up with you within sixty (60) days from the date you submitted your request."

Again, I submitted evidence that they are reporting this past the 7 years and they are not even acknowledging my evidence. This is ridiculous! They are still relying on the lying OC to "verify the accuracy of the item" and report it to them. Now I have to wait 60 days?!?! What is this?

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FWIW, I achieved success in my 18-month search for a mortgage by supplying signed letters from those in my past, e.g., director of food pantry where I volunteered for 10+ years prior to applying, the mayor I did weekend graffiti paint-outs with, and, the 108 households on behalf of who I won a federal fair housing action, all of it added up to me getting those keys and that hunk o' debt I so longed to be saddled with for decades. You, too, can submit letters, such as suggested above - on Housing Authority letterhead, vouching for your pristine standing when severing ties with them. Even scour old zip drives, etc, for a copy of that letter you prepared so many years ago. Maybe you still have that machine in the closet, or garage? It would be great to include a copy with your formal written request for a letter vouching for you...

It may even have an account number, or something helpful to them in their search through their old records!

Know this:

I often felt defeated, a single woman of modest means in a patriarchal -misogynistic even, society, with 1.5 years of daily devotion to The Great House Hunt, after logging 2+ years "playing house" as a mobilehome owner in a park setting, "to be sure I could handle the rigors of homeownership", as recommended on some talk radio show about finances.

BUT, I. NEVER. CONCEEDED.

Instead, I refocused, or manipulated my presentation to be more appealing to Seller's broker, or, whatever. it. took.

And, now I drive all over seeing homes that were "The One", but, hindsight being 20/20, I now know each of those homes led me to the French garden cottage beauty with super private large backyard and hardwood floors throughout, and all doublehung wonderful windows and on & on & on.... Home Sweet Home

I am fairly certain you are on a similar path.

BEST ADVICE:

Keep bolstering your application packet with the underwriters. Drop off a new letter to your mortgage broker daily, if possible. Nicely hound Housing Authority for a copy of your file, (likely to contain the letter from you, and the final, clear, accounting...)

WHILE, keeping your eyes & heart open to new possibilities. They are ALWAYS at the ready to please you, the instant your perspective turns their way "-)

Warmly,

And, above all else: Don't Panic!

This is how TransUnion responded to my complaint with the CFPB:

"We received your complaint about the item(s) in your credit report, and apologize for any difficulty you may have experienced. We are currently investigating the disputed information and will contact the source(s) to advise them of your dispute. They will verify the accuracy of the item(s) and inform TransUnion of their results. We will follow-up with you within sixty (60) days from the date you submitted your request."

Again, I submitted evidence that they are reporting this past the 7 years and they are not even acknowledging my evidence. This is ridiculous! They are still relying on the lying OC to "verify the accuracy of the item" and report it to them. Now I have to wait 60 days?!?! What is this?

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