How to fix wrong information on credit report?

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s.jessica
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How to fix wrong information on credit report?

Postby s.jessica » Sat Mar 02, 2013 4:27 pm

How bad is it to have a collection account on a credit report and have the status "reported as uncollectable by creditor"?

The morons at the bank made a stupid screw up. I was going to buy something with a friend so I filled out a credit application at this bank - as far as I know it was just a credit application and that's all I have a copy of, no other agreement. They said I was approved, but we left it at that. Later he shows up with this really expensive truck and I was wondering how on earth he could afford something like that and I just kind of figured he decided to go his own way so I didn't say anything. About 5 months later his brand new truck he drove off the showroom floor was repossessed. Maybe 2 months after that he called me and told me the truck was repossessed, sold at auction and the balance due after the repo sale was $23,875, he then said they were calling him every day trying to collect, he didn't have the money and I needed to pay them because I was his cosigner. What? I filled out a credit application, I never agreed he could buy a $40,000 truck!

During this time, the bank he used was bough out by another bank and then it was at least six months after that, I get a letter from the collections department with a bill for $23,875 with a letter informing me that I must send payment in certified funds within 10 days by Priority Mail to avoid legal action being taken. This was the first contact I had with anyone concerning this. I called him up to ask him what was going on and he said, "finally! I've been telling them every time they called to get the money from my cosigner and they said I didn't have a cosigner." He finally got someone who took down my name and address, then looked it up manually and then said he was correct, I was his cosigner.

I checked my credit reports and the open collection popped up right after I received the letter which was maybe 6 months after it went to collections. I sent them a letter stating that I didn't believe this was correct and they should remove the collections from my credit report. They responded with they checked their records and the bill was correct. I then asked a lawyer for help and he helped me write them a letter to which they responded, my credit report would be updated to "credit charge off, reported as uncollectable."

Do I now need to do something to get this removed from my credit reports? Apparently what happened is the bank got careless, put my application with his, approved them both then gave him whatever he wanted, made me the cosigner then lost the paperwork and sold out to another bank. Somebody else signed the paperwork for the actual transfer of sale and the bank never checked to see if it was the same person who filled out the application.

I really wanted to apply for a couple better cards then this suddenly popped up now I don't know if I should. My credit was looking up but today when I checked CK which is the only way I know how to get a score other than apply for credit is 618. It was showing me at 665 before these bozos popped up.

I suppose now I should just be glad I can have a couple of crap cards?


MemberSince99
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Postby MemberSince99 » Sat Mar 02, 2013 4:40 pm

So, you went to the bank with a "friend" (and with friends like him you don't need any enemies) and filled out a "credit" application, but the bank made a "mistake"?

If that really happened, you are kind of SOL now, you can try to argue that, but what matters now is what anyone can prove in court, cause it sounds like that's where this is going.

First of all, lose this "friend" of yours, for your own sake. He sounds like a slimy leech, sicc'ing the bank on you to try to get himself out of his debt. Anyone who would do that is a scumbag, no better than the people who are probably going to be taking legal action against you soon.

Secondly, you need to take the copy of the agreement you signed to an attorney and get a legal opinion as to what you are liable for, preferably before they sue you which sounds like it will be any time now.

As far as disputing this with the CRAs, you can try, but I'd bet you money that the creditor is simply going to respond that the debt is valid and thus the collection will stay. They don't have to "prove" anything, simply state it is valid, and they surely will. So good luck with that.

I hope it turns out better than this, but it sounds very very ugly. You really need a lawyer for this. Please get yourself one.

MOC
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Postby MOC » Sat Mar 02, 2013 4:44 pm

If you tell them you are disputing something, they are legally required to investigate it. It sounds like they did that and changed it to a chargeoff which is different, but still hurts your credit. I would ask them to provide you with the paperwork showing that you were a cosigner, because frankly you walked into a bank and signed paperwork and you don't sound sure about what it was. You may well be the cosigner which is why you don't just walk into a bank and sign stuff. If they are unable to provide you with any paperwork, send them a letter disputing the chargeoff. If that doesn't go anywhere dispute it with the credit bureau. That is the most you can effectively do that requires them to legally act. If it is a small bank that only operates in your state, then you can file a complaint with your State Attorney General. If it is a national bank, then you can file a complaint with the Office of the Comptroller of the Currency (occ.gov). Lastly, you could try a complaint with the BBB.

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Postby MemberSince99 » Sat Mar 02, 2013 4:51 pm

Their requirement to "legally act" consists of asking the creditor "Is this valid" to which the creditor almost invariably responds "affirmative" and then the CRA turns around and says the creditor "validated" this debt and thus it stays.

That's the game they play. It's a joke. They are not required to prove a thing. They could say I owe them 10 trillion dollars, and if they "affirm" it is true, then in the eyes of say Experian, it's true, and it would stay.

And what are your options if that happens which it surely will? To complain to the FTC who will do nothing unless a LOT of people complain about the same thing, and complain to the BBB which will do NOTHING in terms of removing this from your report, no more than complaining to the FTC will. You can't even sue the CRAs apparently. Nor can you sue the creditor and force them to remove it. Ironically, if you post on a social media site what lying rotten scumbags THEY are, they CAN sue you for that!

But the WAY bigger issue here, is them coming down the pipe for 23k plus costs, which will push it over 25k no doubt pretty easily. She needs a lawyer and needs one NOW. The collection is a minor point compared to getting a judgement and then garnished for that kind of money. Only a lawyer can truly help.

s.jessica
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Postby s.jessica » Sat Mar 02, 2013 7:42 pm

My lawyer already checked, the bank said there was no record of me being a cosigner for the loan. I don't know if it makes a difference, but the original bank was bought out by a bigger bank and is no longer there, but the records were passed on to the new bank.

My lawyer said the bank should have had me sign papers for the sale of the vehicle which they didn't, my name should have been on the title which it wasn't and I should have been contacted as soon as he missed his first payment, which I wasn't. Also he said I should have received a certified letter prior to the sale of the vehicle giving me the opportunity to get the loan current before the sale, I should have received a notice of the amount due after the sale and I should have been notified before it went to collections.

How my name and information showed up is a bit of a mystery because the collections department claimed he didn't have a cosigner until they were ready to sue him then realized they couldn't get blood out of a turnip. After being told he didn't have a cosigner 50 times by the collections department, finally someone said "oh, I see you do have a cosigner". My lawyer asked them for a copy of the paperwork and all they could come up with is my credit application so he told them they needed to knock it off. They responded with it seems they made a serious error and my credit reports would be updated accordingly.

I just looked again and it was reported as a collections and it was updated to "credit charge-off reported as uncollectable by creditior"

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Postby MemberSince99 » Sat Mar 02, 2013 8:44 pm

Wow.

Some of these banks really don't care WHO they get money out of as long as they get it out of SOMEONE.

If you hadn't gotten a lawyer, they'd have taken you to the cleaners. Good for you for taking care of that.

This is a perfect example of why we need the right to SUE creditors AND the CRAs for posting information on us that is known to be false.

You can contest it with the CRA, and with the bank. I don't know that realistically you have any other options under our legal system which looks after the rights of the elite at the expense of the rest of us at all times. I tried to dispute inaccurate information on my report too, and got nowhere through all the legal channels. They really don't care, though of course the hypocrites (CRAs) talk about how accurate their information is and blah blah balh BS BS BS. More of the buzzword laden PC BS that communicates nothing whatsoever which is what makes corporate America in all of its insanity go round. Sorry, that's kind of a tangent though relevant to this post, they drive me nuts, I truly hate corporate America, mostly because I've worked for these lunatics for a lot of years and long for the day I don't anymore.

s.jessica
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Postby s.jessica » Sat Mar 02, 2013 10:36 pm

The screwy thing is, when we went to the bank there was never any agreement I would cosign for a personal vehicle for him, it was something completely different. Also, I just noticed the bank never pulled my credit back then, in fact it appears the collection department pulled it just before they contacted me. I just don't understand how the bank and collection department both said he didn't have a cosigner then at the last minute, ooops he did. The only thing that looks bad is the fact that somehow, the collection department got my personal info and I'm not sure how that happened. I'm just kind of thinking he told the bank I would cosign for him, but I didn't and they somehow didn't notice and passed the loan through. All I know is they couldn't produce the paperwork.

I don't know what it did for him, but I know he went and pulled the BK card on them. He's a smart @$$ always out to teach somebody a lesson - and he needs someone to kick the holy crap out of him!

Now I'm just wondering if I'll be able to apply for any better cards with this crap on my credit reports.

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Postby MemberSince99 » Sun Mar 03, 2013 12:32 pm

Most likely, no, because any of the better lenders will not like seeing a brand new collection your report. You really should get it removed before bothering applying.

And again, with friends like him, you really don't need any enemies.

kcarter609
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Postby kcarter609 » Sun Mar 03, 2013 1:30 pm

You know, if we run a credit app or put a loan with a cosigner that isn't physically there with 2 forms of ID to prove it's them, we get in trouble. Lots of it. For example, if a kid came in to apply, then called his dad to get the dad's info for a credit app and filled out his dad's info as the cosigner and we let it go through, and the dad finds out and files charges, we're liable for a MINIMUM of $10k in fines. I don't know how this bank and car dealer let this happen. They are usually very strict about this stuff because of the fines.

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credit_card_fonz
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Postby credit_card_fonz » Sun Mar 03, 2013 8:21 pm

They can't say you were the cosigner on this loan if you were not. Since they finally said you were, it's likely you did indeed cosign the loan but didn't understand what you were doing, then the bank misplaced your information but found it later when your friend told them to get the money from his cosigner. They would have had to get your SS# and other personal information to turn you into collections. Legally you may not have to pay the money back, but that doesn't excuse the moral obligations.

Also, keep in mind the cosigner has an obligation to pay if the person cosigned for does not. My guess is the entry will stay on your credit reports for at least 7 years keeping you from getting any new credit for at least 2 years and while the collection agency may not be able to sue you, the negative entry will remain and your friend may be able to sue you for failure to pay.



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