This is really sneaky! Household Finance AFTER filing

[momof5]

I have a personal loan through household finance actually it was more like a credit card because the limit was 16,000(they kept raising it every time I would get close to the limit!) and it came with checks to take money when you needed/wanted.

So tell me what you think of this.....

I receive a blank envelope in the mail today. No return address. I open it and its a paper that has no heading only the address of Household Finance (I only knew this because I used to make payment at the local office). There is NOTHING on this paper that says Household finance.

It says:

Dear Applicant:
Thank you for your recent loan application. At, We're here to try to help you reach your goals with the money you need blah blah blah

Reasons for credit denial:
Your requet for a consumer loan was carefully considered and we regret that we are unable to approve your application for the following reason(s):

Notice to New York residents:
The New York fair Credit Reporting act give you the right to insepct and receive a copy of your Credit Bureau report by contacting the Credit Bureau named above.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Notice how they put this in without naming who they are, it was not a typo on my part:
At, We're

After following reason(s) there is NOTHING!!!!

There is NO credit bureau even named on this paper. What do think they are doing sending this? Do you think they are trying to make it look like I just opened that account to try to object? I have had this account since 2003 and have not used it since October of 2007.

Either way its really sneaky as there is no way to know who this is from other than by looking up the address online.

Edit to add: The more I think about this the more I am fuming. Technically it is not a paper trying to collect a debt BUT it does have me so nervous that I want to call them and remind them I filed BK. I guess I feel like I shouldnt have to. I figure they want me to call so they can harrass me. They got the notice, there is no way they didnt. And even if they didnt receive the notice there would have been no reason for them to hide who they were on this paper.

[sharksfan]

It sounds to me like they closed your account due to your BK filing. This letter may have been sent in error (instead of a 'we closed your account due to bk' letter).

I wouldn't worry

[Flamingo]

I wouldn't even worry about it. Shred it and toss it. You've filed it doesn't matter what they send you.

[Cali]

A waste of energy, shred it and go on with your day.

[momof5]

Talked to the paralegal tonight and she had me fax it over so the attorney could look at it in the morning. They have had many problems with HouseHold finance over the years.

I'll let you know what he thinks.

[WhatMoney]

I think the night janitor knows the password at the HF office, and while snooping around accidently punched the key that sent you a blank form letter. After all, that is all it is, a standard loan rejection form letter where none of the specific information is filled in. It has as much significance as an unused sheet of toilet paper.

[Crainial Access]

I received the same letter from them AFTER getting money for a loan.......wonder if the local offices approve loans independantly from the home office?

[momof5]

I think the night janitor knows the password at the HF office, and while snooping around accidently punched the key that sent you a blank form letter. After all, that is all it is, a standard loan rejection form letter where none of the specific information is filled in. It has as much significance as an unused sheet of toilet paper.

Its not completely blank. It has my name and address on it. So someone was in my account.
I have not heard back from the attorney but I just found a posting online where HFC is known for some backwards tactics to try to collect AFTER a BK is filed.
I received 4 emails from the over the past 4 days as well. They are all coming out of the local office as the IP address give that away. Even the emails clearly say... we are trying to collect a debt trying to get me to send the stimulus or how about the one that suggests I look into funds saved in my 401K. Thats what makes me think they are trying to pull something.

These are the same people who used to call several times a week trying to get me to convert my personal loan into a home equity loan. How many times does one need to be told No before they understand that NO is NO.

This site has been useful to as there are several posts about HFC and the trouble people have had following filing bk on a loan they had with them. One guy had to take the issue all the way to his states attorney general.

Apparently there are no current members who have had issues with them post bk.

[momof5]

I received the same letter from them AFTER getting money for a loan.......wonder if the local offices approve loans independantly from the home office?

Thats the thing. I have not applied for a loan from them since 2003 and at that time I was approved. I have been with them 5 years and have not once received a 'mistake' mailing. They have always been clearly HFC...big bold letters. They want you to know who they are.

[sharksfan]

I received 4 emails from the over the past 4 days as well. They are all coming out of the local office as the IP address give that away. Even the emails clearly say... we are trying to collect a debt trying to get me to send the stimulus or how about the one that suggests I look into funds saved in my 401K. Thats what makes me think they are trying to pull something.

Make sure you forward those emails on to your attorney. AMEX tried pulling the same $#!t on me.

[WhatMoney]

First time I've heard of debt collecting by e-mail. Are you saying they are not identifying themselves in the e-mail? Is there a phone #? What is there e-mail address? Sounds fishy to me. A legit letter should have names, addresses, phone numbers, and your file number included, and you should be able to confirm they are legit and not a scam.

[Flamingo]

Since you just filed on 5/29, which is only 8 business days ago, it is probable that HFC did not yet receive paperwork that your filed and what you are getting is the usual collection crap that is sent out since the amount owed is way overdue. All that should trickle down and stop shortly once all creditors are notified. I wouldn't worry about a thing. We still had creditors calling a few weeks after filing and it all stopped shortly thereafter when all creditors got notice. It just takes longer for some.

[FreshLikeADaisy]

Flamingo, true enough, but if I'm not badly mistaken, HFC is one of the major creditors that has signed up for electronic notification. I guess Momof5 will know soon enough: these bizarre "not-collections" efforts will either stop in the next week, or continue unabated.

Mom, since you have already filed, if there is any contact number on any of their communications feel free to give them a call and act as though you are going to pay. Don't actually SAY you will, just act as though that is your intent. Say, "I received your letter and I really want to take care of this. Can you help me?" Oh, yes, they will be only too happy to help you. Say, "I wanna give you my account number." Oh, YES, they'd love you to give them that information! Make sure they have pen and paper handy, because you want them to write it down.

Then give them your case number.

Good luck!!!

[momof5]

A waste of energy, shred it and go on with your day.

Turns out it was NOT a waste of energy!

Freshlikeadaisy is correct they were notified electronically. As well as notified by mail to 2 other addresses, one of which was local.

Its a darn good thing I went along with my feelings. After talking with the attorney and him seeing this paper about a loan even he instructed me to call the local office and tape it so he could hear what they are saying. He has had several cases over the years where clients have been put through the ringer by these people. As far out as 2 years after filing.

So I call.... I was very nice and asked them to kindly check my account. The man asked me to 'wait a couple minutes'. About 5 minutes later he gets back on and you wont believe this but says " I see you have applied for a personal loan"
I said " No I have not"
He ignores me and says " We can approve this loan if you can stop by later this afternoon, We need an updated signature"

This is when I told him "I am taping this conversation and that I know he knows I have filed for BK as it should clearly show in my account"

He starts stumbling on his words and asks me to hang on another minute.
A lady gets on the phone and says " Mrs. XXXX, I would like you to be aware that even if you have filed bankruptcy, debts with Household finance do not just disappear. We are offering you a loan to pay off your minimum due so you can get your account back to good standing and up to date"

I said " You have got to be kidding me! I am in the middle of a chapter 7 bankruptcy that you are well aware of and you want me to take out another loan with HFC so that I can pay a tiny amount towards a much larger debt and then end up worse off than I am now?"


She hung up on me!!!

The attorney thinks this may be enough to get them off my back for a couple days but his experience is that they come right back. He told me not to worry because we have enough at this point to make them stop whatever they are doing."

Its kind of funny but he is definately passionate about this subject. Wish I had this enthusiasm and support all along!

Moral of this story folks...NEVER EVER EVER EVER just shred it and go on with your day.

[WhatMoney]

Perhaps with the phone recording your attorney can file an action against HFC. Maybe the idea of the blank "none-loan" loan letters they sent you was to avoid a paper trail for this violation of the stay.

Some people would be gullible enough to essentially reaffirm a loan already to be discharged, and get stuck with two new non-dischargable loans from HFC. The guise was to "stop by to update your signature", offered only on the phone. HSBC and HFC are all crooks - they've been fined many times for their shady operations.

If you had just ignored and trashed the letters though, what could they have done? Unless they would draw up a phony loan application and forge your signature without your knowledge, I don't see how you could get stuck.