CRA -> Active 13 -> reporting lates = violation of automatic stay?

[kags1969]

[lrprn]

Does anyone know if reporting lates in an active 13 violates the automatic stay?

The argument I've heard creditors use for doing this is that if you were late paying even one day on the account on the day you filed, they can leave that in place because "late" is the true state of the account. Once your case is discharged and closed, then they will change it over to IIB. Not saying it's right, just saying that's the creditor side of this argument.

Unless there's something specific in the Fair Credit Reporting Act or in your state's consumer protection laws, I haven't run across any case law stating this is not allowed.

[HHM]

First, do you have any late payments? Did the late payments occur before or after you filed BK?

If the "lates" occured before you filed, then the creditor can continue to report those late payments.

[kags1969]

Let me clarify my question a little. I understand that if you are late or that the orignal creditor had Charged off (CO) the account prior to filing that those lates and CO's remain on your credit report and age as such.

My question is about late payments or CO's being reported AFTER you have filed your chapter 13. Would the reporting of lates after your filing date be considered a violation of the automatic stay?

Thanks,
Kags

[HHM]

Let's get a little more specific,
1. Are these secured or unsecured creditors
2. Were these creditors listed in your chapter 13 petition
3. Were any of these creditors to be paid outside of the plan
4. Did you use any of the credit AFTER you filed BK?
5. Are the lates generating late fees and penalties on your balance with these creditors.

In any event, I don't think it's a violation of the automatic stay, but it is probably a violation of FCRA because, arguably, (depending on how you answer the above questions) the reporting of lates during an open 13 is misleading information.

Whether reporting lates is a violation of the automatic stay is a grey area. Strictly speaking, if the only thing they are doing is reporting to your credit report that payments are late, that is probably not a violation of the automatic stay because that is not an overt act to collect the debt. Now, if you called them and they said, "we will remove the lates if you pay us", that would be a violation of the automatic stay.

[kags1969]

Let's get a little more specific,

1. Are these secured or unsecured creditors

Unsecured.

2. Were these creditors listed in your chapter 13 petition

All were included.

3. Were any of these creditors to be paid outside of the plan

No, all included in plan.

4. Did you use any of the credit AFTER you filed BK?

No, all credit before filing and included in plan.

5. Are the lates generating late fees and penalties on your balance with these creditors.

Hard to tell if they are considering payments through the plan as offsets.

Just to update this almost all of the accounts were zero'd out w/ no late payments when I disputed. However there is one DELL/CITI account that still reflects a balance and a "past due" amount.

[HHM]

About all you can do is continue to dispute the entries on your CRA, and ask for an investigation.

IMO, I do not think it is a violation of the automatic stay, but it is probably a violation of FCRA. (but I could be wrong, but if you wanted to bring an action for voilation of the automatic stay, you would have to file a complaint in BK court, and essentially have yourself a mini-lawsuit.)