I submitted a complaint with the BBB due to the inaccurate way LVNV was reporting a paid account on my credit reports (I had tried numerous times to get it straightened out with them first.)
Here's the response I got
Dear Ms. xxx:
This letter is in response to your correspondence dated June 5, 2012 regarding the above referenced account. We have reviewed the credit bureau information submitted by Ms. xxxx Please be advised our office submitted a request to remove the “disputed” notation from Ms. xxxx credit bureau report on May 17, 2012. It can take the credit reporting agencies between 30-45 days to update the information provided to them. If the credit report Ms. xxxx provided to our office was pulled after May 17, 2012, it is very possible the bureaus have not yet made the appropriate updates to the tradeline. Additionally, our records indicate this account is reporting as “account paid in full was a collections account.”
Please be advised there are five available portfolio types for reporting:
At the direction of the consumer reporting agencies charged off debt is reported as an ‘Open Account.’ We are not reporting the account as “120 days past due.” The statement “120 days past due” is generally how a charged off account is defined by the credit bureaus. Due to the account being charged off, the bureaus still report it as 120 days past due. This comment is added by the bureaus to further define the account; therefore, this statement cannot be altered.
The consumer reporting agencies define factoring company as a company or individual who purchases accounts with the intent of collecting debts owed. Therefore, the term is accurate in this situation.
If you have any further questions, comments or concerns, please contact Customer Service at 888-665-0374.
Sincerely,
xxxxx
Compliance Department
Resurgent Capital Services L.P.
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What I dont understand is why it's not reporting as a collection account, and why even tho it's paid, it's still reporting as Open. From what I understand, it's only considered open if there is still a past due balance. On all of my reports - this account is showing up under "open accounts", and not under "Collections".
What should I do next?
If the charged off debt is a credit card debt then there is no way that LVNV can claim Factoring Company.. Credit card charge offs cannot be purchased by a factoring company. (from my understanding)
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Is the account status reporting as "open" or the account type "open?" There's a difference that you need to understand. In your case, if I'm understanding correctly, neither should be reporting as open.
An "open" account type means it's a revolving account. This would only apply to the OC. For a CA, this would NEVER be correct.
They are BSing you by saying the CRAs require a charged off debt to be reporting as an open account. I would ask them for documentation from the CRAs that says that becuase such documentation does not exist. The CRAs want collection accounts to report as collection accounts. I also call BS on their statement that it is the CRA, not the CA, that's reporting it as 120 days past due. The CRAs generally report what the furnisher of information tells them.
I would have a two-pronged plan of attack, depending on what your paper trail is at this point.
Subject to other veterans' advice (because I'd love to know their thoughts) I would dispute again with the CRAs, being very clear in your correspondence that the CA is saying that it is the CRA saying it's 120 days past due. If that doesn't get the CRAs to delete, I would do a 623 dispute.
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That is open for debate. Re-read the legal deffinition again.
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That is open for debate. Re-read the legal deffinition again.
Well fortunately for me that argument worked with the BBB for LVNV and Asset Acceptance. And that's after receiving a similar response like the one from OP. I guess I just got lucky.
But a charged off debt (bad debt) aren't usually purchased by Factoring Companies
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Thanks everyone!
I'm going to prepare a response today - we'll see how it goes...