- Centurion Member
- Posts: 125
- Joined: Wed Dec 05, 2012 12:47 pm
- Location: Iowa
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?