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MadCow

Charge off Balance Question

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I had a charge off from a credit union that went into collections. After the transfer of the debt, the credit union still kept reporting the balance owed. They actually farmed it out to two CAs who where both reporting the balance on my credit at the same time. The CU didn't report the balance as zero. So I kind of had a "triple jeopardy" situation. After I called the credit union they said they had taken the account from the 1st CA back in 2013 and sent it to the 2nd CA.  They also took it from the 2nd CA in 2015 and brought it back in-house. But both CAs kept reporting I owed the same amount up until September 2016.

I know the CU should have started reporting on my account with a zero balance after they transferred the account for collections. The CAs should have also stopped reporting on  the account when they stopped collecting on it.

My questions are:

1) Can I sue the CU for FDCPA violations (inaccurate reporting)  for reporting a balance on my CR when they transferred my account to the CA? (My CR from 2014 and 2016 showed all three)

2) Can I sue the CAs for FDCPA violations for continuing to report on my CR for more than 1year after they let go of my account?

 

Thanks for the input.

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1 hour ago, MadCow said:

I had a charge off from a credit union that went into collections. After the transfer of the debt, the credit union still kept reporting the balance owed. They actually farmed it out to two CAs who where both reporting the balance on my credit at the same time. The CU didn't report the balance as zero. So I kind of had a "triple jeopardy" situation. After I called the credit union they said they had taken the account from the 1st CA back in 2013 and sent it to the 2nd CA.  They also took it from the 2nd CA in 2015 and brought it back in-house. But both CAs kept reporting I owed the same amount up until September 2016.

I know the CU should have started reporting on my account with a zero balance after they transferred the account for collections. The CAs should have also stopped reporting on  the account when they stopped collecting on it.

The only reason the CU would not be allowed to report a balance is if it sold the account.  Placing it for collection with a CA does not mean the account has been sold.

 

1 hour ago, MadCow said:

1) Can I sue the CU for FDCPA violations (inaccurate reporting)  for reporting a balance on my CR when they transferred my account to the CA? (My CR from 2014 and 2016 showed all three)

2) Can I sue the CAs for FDCPA violations for continuing to report on my CR for more than 1year after they let go of my account?

1.  No.   The FDCPA only applies to debt collectors.

2.  How are they continuing to report?   Did both CAs continue to update each month?   Look at the "date updated" on your CR.

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1 hour ago, MadCow said:

I know the CU should have started reporting on my account with a zero balance after they transferred the account for collections. The CAs should have also stopped reporting on  the account when they stopped collecting on it.

Unfortunately BOTH of these are wrong.  The CU was only required to show a zero balance if they sold the account to a debt buyer.  If they still own it they can report the balance regardless of it being in collections.

NOTHING in the FCRA requires the collection agencies to stop reporting if they are no longer actively collecting on the account.  What they cannot do is update the trade line.

1 hour ago, MadCow said:

So I kind of had a "triple jeopardy" situation.

Unfortunately it isn't triple jeopardy at all.  Sadly this is actually legal and a potential consequence of landing in collections: multiple trade lines for the same debt.

1 hour ago, MadCow said:

1) Can I sue the CU for FDCPA violations (inaccurate reporting)  for reporting a balance on my CR when they transferred my account to the CA? (My CR from 2014 and 2016 showed all three)

Nope.  As @BV80said, the FDCPA does not apply to original creditors.  Plus since they didn't sell the debt they are not in violation of the FCRA for continuing to report a balance either.

 

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@Clydesmom and @BV80 Thanks for the explanations. I thought I had a case but clearly I don't.  Its not a huge amount so I guess I will just settle and ask for delete as part of the deal. Thanks a bunch!

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