View Full Version : Despite Bankruptcy Discharge, Creditor Refuses to Update Account Info


caralyanne
I filed bankruptcy and my Bankruptcy Discharge Order became effective in Apr 2000.

I filed the bankruptcy so as to allow consolidation of 13 student loans that defaulted while I was overseas (university failed to file waiver pymts for second semester) - all PERFECT status now, and, ironically, only had, one (1) account to discharge in the bankruptcy, a car vehicle, that I had traded in for another vehicle prior to filing, the car dealer did not apply the correct full pay-off to them so they had repossessed 'from' the car dealer's lot.

Unbelieveable situation, esp as I had never been late in pymts and had prior to and since, paid off over newer three vehicles in full and ahead of term!

The SITUATION, now! The credit union, of course, was included in the discharge (they never even challenged). My problem is that, for the last three years, the credit union's credit reporting agent "refuses" to update my account status to reflect $0 balance and account closed.

I have insisted, in formal credit bureau dispute processes, that he of course has the right to remark, "Discharged in Bankruptcy" and High Balance, but that he, per Bankruptcy Law, MUST update the account to be closed and $0 balance.

In checking my latest Trans Union report, he just updated the report to reflect even WORSE, inaccurate info as: Account- "Open", Current Balance- $8,000 and Remarks as "Repossession" and with a Date Reported as : 02/2003!

He is stating that he is allowed to report this bad debt this way and that he does not have to change it's account status, balance amount or remarks.

I am, literally, STUNNED... does anyone, off-hand, know the Bankruptcy Law, Fair Credit Reporting Act or Supreme Court citations I need to send him (or the credit bureau) showing him, by Bankruptcy Law 101, he HAS to do this?

I also read somewhere that if they violate this, there is a $1,000 fine each time they refuse to comply... boy, that might make him comply (and me and a good lawyer happy? (-:)

I am being refused credit on a new home (for the last month) because of this (and have told him and the credit bureau this).

The credit bureau claims, laws or not, they only update based on what creditor responds with and nothing else...? Sorry for so lengthy, but I am so stunned and need some direction here, I'm literally spinning!

Christine
Your story really is unbelievable.

I've never heard of anyone having to go bankrupt to consolidate student loans.

And the car, that wasn't YOUR fault - you should have sued the dealer.

And now the Credit Union, well it really is incredible, but unfortunately not that uncommon.

There's no $1,000 per violation, but there's definitely money to be made, IF you got good documentation.

Read the COMPLAINT at "After bankruptcy "credit reporting violations by First USA, Trans Union and Equifax (http://forum.creditcourt.com/discus/messages/953/953.html)

"Plaintiff attorney: Bybee -- Cause: FCRA
filed in Phoenix federal district court 1/8/03

First USA re-aged a 1992 discharged account to a 1998 and 2000 collection/charge-off NOT "included" by TU and Equifax. Both CRAs VERIFIED this incorrect reporting after numerous disputes by Chase.

Note that the CRAs ARE liable, and attorneys always sue the CRAs when they ignore disputes.

Unfortunately I haven't had time to transcribe the complaint - if anyone has some spare time, it sure would help with posting the codes and excerpts for discussion.

And of course people could just copy the complaint and modify it to their case if they can't find an attorney.

lwpman28
HERE IS WHAT YOU CAN DUE,

YOU CAN GOTO THE BANKRUPTCY COURT, PAY A SMALL FILING FEE AND FILE A MOTION OF CONTEMPT OF COURT AGAINST THE CAR DEALER AND THE CREDIT BUREAU FOR NOT UPDATING.

THE COURT WILL ASK IF YOU SENT CERTIFIED LETTERS OF DISPUTE WITH A COPY OF YOUR SCHEDULE F AND DISCHARGE TO THEM. IN A NON ASSET CHAPTER 7 ITS DOESN'T MATTER IF SOMETHING WAS LEFT OUT ON YOUR SCHEDULE F , SINCE THERE ARE NO FUNDS TO DISTRIBUTE BETWEEN CREDITORS THEY WOULDN'T OF LOST ANYTHING SO WHAT PROOF OTHER DO THEY NEED THAT YOU FILED?


JOHN

lwpman28
The credit bureau claims, laws or not, they only update based on what creditor responds with and nothing else...?

if you sent them a cerified dispute with proof of filing and discharge and they ignore it..........


Credit bureaus if they refuse to correct information after being provided proof its Defamation, willful injury.FCRASection 623

i think you can only sue the credit bureau in a state court.
the credit union is in contempt of the bankruptcy court if they were included in your bankruptcy and they refuse to report included in bk and a zero balance. provided you prove to the court proof you disputed it and gave them 30 days to investigate.
court will want proof of notification.

its only a $1000.00 fine from each court if you win

Christine
The case against First USA is in federal court, and so are most FCRA cases - after all, it's federal legislation.

The monetary awards are based on actual and punitive damages.