Not sure what to do....

[bkdone]

Okay...here's his response

Ooh! Smart move! Delegate work! You must have been a manager at one point, eh?

Bottom line is:
The statement is a recommendation of how the trade line should be reported, and not a definative rule or policy as to how it is actually to be done. I'm sure at some point the regulations will be changed and updated to include that discharge balances are required to be reported as a zero balance, but as of now, there does not appear to be any such law. Unfortunately, right now, it is open for interpretation.

If you guys find anything else...please let me know. All I can say is Dispute, Dispute, Dispute..and mail in copies of your documents!!! It worked for me...just today balances were zeroed out.


This is my original email to Jay...
BKDONE wrote:
Hi Jay,

I read your article posted on the Bankruptcy Network website. I have referenced your article below. Yes, it seems that this is indeed a hot topic, and I'd like to know what FTC code you are referring to. I tried to search the volumes, but there are so many and I cant seem to hit upon the right search term.

Is Incorrect Credit Reporting A Violation of the Discharge In
http://www.************************/...y/_Bankruptcy?

BKDone
------------------------------------------------------------------------

[bkdone]

Ooh! Smart move! Delegate work! You must have been a manager at one point, eh?

No, actually I am a Social Worker...a professional problem solver/miracle worker! I'm used to having to figure things out on my own...nature of gov't work I guess.

[bkdone]

Just an update...

Wells Fargo will NOT remove the balance of $6999 from my husbands credit report, it reads IIB, but they still leave the balance on. They say it is their right to leave the balance showing???? I have disputed twice w Experian and they say they have verified it as correct. I don't understand, is this even legal for them to report or leave on??

Just an update... I had to dispute the same type of thing. I first disputed it with the creditor's lawyer, who was a total jerk. He refused to remove the balance showing, although he acknowleged that they'd make no attempt to collect it. He's the guy who said to me, "Obviously...you understand the definition of 'discharge'."

I decided to dispute it directly with the credit bureaus. I mailed in a copy of my 'Certificate of Service', (highlight the creditor's name and the date they were noticed about the BK.) I also sent along with it, a copy of my discharge. You can mail things to Experian too...because online is sometimes not enough.

I mailed these documents along with a copy of the page from my Experian report, and a coy of my ID. All were mailed together on March 6th. Today, I got an email saying my report was updated and the balances were removed...now show '$0, discharged thru Ch.13 BK.'

Beautiful!!!

[chpxiii]

Before you spend your weekend working on it, let's see what the author of the article has to say. I emailed him today and asked him for the reference in the FTC that he cited. I will let everyone know what he says...if he responds.

Ooh! Smart move! Delegate work! You must have been a manager at one point, eh?

[bkdone]

I'll take some time this weekend to look and get back to you guys.

Before you spend your weekend working on it, let's see what the author of the article has to say. I emailed him today and asked him for the reference in the FTC that he cited. I will let everyone know what he says...if he responds.

[chpxiii]

I'll take some time this weekend to look and get back to you guys.

[bkdone]

http://www.************************/...in-bankruptcy/

Check that out.

It's not just unfair, it's illegal.

You have definitely peaked my curiosity...but the FTC is huge! Does anyone know where this reference is from...what is the resource or section? I'm looking but I havent found where this guy has gotten this info.

[coma]

Thanks for that link!

[chpxiii]

http://www.************************/...in-bankruptcy/

Check that out.

It's not just unfair, it's illegal.

[bkdone]

bkdone: interesting.

This is what I have learned, however, I may have learned incorrectly.

Showing a balance on one's credit report is considered an act of collection. If a creditor was included in a bankruptcy and it was discharged, to try to continue collections effort is a violation of the stay of bankruptcy. Therefore, showing an amount due on a credit report is considered collections and is a violation of the stay of federal bankruptcy laws.

The balance should be $0 with amount due being $0 and the status of "Included in Bankruptcy" or some such indication that it was included in a bankruptcy.

Like I said...unfair...but ck out my old thread! Discharged, but the creditor is reporting me delinquent...HELP!

[chpxiii]

bkdone: interesting.

This is what I have learned, however, I may have learned incorrectly.

Showing a balance on one's credit report is considered an act of collection. If a creditor was included in a bankruptcy and it was discharged, to try to continue collections effort is a violation of the stay of bankruptcy. Therefore, showing an amount due on a credit report is considered collections and is a violation of the stay of federal bankruptcy laws.

The balance should be $0 with amount due being $0 and the status of "Included in Bankruptcy" or some such indication that it was included in a bankruptcy.

[bkdone]

Nope...you guys are wrong!

Sorry to tell you this, but it is perfectly legal that Wells Fargo is reporting this balance. The definition of 'discharge' does not mean a zero balance, just that the balance is no longer collectable by the creditor.

I posted this exact question about a year ago... A bankruptcy advisor weighed in on the topic, and also concluded the same. The creditor can show the last balance, but they cannot take any action to collect it. It seems unfair since that balance will never go down, and the creditor can still show it as current.

Look at my thread from exactly a year ago today...ironic huh? Type this into the search field to find it: 'Discharged, but the creditor is reporting me delinquent...HELP!'


You can try to dispute it, but it's not wrong what they are doing...although it seems so unfair.
I still have 3 accounts that are doing the very same thing. I have disputed them again, and I will see what happens.

[ameliabedilia]

Wells Fargo just did this to me as well. Bastards

[coma]

Check out this link.

http://creditboards.com/forums/index.php?showtopic=8033

[sofarindebt]

thanks

I have called them directly and they said as long as they report IIB to the credit report, they can show the amount that was charged off, they say they are not violating anything as long as they say the debt is IIB. So they say it is their right to show a balance. Is there anything in the bk law or FCRA I can directly show that they are doing something wrong??