Collection Agency Put Bogus Report on My Credit History

[mcwjjm]

What is the name of your state (only U.S. law)? ohio

I co-signed for a 10k student loan approx five [5] years ago with my GF. She never paid anything on it and has dodged all of the creditors trying to collect. Ultimately it got to the point where a law firm started contacting me about payment. At the time she was unemployed and living with her sister. I made arrangements to re-pay the loan. The balance was now 15k. I started making payments in August of 2009 and eventually paid $3108.00 before it came to my attention that since it was a student loan and not a government loan that my Chapter 7 filled just before the October 2005 deadline made this dischargeable. Yes, the loan was on my Chapter 7 documents but my attorney didn't make it clear to me [my fault for not checking the final documents and clearing with him]. Regardless, I contacted all parties and everyone confirmed that was discharged back in 2005.

I drafted a letter to Weltman, Weinberg & Reis in July 2010 informing them that I longer authorize them to makes withdrawals. I faxed them all of the legal documents on my Charpter 7 at the time. They still made a direct withdrawal on my checking account a few weeks later and I had to close it to prevent this reoccuring. I haven't heard from them since. Then today I was checking my credit report and I see they have put the 13k balance of the loan on my credit report! On the credit report it says the account is "closed" [since I closed the associated bank account] and under payment status reads "Seriously past due date/ assigned to attorney, collection agency, or credit grantor's internal collection department."

I spoke with my attorney who filed my Chapter 7 asking him what my next move should be. He said just to wait and see if the take me to court, which seems pretty obvious that is what they intend. I did receive a judgement in municipal court a few months ago vs my XGF for the portion I did pay on the account [$3108.00] and in the process of having her wages garnished. TIA!

 

[racer72]

When you started paying on the debt again, you voluntarily reactivated the original contract. Nothing in your post suggests the credit entry is invalid. The entry reads closed because the original creditor has closed their books on the debt, not because you closed your bank account.

 

[mcwjjm]

When you started paying on the debt again, you voluntarily reactivated the original contract. Nothing in your post suggests the credit entry is invalid. The entry reads closed because the original creditor has closed their books on the debt, not because you closed your bank account.

This point has been raised before. I spoke with my attorney and he told me that a reaffirmation agreement must be filed within 60 days after the meeting of creditors date. It's my understanding that when there is no attorney acting on your behalf [as in my case], the Court usually wants to meet with the debtor to make sure the debtor knows that the reaffirmation is completely voluntary. Also if the judge does not believe that a reaffirmation agreement is in a debtor’s best interest and may not have the ability to pay, the judge may refuse to allow the reaffirmation agreement to be entered as a binding agreement. This case was opened in June 2009 and I began making payments in August 2009. There was no reaffirmation agreement filed with the courts, it was an agreement between myself and the debt collector.

 

[racer72]

And the reason the debt is valid:

I made arrangements to re-pay the loan.

This was done outside of the bankruptcy. Once your bankruptcy was discharged, any rules, especially those concerning reaffirmation agreements, no longer apply. The bankruptcy released your liability for the debt, you voluntarily agreed to re-assume the debt. This was done well outside the 60 day window your attorney spoke of.

 

[mcwjjm]

Thanks Racer. I've contacted a couple of Ohio bankruptcy attorneys and they confirm what my attorney told me. Guess I'll have to head on down to the State Law Library and investigate this further.

 

[CameronNewport]

And the reason the debt is valid:


This was done outside of the bankruptcy. Once your bankruptcy was discharged, any rules, especially those concerning reaffirmation agreements, no longer apply. The bankruptcy released your liability for the debt, you voluntarily agreed to re-assume the debt. This was done well outside the 60 day window your attorney spoke of.

I don't agree with any of that.

In fact, I think that the creditor may be in violation of the discharge, and in violation of the FCRA. The OP may be entitled to damages.

 

[racer72]

I don't agree with any of that.

In fact, I think that the creditor may be in violation of the discharge, and in violation of the FCRA. The OP may be entitled to damages.

Nowhere does the OP state that the creditor contact him about the debt, they contacted the girlfriend. The OP valiantly stepped up, even though he did not have to, and voluntarily agreed to pay the loan. Perfectly legal for a creditor to accept payments on a debt that was discharged by a bankruptcy.

 

[mcwjjm]

Nowhere does the OP state that the creditor contact him about the debt, they contacted the girlfriend. The OP valiantly stepped up, even though he did not have to, and voluntarily agreed to pay the loan. Perfectly legal for a creditor to accept payments on a debt that was discharged by a bankruptcy.

Originally Posted by mcwjjm I co-signed for a 10k student loan approx five [5] years ago with my GF. She never paid anything on it and has dodged all of the creditors trying to collect. Ultimately it got to the point where a law firm started contacting me about payment.

Let me clarfiy, the law firm in question I believe did not contact the original borower but addressed all corespondence to me alone. They 1st started with mail then repeatedly began calling me at work. To say they were aggressive would be to put it mildly. I asked them numerous times why they weren't pursing payment from the original borrow. I gave them her number, address and place of work but they chose to focus their efforts on me as it seemed obvious that after making zero payments in 5 years she wasn't about to now. And like I said, initially when they contacted me she was in no position to take care of herself or her children. Paying creditors was the least of her problems.