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Credit One sold debt that has been paid already to LVNV/Resurgent !


magali
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I have received a call saying LVNV owns some debt BUT Resurgent seems to be some sort of middleman for them.

I explained it was paid. The person on the phone put me on hold forever and I hung up. I received two letters from Resurgent claiming I owe about $700.

I called Credit One and the customer service agent with a very thick accent said I would receive a letter within 10 days. The letter simply says "notice of sale of your credit card account".

 

I have the email from Credit One offering me a balance reduction. If I paid 50% of the balance, they would waive the remainder of the balance. I paid online and received a confirmation email.

 

I live in Los Angeles, CA. I figured it is better to send a letter to both LVNV and Resurgent.

I don't think debt validation is necessary because the debt does not exist. I want to dispute the debt by sending the screenshots of the balance reduction offer and proof of payment.

Can I report Credit One for selling a debt that doesn't exist? Or this kind of mistake happens often?

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Well, I am searching this forum and found an article about this situation:

 

Quote

If you do have a written settlement deal and your debt was resold after the fact, I’m sure your state attorney general would love to know about it.

 

https://www.creditinfocenter.com/wordpress/2013/02/12/after-settling-a-debt-for-less-than-owed-can-the-balance-be-sold/

 

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The crappy letter I received from Credit One states at the bottom that "credit one will request that the major credit reporting agencies change credit one's tradeline with respect to this account to reflect the status of this account as charged-off and sold. This status may take up to 60 days to be reflected in your credit report".

 

Is there any way to stop this? I read about 623 dispute letter, but I checked all 3 credit bureaus and it doesn't show anything about CO or LVNV, so I cannot use this letter yet.

I even found on my cellphone bill statement the day/time I made a call to credit one confirming that now that I paid off the balance, the account would be closed. The person on the phone said it would. I am sure that call was being recorded.

But looking through my email, I found that credit karma sent me an email 2 months later saying that I had a new card with credit one. I don't remember if I received a card, but if I did, I would have put it in my paper shredder. LVNV says the account number ends with the same number as the card I used to have.

 

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I thought in sending a letter to Credit One disputing this debt and inaccurate information they are sending or have sent to all CRA but I read on a website that "notice of a dispute to a furnisher by a consumer directly does not trigger a furnisher’s duty to reinvestigate under § 1681s-2(b)". 

 

The only option left for now is to send DV to LVNV but from the threads I have seen about this JDB, they usually ignore it or send a basic letter saying they bought it the debt and own it now.

 

When I was researching, I found another forum and someone said they emailed the higher ups at Credit One. Has anyone done such thing? It worked for most of them.😣

https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/CreditOne-Late-Payment-Removal-Success/td-p/5124576

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10 hours ago, magali said:

I thought in sending a letter to Credit One disputing this debt and inaccurate information they are sending or have sent to all CRA but I read on a website that "notice of a dispute to a furnisher by a consumer directly does not trigger a furnisher’s duty to reinvestigate under § 1681s-2(b)". 

 

The only option left for now is to send DV to LVNV but from the threads I have seen about this JDB, they usually ignore it or send a basic letter saying they bought it the debt and own it now.

 

When I was researching, I found another forum and someone said they emailed the higher ups at Credit One. Has anyone done such thing? It worked for most of them.😣

https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/CreditOne-Late-Payment-Removal-Success/td-p/5124576

Yes, it does trigger an investigation.   Here are a few of the differences between 1681s-2(a) and 1681s-2(b).  Both subsections trigger an investigation.  It’s what happens after the investigation that differs between the 2 subsections. 

A direct dispute sent to a furnisher falls under 1681s-2(a)(8).  If you read that subsection, it states that the furnisher shall conduct a reasonable investigation and report the results to the consumer.  If the disputed information is incorrect, it must the. notify the CRAs and correct the information.  However, there is no private right of action under subsection a  for consumers if a furnisher fails to investigate and correct inaccurate information.

Under subsection b, the consumer must dispute the inaccurate information with the CRAs.  The CRAs then notify the furnisher.  The furnisher must then investigate and report the results to the CRAs.  Remember that under subsection a, the results are reported to the consumer.  If the disputed information is inaccurate, the furnisher must then correct or delete it.

 It’s disputing with the CRAs that requires the CRAs to notify the the furnisher of the dispute.  That then requires the furnisher to notify the CRAs, rather than the consumer, of the results and gives the consumer a private right of action against a furnisher who fails to correct or delete inaccurate information.  For a consumer to have a private right of action, the notice of a dispute of inaccurate information must be received by the furnisher from the CRAs.

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This is an interesting situation, in that it may also involve FDCPA and/or state law violations.  

If you could arrange a free consultation with a good consumer attorney, he could advise you.  In many of these cases, the attorney takes the case, gets a few thousand in legal fees from the malefactor, and you get a few hundred to a few thousand.  Also, the problem disappears.  

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6 minutes ago, BackFromTheDebt said:

This is an interesting situation, in that it may also involve FDCPA and/or state law violations.  

If you could arrange a free consultation with a good consumer attorney, he could advise you.  In many of these cases, the attorney takes the case, gets a few thousand in legal fees from the malefactor, and you get a few hundred to a few thousand.  Also, the problem disappears.  

Yes, I do think this is a serious violation that needs to be reported, but I want to give Credit One the benefit of a doubt and think that they shoved my account in a pile of unpaid debt to be sold when I still owed them money. I will send them cmrrr dispute today so they can't pretend that they never received it. At the same time, I have to sent a DV letter to LVNV and Resurgent because they allegedly sent me on 10/19 a letter claiming I owe them money. I will also send it certified mail rrr so they can't claim it arrived past the 30 days.

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4 hours ago, BV80 said:

Yes, it does trigger an investigation.   Here are a few of the differences between 1681s-2(a) and 1681s-2(b).  Both subsections trigger an investigation.  It’s what happens after the investigation that differs between the 2 subsections. 

A direct dispute sent to a furnisher falls under 1681s-2(a)(8).  If you read that subsection, it states that the furnisher shall conduct a reasonable investigation and report the results to the consumer.  If the disputed information is incorrect, it must the. notify the CRAs and correct the information.  However, there is no private right of action under subsection a  for consumers if a furnisher fails to investigate and correct inaccurate information.

Under subsection b, the consumer must dispute the inaccurate information with the CRAs.  The CRAs then notify the furnisher.  The furnisher must then investigate and report the results to the CRAs.  Remember that under subsection a, the results are reported to the consumer.  If the disputed information is inaccurate, the furnisher must then correct or delete it.

 It’s disputing with the CRAs that requires the CRAs to notify the the furnisher of the dispute.  That then requires the furnisher to notify the CRAs, rather than the consumer, of the results and gives the consumer a private right of action against a furnisher who fails to correct or delete inaccurate information.  For a consumer to have a private right of action, the notice of a dispute of inaccurate information must be received by the furnisher from the CRAs.

 

 

Thank you, I will send them the dispute today, and make sure it is certified mail with return receipt. This is what I wrote so far

 

 

Subject: DIRECT DISPUTE NOTICE OF ACCOUNT ENDING IN XXXX

 

I am writing to you to dispute the information you have sent to credit agencies detailed on “Notice of Sale of Credit Card Account” letter. Credit One Bank is required to report accurate information, regardless if the debt has been sold (Fair Credit Reporting Act Section 623 (a) (2)). Per FCRA (12 CFR 222.43) “A furnisher must conduct a reasonable investigation of a direct dispute”.

 

The balance of U$7xx on Credit One Bank credit card account ending in xxxx is inaccurate. Credit One offered a balance reduction and claimed the remainder balance would be waived. I agreed to the offer and made the payment on xxxxx.

On February xx, I called the customer service number (1-877-825-3242) at xxhour to confirm the account was closed. The agent guaranteed that it would be closed. Per Credit One Bank’s card agreement, a customer “may close the account at any time”.

On xxdate Credit One stated in a letter sent to me the account ending in xxxx had been charged off, sold to a debt collection agency and that would report this information to credit agencies.

 

Enclosed are copies of the e-mails from Credit One Bank offering a balance reduction, proof of payment and also my cellphone bill statement confirming I made the call to customer service supporting my dispute.

Please reinvestigate this matter and contact the major credit bureaus to delete or correct this information as soon as possible. Also contact LVNV Funding, LLC to close the account with collections.

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2 minutes ago, magali said:

 

 

Thank you, I will send them the dispute today, and make sure it is certified mail with return receipt. This is what I wrote so far

 

 

Subject: DIRECT DISPUTE NOTICE OF ACCOUNT ENDING IN XXXX

 

I am writing to you to dispute the information you have sent to credit agencies detailed on “Notice of Sale of Credit Card Account” letter. Credit One Bank is required to report accurate information, regardless if the debt has been sold (Fair Credit Reporting Act Section 623 (a) (2)). Per FCRA (12 CFR 222.43) “A furnisher must conduct a reasonable investigation of a direct dispute”.

 

The balance of U$7xx on Credit One Bank credit card account ending in xxxx is inaccurate. Credit One offered a balance reduction and claimed the remainder balance would be waived. I agreed to the offer and made the payment on xxxxx.

On February xx, I called the customer service number (1-877-825-3242) at xxhour to confirm the account was closed. The agent guaranteed that it would be closed. Per Credit One Bank’s card agreement, a customer “may close the account at any time”.

On xxdate Credit One stated in a letter sent to me the account ending in xxxx had been charged off, sold to a debt collection agency and that would report this information to credit agencies.

 

Enclosed are copies of the e-mails from Credit One Bank offering a balance reduction, proof of payment and also my cellphone bill statement confirming I made the call to customer service supporting my dispute.

Please reinvestigate this matter and contact the major credit bureaus to delete or correct this information as soon as possible. Also contact LVNV Funding, LLC to close the account with collections.

Are you sending it to the CRAs or Credit One?

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2 hours ago, BV80 said:

Are you sending it to the CRAs or Credit One?

I checked all three CRA and it doesn't show up yet. Credit One said it will take up to 60 days for the change to appear in my credit report.

So I thought in sending that to Credit One  and then send a DV to LVNV and Resurgent.

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26 minutes ago, magali said:

I checked all three CRA and it doesn't show up yet. Credit One said it will take up to 60 days for the change to appear in my credit report.

So I thought in sending that to Credit One  and then send a DV to LVNV and Resurgent.

Okey dokey.  Be sure to include in the DV that you dispute the debt, and it has already been paid.

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  • 2 weeks later...

My letters to LVNV and resurgent already arrived there and the letter to Credit One arrives tomorrow. Experian sent me a message today about updated credit file. I see that credit one reported my payment and kept the balance that they promised would be waived.

 

as soon as the letter arrives at credit one, I will file a dispute with experian.

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7 hours ago, magali said:

My letters to LVNV and resurgent already arrived there and the letter to Credit One arrives tomorrow. Experian sent me a message today about updated credit file. I see that credit one reported my payment and kept the balance that they promised would be waived.

 

as soon as the letter arrives at credit one, I will file a dispute with experian.

When did you pay Credit One?

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10 hours ago, BV80 said:

When did you pay Credit One?

I paid them in February. It shows my payment but they continued to charge me. I gave them the benefit of a doubt but now I see they just kept me charging late fees for months! I still have their emails showing that they offered me a balance reduction. I paid on time.

They used to call me 20x a day, 7 days a week for months. At the time I didn’t know it was a violation. I wish I had found this forum sooner. 

Attached are screenshots of experian showing the charges from credit one and a screenshot from my inbox showing that credit one sent me an offer. 
I called them about closing the account after my payment went through and not only they didn’t close it but they kept the balance.

 

7DA9549C-B09E-4BB2-BD85-9146EC8BE5F5.jpeg

D552420E-B1BF-4E95-A20E-E03D9AB3DF8F.jpeg

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8 hours ago, BackFromTheDebt said:

The possible violations you are referring to appear to be within the past year, therefore you could still sue them. 

The problem is, you may not have any proof.  You may need to use discovery to get their call records to you.  

no proof? their calls are recorded and i know exactly which day and time i called them because i found it on my cellphone billing statement for that month

i also have the emails that confirm that i made the payment and the email offering me the balance reduction. they gave me until mid february to pay and i paid in early february

 

they sold the nonexistent debt to LVNV. how would i use discovery when credit one doesn't own the "debt" anymore? 

they haven't picked up their mail yet at the PO Box, so i did not dispute with experian yet. 

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4 hours ago, magali said:

no proof? their calls are recorded and i know exactly which day and time i called them because i found it on my cellphone billing statement for that month

i also have the emails that confirm that i made the payment and the email offering me the balance reduction. they gave me until mid february to pay and i paid in early february

 

they sold the nonexistent debt to LVNV. how would i use discovery when credit one doesn't own the "debt" anymore? 

they haven't picked up their mail yet at the PO Box, so i did not dispute with experian yet. 

You need to contact a consumer attorney.  Credit One is the OC, so you have no claims under the FDCPA.   However, you have the FCRA and possible state laws.  The problem with the FCRA is that it’s more difficult to show an injury.  You would have to show not only how the reporting is incorrect but also that it has harmed you.  See the following U.S. Supreme Court ruling.

“[D]eprivation of a procedural right without some concrete interest that is affected by the deprivation . . . is insufficient to create Article III standing." Spokeo, Inc. v. Robins, 136 S. Ct. 1540, 1549 (2016).

For proof, do you still have their letter that offered the settlement, waiver of the remainder of the balance, and proof that you paid?   If so, that is proof the account is being inaccurately reported, but you also must show that you disputed the inaccuracy with the CRAs and that Credit One did not correct or delete it after receiving notice.  There’s no FCRA claim until Credit One does not correct or delete.

Do you have the notice of the sale of the account from LVNV and subsequent collection letters?  That’s enough to allege that Credit One sold an account it should not have sold, but I’m not sure what law it violates.  That’s where a consumer attorney comes in.  Once you sufficiently allege the sale of the account in a properly written complaint and offer your proof, it would be up to Credit One to offer evidence that it did not sell the account, that a sale was not inappropriate, or that this is all a big mistake.  

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Wise advice from @BV80

Especially his emphasis on state laws.  For example, in my state, Wisconsin, the Wisconsin Consumer Act applies to the OC, and this sort of behavior is covered.

 

There are other reasons to talk to a consumer attorney.  

My job is related to my bank fixing its mistakes, which gets into regulatory matters.  Banking is a very tightly regulated business.  Quite seriously, I have dealt with situations in which banks spent more millions than you can imagine either in fines, or trying to fix the situation so they DON'T get fined.  The culprit is usually some error in programming code or database design.  

Consider, two years ago Chase (for whom I have never worked) forgave every cent of debt for every Chase credit card in Canada, and left the market entirely.  They didn't say why, but that was probably to avoid regulatory issues which could have been even more expensive.  

To make matters simple -- Credit One selling your debt AFTER you settled the debt almost certainly runs afoul of federal banking laws.  Possibly some of your state's laws as well.  It may even be seen as fraud.  

This is why you should speak to a good consumer attorney.  I don't know which laws and regulations they have broken.  That's not my job.  it is a consumer attorney's job to either know or find out.  

 

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12 hours ago, BV80 said:

You need to contact a consumer attorney.  Credit One is the OC, so you have no claims under the FDCPA.   However, you have the FCRA and possible state laws.  The problem with the FCRA is that it’s more difficult to show an injury.  You would have to show not only how the reporting is incorrect but also that it has harmed you.  See the following U.S. Supreme Court ruling.

“[D]eprivation of a procedural right without some concrete interest that is affected by the deprivation . . . is insufficient to create Article III standing." Spokeo, Inc. v. Robins, 136 S. Ct. 1540, 1549 (2016).

For proof, do you still have their letter that offered the settlement, waiver of the remainder of the balance, and proof that you paid?   If so, that is proof the account is being inaccurately reported, but you also must show that you disputed the inaccuracy with the CRAs and that Credit One did not correct or delete it after receiving notice.  There’s no FCRA claim until Credit One does not correct or delete.

Do you have the notice of the sale of the account from LVNV and subsequent collection letters?  That’s enough to allege that Credit One sold an account it should not have sold, but I’m not sure what law it violates.  That’s where a consumer attorney comes in.  Once you sufficiently allege the sale of the account in a properly written complaint and offer your proof, it would be up to Credit One to offer evidence that it did not sell the account, that a sale was not inappropriate, or that this is all a big mistake.  

Yes, I have their email offering a settlement and stating that they would waive the remainder of balance. I have proof that I paid. They record their calls, so they should have the recording of when I asked about closing my account. I have the letter from LVNV/Resurgent and the letter from Credit One stating they sold the account.

And on my credit report it shows that Credit One reported this month the sale to a debt collector.

 

It is strange that Credit One harassed me for months about my debt before that payment but did not harass me after I paid even though they kept charging me fees every month. Once they reached the amount I originally owed before the payment, they sent it to collections. It makes me feel like they purposely didn't contact me because they wanted to send to collections and eventually I would have to pay everything.

 

On an old thread about LVNV, it says this company is owned by ShermanCompanies, which also owns Credit One. In the end, the money goes to them anyways.

 

I disputed it on Experian today. It doesn't show upon Transunion, just that I was in debt last year. On Equifax it shows the wrong info for this year but it wasn't accepting my documents so I will try again later.

I sent to Experian proof of settlement offer, proof of payment, letter from credit one saying they sold the debt, letter from debt collector, proof that i sent a direct dispute to Credit One and even usps confirmation that they received it today. A total of 8 docs.

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Just because they record their calls does not mean they will still have the recording available. Creditor recordings have a habit of disappearing when requested in court, usually in the course of ordinary business, of course. You cannot depend on any evidence in the hands of the creditor.

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UPDATE: experian already reported the dispute is complete. Credit one bank was removed  from my credit report.

 

edit: credit one is not showing up on equifax either. I signed in today (Saturday) to file a dispute there and it is gone too. It still shows up on credit karma under transunion, but on transunion website it is gone too. 

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Hello! Has anyone had this issue before?

\Although Credit One removed everything from my credit record on 11/18, I received a really crappy debt validation from LVNV dated 11/16. 

Should I send a letter to Credit One again telling them LVNV is still charging me? or mail lvnv? Or will credit one update lvnv on their own and I don't need to do anything?

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