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brandie2881

Help with OC re-aging

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Hi guys I had a car loan with a credit union. The car was totaled in Dec 2010. The other parties insurance company paid out most of my remaining balance on the loan. I had GAP insurance but there was something called pre-existing damage that they would not cover leaving a balace of $2500. That I refused to pay.  So this negative has been sitting on my credit report since then. I have not had any contact with the OC since that time. I have not made any payments or promises to pay. Just let it sit there waiting for it to just fall off. 

I checked my credit reports recently to find that the OC changed my report to show a $5 payment was made in March of 2016 (this year).

My question is what to do now? Do I dispute with the CRA's or the OC or both? Or do I just send a letter to the OC asking for removal with my intent to sue? And follow through if my request is not met.

TIA for your help!

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I would talk to a consumer attorney first if I were you.

You can't sue unless you have first disputed the TL with the CRAs and they verified any incorrect information.  The FCRA is a little more complicated consumer law than others, so I would not send off any intent to sue letters without understanding the law and what you can and can't do first.  Not to mention that it appears that LA has a draconian 10 year SOL on this kind of debt, so they may just sue you first if you start threatening them in letters.

An attorney would know any possible state laws better and could potentially sue them for not only an incorrect TL, but for the fraudulent $5 payment to resent both the SOL for reporting and the SOL for collections.  It's always a good idea to talk with a handful of attorneys to see what your options are.

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I could be wrong on this, but I'm pretty sure that down here in LA a $5 payment would not restart the SOL for anything.  SOL clock starts running at the delinquency, and unless the payment fully cures the delinquency, the DOFD will not change. 

 

The SOL for many debts here is 10 years, but that's not the whole story.  If this was a written contract, then the SOL is 10 years....it's called a "prescriptive period" in our laws, but it means the same thing.  But, a promissory note has an SOL of 5 years in Louisiana.  Car loans are typically secured by the collateral, which is the car you're buying, and you generally do have to sign a promissory note.  If this loan has a promissory note in it, then your SOL is 5 years.  LA law states that the 10 year rule applies to all contracts, UNLESS there is a more specific rule available for the type of written contract you are dealing with.  For example, a credit card account can be considered a written contract, but because there's a more specific rule for open accounts--3 year SOL---the 10 year rule does not apply to those.  It's the same with promissory notes.  The answer could depend on the specific paperwork your loan had with it. 

Would you mind letting us know the credit union?  I've dealt with a couple down here that deal in funny business.  American First Finance tried to file a MSJ in court for a vehicle loan that they had already been paid in full on, a few years ago.  Did not take much to put a stop to that, but the fact that they still tried is something.  My vehicle was totaled in that one too, and insurance paid it off in full.  Well, they took the insurance money, tried to claim that some of it went to attorney's fees, and claimed there was still a balance due of over $2000.  I practically dared them to send me a 1099 for the "outstanding balance due" when they said they were waiving it.  They never did.  Often, though, if we know the creditor you are dealing with, we can help you find more info on them, such as other complaints. 

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18 hours ago, kraftykrab said:

I could be wrong on this, but I'm pretty sure that down here in LA a $5 payment would not restart the SOL for anything.  SOL clock starts running at the delinquency, and unless the payment fully cures the delinquency, the DOFD will not change. 

You are right.  I don't know what I was thinking, but this does not change the reporting SOL as the date of default remains the same.   But showing the small payment not actually made is an incorrect TL and can be disputed.

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22 minutes ago, NewBeginning16 said:

Isn't showing  a payment of any size that wasn't actually made FRAUD?

Not necessarily.   Also, to prove it, you have to show an intent to defraud in some way.

 

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The bank is Jefferson Financial Credit Union. The school board used to use this bank not sure if they still do or not. 

Thanks everyone for all your help :)

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1 minute ago, NewBeginning16 said:

So the fake payment along with the reaging wouldn't do that?

We don't know that it's a "fake payment".  It could simply be a mistake. 

Also, the entry on the credit report was not reaged.   The  7-year reporting period is based upon the date of delinquency after which the account is never brought back to a current status.  

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21 minutes ago, BV80 said:

We don't know that it's a "fake payment".  It could simply be a mistake. 

Also, the entry on the credit report was not reaged.   The  7-year reporting period is based upon the date of delinquency after which the account is never brought back to a current status.  

What would their bonafied error defense be? How would that happen suddenly after all of this time?

 

Sorry about the reaging thing. I'm reading too much at once. lol

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2 minutes ago, NewBeginning16 said:

What would their bonafied error defense be? How would that happen suddenly after all of this time?

 

There's really no way of knowing right now.   It could even be a mistake on the part of the CRA. 

The OP still has to dispute with the CRAs.   If the payment is verified, he can take further action.   However, in order for him to receive statutory damages under the FCRA, he must prove that the bank willingly violated the Act.  Otherwise, he has to prove actual damages.

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Just now, BV80 said:

There's really no way of knowing right now.   It could even be a mistake on the part of the CRA. 

The OP still has to dispute with the CRAs.   If the payment is verified, he can take further action.   However, in order for him to receive statutory damages under the FCRA, he must prove that the bank willingly violated the Act.  Otherwise, he has to prove actual damages.

Oh, I know. I just kind of assumed all of that was going to happen. 

I was always that annoying kid in class raising my hand and asking questions. I also did debate, so I like to see things from the view of other people.  Keeps me sharp. lol

 

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On 6/2/2016 at 2:41 AM, NewBeginning16 said:

What would their bonafied error defense be? How would that happen suddenly after all of this time?

 

Sorry about the reaging thing. I'm reading too much at once. lol

@NewBeginning16 @BV80

If I had to guess (and, clearly this is just a guess until OP finds out for sure), I would base my guess on the many times I have seen here and the other board where someone finds a "phantom" payment was made to their account right before a JDB bought it.  Usually it seems that a JDB makes the payment to the OC on the account making it appear as if the consumer made a small payment.  This allows the SOL to be reset just as the JDB is taking ownership of the account.  So, if I were OP, I would check my reports again in a few weeks and watch my mail and phone closely for new debt collection calls to suddenly come up for this account.  That could be a key in determining what is up with the extra payment.

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Just now, fisthardcheese said:

@NewBeginning16 @BV80

<snip> Usually it seems that a JDB makes the payment to the OC on the account making it appear as if the consumer made a small payment.  This allows the SOL to be reset just as the JDB is taking ownership of the account.  <snip>

This is what I thought. There had to be a reason for it. And there it is. 

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19 minutes ago, fisthardcheese said:

@NewBeginning16 @BV80

If I had to guess (and, clearly this is just a guess until OP finds out for sure), I would base my guess on the many times I have seen here and the other board where someone finds a "phantom" payment was made to their account right before a JDB bought it.  Usually it seems that a JDB makes the payment to the OC on the account making it appear as if the consumer made a small payment.  This allows the SOL to be reset just as the JDB is taking ownership of the account.  So, if I were OP, I would check my reports again in a few weeks and watch my mail and phone closely for new debt collection calls to suddenly come up for this account.  That could be a key in determining what is up with the extra payment.

I see your point, and I have no doubt that some JDBs would be that sneaky.  But I'm thinking if they're trying to reset the SOL, they'd show more than a $5 payment on a $2500 debt especially when no payments have been made for 5 or 6 years. 

But, as you've noted before, even if the JDB did make such a payment, it would have no effect on the 7-year reporting period.   And if the JDB were stupid enough to sue, they'd have to prove that $5 payment.

 

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Just now, BV80 said:

But, as you've noted before, even if the JDB did make such a payment, it would have no effect on the 7-year reporting period.   And if the JDB were stupid enough to sue, they'd have to prove that $5 payment.

I recall at least 2 recent threads here where the OP knew for a fact they never made a small $5 or $10 payment about 2 years prior to being sued.  In both cases, it appeared as if the payment was made around the time a JDB bought the debt from the OC.  While I agree that the JDB would need to prove the consumer made that payment, I would venture to guess that 99% of people this happens to don't show up and get a default judgement.  I think there are 1 or 2 JDBs out there who have added making a small payment part of their business model in order to extend the SOL to file suit knowing that almost always they will be getting a default judgement anyway and even if the consumer does show up to argue they never made that payment, the JDB will either strong-arm them in the hallway and get a consent judgement or their good buddy the judge will do the old "did you have this credit card?  Yes?  Judgement for Plaintiff".

It's just something to look out for if someone like OP here notices a small payment they don't ever recall making themselves.

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22 minutes ago, fisthardcheese said:

I recall at least 2 recent threads here where the OP knew for a fact they never made a small $5 or $10 payment about 2 years prior to being sued.  In both cases, it appeared as if the payment was made around the time a JDB bought the debt from the OC.  While I agree that the JDB would need to prove the consumer made that payment, I would venture to guess that 99% of people this happens to don't show up and get a default judgement.  I think there are 1 or 2 JDBs out there who have added making a small payment part of their business model in order to extend the SOL to file suit knowing that almost always they will be getting a default judgement anyway and even if the consumer does show up to argue they never made that payment, the JDB will either strong-arm them in the hallway and get a consent judgement or their good buddy the judge will do the old "did you have this credit card?  Yes?  Judgement for Plaintiff".

It's just something to look out for if someone like OP here notices a small payment they don't ever recall making themselves.

I remember that there have some posters who were sued and don't remember making payments .  We told them to check their bank records and use them as evidence, if necessary.

I just don't understand a JDB's purpose in putting a payment like that on a CR because they never use CRs as evidence.  They only make such claims in the allegations in complaints.  It would serve no purpose to put in on a CR.  (Of course, we are talking about JDBs, not rocket scientists).

 

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There may be one other possibility to consider since this is a credit union.  @brandie2881 did you have a savings or checking account with this credit union?  Most credit unions require a $5 deposit to open an account. Is it a possibility that you left a dormant account behind?  The credit union could have closed the account and applied such a deposit to the account balance, using an account provision called "right of offset."

I'm not saying this is what occurred, but the $5 amount is what most credit unions ask for when opening an account.

 

P.S. If this is what occurred, I don't believe the application in 2016 of any deposit to an alleged debt from 2010 is legit in terms of re-aging.  I'd still fight it.

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Been a couple months, I know, but something I just saw prompted me to think about this....

 

On 6/5/2016 at 1:28 PM, Determined1 said:

There may be one other possibility to consider since this is a credit union.  @brandie2881 did you have a savings or checking account with this credit union?  Most credit unions require a $5 deposit to open an account. Is it a possibility that you left a dormant account behind?  The credit union could have closed the account and applied such a deposit to the account balance, using an account provision called "right of offset."

This...

 

I have a current auto loan through this same credit union.  In the process of getting an auto loan, you also open a basic bank account with them.  I went to a Chevy dealer and we bought our car, and they stuck $5 in a separate savings account with Jefferson.  It could have something to do with that.  Because it's a credit union, you have to either live or work in a particular area, or already have an account there, in order to get a loan there.  So, they opened up a $5 savings account at the same time that we got our loan. 

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