Creditor Refusing To Correct Inaccurate Info.

[mark1210]

What is the name of your state? TX

So I have been discharged of a chapter 7 for 6 months now. I have disuputed an item that was included in a chapter 7 three times now. The creditor is reporting:

"*120 days late, open, charged off."

The account was current while in bankruptcy and should reflect current correct? I can't become late while in bankruptcy. Also, all the other items on my report reflect "Included in Bankruptcy" this item does not. Each time I dispute the information the bureaus indicate the item is being accurately reported per the creditor.

I spoke to the creditor and they are saying its a computer issue they cannot fix and that my report already has public court information saying I was in a bankruptcy so I should be ok. They have a 3rd party that reports the information on their behalf and they can't escalate my issue nor give me their number. He just said "keep disputing and maybe it will get fixed"

What should I do, what are my rights? I have paperwork from the court showing this item was included and discharged.

 

[Ladynred]

I spoke to the creditor and they are saying its a computer issue they cannot fix and that my report already has public court information saying I was in a bankruptcy so I should be ok.

Bullhockey... and it is NOT 'ok'. Reporting negative information on a discharged debt AFTER the filing date is a violation of your discharge and you could bring them up on Contempt charges in BK court. Also, a discharged debt cannot be 'open'. Neither can it be 120 days late or charged-off UNLESS that was the status of the account when you filed.

a computer issue they cannot fix

Garbage. They put it ON your reports, they can correct it or take it OFF and they have a duty to do so if the data is not accurate.

Put your dispute to the creditor IN WRITING. Per FACTA, you have the right to dispute what's on the report directly with the furnisher of the information but if you don't put it in writing it doesn't count.

There is case law that shows that reporting negative information to the CRA's on a discharged debt is a violation of the discharge:
http://207.41.19.195/scripts/show_matches.pl?file=decisions/20030903-pk-TERRI_J._GOODFELLOW.html&strings=Goodfellow

Debts included in bankruptcy should be reported as a ZERO balance, NO lates, not charge-offs, nothing past due after your BK filing date. If they refuse to correct this, take some action, sue them for FCRA violations AND/OR file a Motion for Contempt against them in BK court.

 

[mark1210]

Great suggestions, it's a mom and pop shop that does "friendly pay day loans" so I am not at all surprised by this. I doubt putting anything in writing will do any good. Is this a necessary step or can I sue them in small claims court? I'd prefer not to get another attorney, I just paid mine off for the bankruptcy.

Any idea where I can view a sample letter that illustrates what you mentioned?

 

[Ladynred]

If you don't do your due diligence and send your disputes, then you lose certain rights of action under the FCRA. You can haul them into bankruptcy court for contempt but doing so means re-opening your case. If necessary, if they refuse to correct, send them an 'intent to sue' letter, and cite the case law I gave you the link to. If they continue to ignore you, sue them.

You can find all kinds of sample letters for disputes, intent to sue letters and such at www.creditinfocenter.com and www.creditboards.com.

 

[mark1210]

Thanks for the info yet again =) I sent them a certified receipt letter to them yesterday informing them of the problem, why I know its invalid, and supporting papers that reflect this information. I gave them 10 days to write me back concerning their findings. How do I go about bringing them back to bankruptcy court? I guess I would need to file another petition or perhaps contact the court clerk for info? I used an attorney to file BK but I don't want the expense again this time around since i just paid him off.

 

[Ladynred]

How do I go about bringing them back to bankruptcy court?

You would have to file a motion to re-open your bankruptcy case, and your reason for doing so would be the motion for contempt.