Paid off overdrawn joint bank acct w/line of credit, why is it on my CR as chargeoff?

[stressedoutgirl]

What is the name of your state?What is the name of your state?:CA

Hi, strange situation with a former bank account and a derogatory mark on my credit report that I feel is the result of a bank error. I'd appreciate any advice/tips any of you may have.

Had a joint checking acct, where my name got ADDED at Wash Mutual, after my boyfriend already had the checking acct for 2 years with a pre-existing $1500 line of credit (against his credit only originally) to be used as overdraft protection for the account. We were engaged. Got married, then annulled. Before the annulment went thru, he freaked out about finances and wrote a whole bunch of checks that he cashed which overdrew the acct by about $4,000 total ($2,500 in cashed checks plus the $1,500 which was already owed on the line of credit from overdrawn stuff before). I confronted him, he agreed to put the $2,500 back in, I agreed to pay off the $1,500 and close the account on the same day. When I called Washington Mutual Bank about this before, they said I HAD to have a zero balance to close the account and it had to be for the total (checking overdrawn amount plus the line of credit total).

So we did this. I went to the bank and confirmed that he deposited $2500 in cash that had cleared. I gave them $1,500 in cash. I asked for a slip showing a zero balance on the account after I made the deposit and before the account was closed (I have to dig for it somewhere)! Then I also called the collections dept from inside the bank, and had the bank branch manager personally get on the phone to tell the bank collections dept/confirm that I made the payment for what was due on the line of credit AND insufficient funds overdraft amount before I closed the account. I then additionally called the customer service # and asked for a letter confirming that the account was closed, with all outstanding amounts paid. I only got a standard letter confirming that the account was closed (which I still have and is readily available).

About 4 months later, my ex got calls and letters from Washington Mutual saying $1,500 was still owed for the line of credit. He said they made a mistake, since we paid it off; ripped up whatever they sent him, and told them when they called. Now he's declared bankruptcy and it's hit my credit report as "unpaid" and as a "chargeoff" from the bank. What can I do? I'm afraid if I go back to the branch and ask them to trace my overdrawn balance, deposits, and subsequent zero balance on the date of my account closure that they might be unhelpful or not have the info anymore? I'm also afraid if I call the bank collections dept. they'll just tell me according to their records it's still outstanding, no matter what form letter I got! Can the banks then still come after me or try to sue me? How do I get this error confirmed by the bank AND force them to delete this bad mark on my credit record at all three CRAs? HELP!

[Veronica1228]

Originally Posted by stressedoutgirl

What is the name of your state?What is the name of your state?:CA

Hi, strange situation with a former bank account and a derogatory mark on my credit report that I feel is the result of a bank error. I'd appreciate any advice/tips any of you may have.

Had a joint checking acct, where my name got ADDED at Wash Mutual, after my boyfriend already had the checking acct for 2 years with a pre-existing $1500 line of credit (against his credit only originally) to be used as overdraft protection for the account. We were engaged. Got married, then annulled. Before the annulment went thru, he freaked out about finances and wrote a whole bunch of checks that he cashed which overdrew the acct by about $4,000 total ($2,500 in cashed checks plus the $1,500 which was already owed on the line of credit from overdrawn stuff before). I confronted him, he agreed to put the $2,500 back in, I agreed to pay off the $1,500 and close the account on the same day. When I called Washington Mutual Bank about this before, they said I HAD to have a zero balance to close the account and it had to be for the total (checking overdrawn amount plus the line of credit total).

So we did this. I went to the bank and confirmed that he deposited $2500 in cash that had cleared. I gave them $1,500 in cash. I asked for a slip showing a zero balance on the account after I made the deposit and before the account was closed (I have to dig for it somewhere)! Then I also called the collections dept from inside the bank, and had the bank branch manager personally get on the phone to tell the bank collections dept/confirm that I made the payment for what was due on the line of credit AND insufficient funds overdraft amount before I closed the account. I then additionally called the customer service # and asked for a letter confirming that the account was closed, with all outstanding amounts paid. I only got a standard letter confirming that the account was closed (which I still have and is readily available).

About 4 months later, my ex got calls and letters from Washington Mutual saying $1,500 was still owed for the line of credit. He said they made a mistake, since we paid it off; ripped up whatever they sent him, and told them when they called. Now he's declared bankruptcy and it's hit my credit report as "unpaid" and as a "chargeoff" from the bank. What can I do? I'm afraid if I go back to the branch and ask them to trace my overdrawn balance, deposits, and subsequent zero balance on the date of my account closure that they might be unhelpful or not have the info anymore? I'm also afraid if I call the bank collections dept. they'll just tell me according to their records it's still outstanding, no matter what form letter I got! Can the banks then still come after me or try to sue me? How do I get this error confirmed by the bank AND force them to delete this bad mark on my credit record at all three CRAs? HELP!

Well, you don't say how long ago this was, but since they are trying to collect on it I'll guess it's less than 7 years which is the normal amount of time that banks keep records. I recommend you first find your last bank statements for this time period, the letter you were given and anything else you have and contact the bank to see if you can straighten this out. At this point, you don't even know if they will be willing to work with you or not. At least give them one shot to get this all cleared up.

[efflandt]

The line of credit may have accounted for the short of the checking account, resulting in a zero balance at that time. But the question is, was the line of credit itself actually paid off? That is usually deducted, with interest, from the checking account later.