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They're not allowed to do this, are they? Multiple ghost payments and returned payments, and chargeoffs/returned chargeoffs in the middle


Varpu_ai
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I was sent this page when I asked for validation of debt from a collector. According to their papers, they supposedly bought this debt in August 2016; the paperwork they sent me shows that the account/debt belonged to the OC up until then. Which means all of this is from the OC (Rise, if that matters). 
It looks sort of normal in terms of charges for that type of company, except I don't understand the multiple "chargeoffs/chargeoff returns" that are shown.  Can anyone make sense of what that is? It seems to happen pretty much all on one day too, which is weird, and then they continue to charge fees and it looks as though payments were being posted but then "returned" (the last actual activity from me on that account was in May 2016).


I know it's somewhat old but the JDB and OC have been aggressively reporting this on my reports for years, and the amount listed is the $3822 number at the bottom, and they're listing my last payment activity being in Late July 2016, and that's wrong. That's just apparently when the OC decided to sell the debt and stopped posting false activities to it.

I'm generally familiar with the basic protocols for disputing etc., but I haven't seen that weird chargeoff stuff in the middle, and ghost ACH payments that I know I did not make. 

Thoughts? 
 

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6 hours ago, sparrowsav said:

The last time I made a payment on this account was in May of 2016; shortly afterwards is when those "chargeoffs" etc posted repeatedly. 
 

I was living in California in 2016; I am in New Mexico now. 

Look at the dates and descriptions for each of the listed activities.

The charge off was reported twice, but the dates listed for it are the same.  It’s probably just a duplicate.

The activity dates have no effect at all on the date the account will fall off your credit report.  Some sites state that the 7-year reporting period is based on the date of last activity (payment).  That is incorrect.

The 7-year credit reporting period for derogatory accounts is based upon the date of first delinquency with the OC.  See 15 U.S. Code 1681c(c) of the Fair Credit Reporting Act (FCRA). That is the date you went into default and never again brought the account back to a current status.  Regulations require that creditors charge off a defaulted account within 6 months after default occurs.

The FCRA specifically states that the 7-year reporting period begins 180 days after the delinquency that leads to collection or charge-off.  That aligns with the 6 month charge off regulation.  Some creditors wait the full 6 month period before charging off an account while others will do it sooner.  Considering the dates listed are the same, the creditor did nothing wrong.  No matter which charge off you go by, both show the same date.

 In regard to the extra payments, again look at the dates and descriptions.  For each of the ACH payments made after May, it shows the payments were “returned”.  In other words, those payments were no longer reported.

It looks like a billing glitch.  If you’re worried about credit reporting, it’s not affecting you.  

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You may have a case against THEM.  

If I am not mistaken, the SOL for credit card debts in both New Mexico and California is 4 years.  

Which means they can't sue you for the debt. 

In 48 states (all except MS and WI), they can still attempt to collect on the debt as long as they make it clear in the information they give that they won't sue.  

If they gave the proper information, they are within their rights.  All you have to do is ignore them.  You can send a Cease and Desist letter if you want, which prevents them from ever contacting you again.  

If they did NOT give the proper information, you have an FDCPA case against them, and they probably violated California laws as well.  

If you kept all the correspondence from them, see if they violated the FDCPA.  If so, take the stuff to a good consumer lawyer.  He can probably get you a small amount of money, plus a larger amount for himself.  If not, either ignore them or send a C&D letter.  

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Thank you for the comments; I'm not worried about being sued. My ultimate problem with this is it being on my credit reports. 
To clarify, the major issue I am questioning is the additional "fees" that took place AFTER the supposed "chargeoff". When I stopped paying I owed around $2600. After their supposed "chargeoff", they tacked on another $1000 to the total amount due. That amount, the $3822, is the amount being reported on my credit reports as past due etc, by a junk debt collector (NCB). The paperwork supplied to me by NCM shows that up until the end of July, 2016, my account still belonged to the OC.

 

So in other words what I'm saying is, if they legitimately did do a chargeoff 2 weeks into my not paying my bill (unlikely but possible), then they should NOT have tacked on another $1000 after that chargeoff. 
 

if they're didn't charge it off, then why does it say they did? Etc 

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17 minutes ago, sparrowsav said:

Thank you for the comments; I'm not worried about being sued. My ultimate problem with this is it being on my credit reports. 
To clarify, the major issue I am questioning is the additional "fees" that took place AFTER the supposed "chargeoff". When I stopped paying I owed around $2600. After their supposed "chargeoff", they tacked on another $1000 to the total amount due. That amount, the $3822, is the amount being reported on my credit reports as past due etc, by a junk debt collector (NCB). The paperwork supplied to me by NCM shows that up until the end of July, 2016, my account still belonged to the OC.

 

So in other words what I'm saying is, if they legitimately did do a chargeoff 2 weeks into my not paying my bill (unlikely but possible), then they should NOT have tacked on another $1000 after that chargeoff. 
 

if they're didn't charge it off, then why does it say they did? Etc 

If the last time you paid was 2016, I guarantee you that it’s charged off.  Interest is allowed to accrue after a charge off.  It would be best to get a copy of the applicable credit agreement to see what it says about default, interest, and fees.

What kind of debt is this?

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4 hours ago, sparrowsav said:

When I stopped paying I owed around $2600.

After their supposed "chargeoff", they tacked on another $1000 to the total amount due. That amount, the $3822,

Yes, but for the next 6 months they added late fees, interest, and any other fee the terms and conditions of the "loan" allowed for.  That adds up fast and can quickly balloon a balance if not double it.  Especially considering their average interest rate is usually over 20%.  

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