Credit Union refuses to quit reporting Bankruptcy

[walkingant]

First off, if this is answered somewhere already I do apologize as I could not find anything like this problem.

My wife and I filed bankruptcy on Nov 17, 1995. And it was discharged on 5/03/1999. I have copies of the filing and discharge.

All of the creditors immediately stopped reporting on those debts when we filed except for ******* No. 1 Federal Credit Union.

They have continually reported the bankruptcy to the credit bureaus. The last time they reported our debt as "discharged through Bankruptcy" on April 14, 2004. And that resulted in "this will appear until April 13, 2011".

I have talked with the credit union several times. Each time I am told. "its our right to report your bankruptcy for as long as we like". Last time they also stated: "As a Federal Credit Union we are not restricted by the 7 year Bankruptcy laws".


This is hurting my credit as it is already 12 years since we filed.

Do I have any legal recourse?

If its on our credit report until 2011, that would be 16 years on our credit report. That is unless the credit union again reports it to the credit bureaus and starts the 7 year reporting again.

While our credit file is no means perfect, I feel their continually reporting a bankruptcy is hurting our credit score immensely.

*edit addtion: I have disputed my credit report with two of the agencies, both kept it as reported.

Anyone's thoughts?

Thanks

Dave

[lrprn]

My wife and I filed bankruptcy on Nov 17, 1995. And it was discharged on 5/03/1999. ... All of the creditors immediately stopped reporting on those debts when we filed except for ******* No. 1 Federal Credit Union. ... Each time I am told. "its our right to report your bankruptcy for as long as we like". Last time they also stated: "As a Federal Credit Union we are not restricted by the 7 year Bankruptcy laws".

Good golly....sigh....do these credit unions think they own the world????

Bankruptcy is a FEDERAL law. Even a federal credit union has to follow federal law. These idiots are also violating yet another FEDERAL law, the Fair Credit Reporting Act - http://ftc.gov/bcp/conline/pubs/credit/fcrasummary.pdf

"Consumer reporting agencies may not report outdated negative information. In most cases, a consumer reporting agency may not report negative information that is more than seven years old, or bankruptcies that are more than 10 years old."

Try contacting the National Credit Union Administration first and tell them your story - hopefully they can bring this puffed-up bunch of folks into line:
National Credit Union Administration
1775 Duke Street
Alexandria, VA 22314
703-518-6360

If they can't help you, since the credit union is still making your bankruptcy appear within the ten year period on your credit report AND it also looks like they have re-aged your bankruptcy by reporting the wrong date (also against the FCRA law), I encourage you to contact a consumer protection attorney and see what can be done to force them to obey the bankrutpcy law. Here's where to find one in your area - http://naca.net/find-consumer-protection-attorneys/ - most work with no retainer if your case is a strong one knowing they will win the case and be paid that way.

Keep us posted about what happens, ok? What this credit union is doing is illegal - I hope you get a goodly amount of money out of them if you can prove that you haven't been able to recover from bankruptcy (get loans, better credit card rates, etc) because of their actions. Go get 'em!!

[Boscoe]

Yes, the reporting of negative info period is 7 years from the date of first delinquency, which in your case is Nov 1995. So, as of Nov. 2002, this should have fallen off your credit reports.

So, any denials for credit after this date you could make a case for. Certainly after Nov. 2005, which is the latest possible date a bk could stay on.

As lrprn says, go find an attorney who will fight this for you, preferable on a contingency basis. This is wrong wrong wrong what they are doing.

[tinroofrusted]

Bankruptcy can remain on a credit report as long as 10 years. After that, it's legally not supposed to be on there.

File with the State AG that you are in also!

[walkingant]

Thanks for Responses

Thank you for the responses. I am not sure if not removing my past bankruptcy is the Credit union's policy or simply one clerk who took the bankruptcy personally.

I will pursue this matter and post developments and outcome here. Thanks

[walkingant]

Added info...

I did find out that a chapter 13 if it was "discharged" can only be on my credit report for 7 years. I found my discharge papers, dated March 5, 1999.

So the Credit Union was reporting damaging information two or more years after that bankruptcy should of came off my credit report.

The bankruptcy is still on my credit report a full 5 years after is should of dissapeared. Filed 1995--7 years---2002.

One question--is there any circumstance where the bankrutpcy date can be re-aged?

If any of this is wrong please comment. Thanks

[Boscoe]

I don't see how a bk can be re-aged. Discharge date is discharge date. If you have the papers with the official date, you are ok.

Just to clarify, it is not 7 years from discharge date, but 7 years from FILING date.

[Elf]

I have the same problem with a credit union.

Hell hath no fury-- and it's not women-- it's a credit union.

I protest their reporting. They remove it.

A month later-- they put the derogatory information back on the report. I firmly believe that they want me to spend my hard earned money to take them to court. They see themselves as outside the law. Congress needs to put a stop to thier crap. It's the only way. I suffered through a CH13. I should be done.

I HATE credit unions.

[walkingant]

Update--

Well, I didn't have much luck with the credit union in question. But I did get the CRA to remove the information. I also contacted an attorney whose only advice was.."drop it, since they removed the bankruptcy from your credit report".

I am watching to see if Pot**** No. 1 Federal Credit Union reports it again.

I feel I was damaged from 2002 to 2007 because that bankruptcy entry was on my credit report, and yes, in that time I have been denied credit. While my credit is not great, I am sure that the bankruptcy inclusion for those extra 5 years did harm my ability to recover from the bankruptcy and to obtain loans--in particularly a lower rate mortgage.

Comments?

Thanks