Originally posted by keepmine Financial institutions that don't comply can be forced to restate their financials, they can be fined and, in extreme cases, the FDIC will just take over and liquidate the business i.e., Nextcard.
I have a link to the complete FDIC rules for charge-offs and re-aging for original creditors posted on my website.
The reason I ask is because often newbies are under the misguided impression that charges off status or rules will benefit them.
They do not. The charge off simply means that the bank can no longer consider the debt to be an asset on their books.
It provides no relief to the debtor, and in fact often accelerates the collection process. The bank still has every right to collect every cent they are owned.
Banks are regulated by many agencies, including the FDIC. These agencies have rules that control how a bank can report an asset. The reason for this is so banks do not hide non-performing assets (delinquent loans). These accounting tricks were the cause of some of the S&L failures in the 80's, and the current Japanese financial problems.
So please, tell us what is up, and you might get better advice from this board.
I'm wondering about something, this part of your first post:
"This is a general chronology of the events.
1. I sent a modified validation letter to the OC in April. They were reporting information that was highly questionable on 2 separate accounts. The balances were zeroed out (included in the CH 13) but the "most owed" was escalating rapidly!"
What makes it wrong to keep increasing the "most owed" ? Outside of the obvious, do you think you will have to show that is incorrect?
And, why I am wondering this is because some seem to commonly think that once you place "included in bk" on a tradeline the rest of it is irrelevant.
Do you even think you have to prove that at all? You've the burden though.
Sorry, I'm thinking with my fingers.
I'm just wondering if the judge would know how it was supposed to be reported to be able to tell why it is not correct now -- and what source would confirm the proper accounting practices?
Does the monthly increasing amount ever owed factor into your ratios and your score? That could go to your damages.
I think you need to show why that accounting is wrong even with the included in BK notation. Surely they will say they are allowed to do it based on something so you would need to be able to the proper accounting.
And, the BK provision to that says the charges and interest stop -- does it stop with filing though or with the discharge?
Surely some of the bankers would know where to find that.
I'm thinking the FDIC rules and regulations but I can't check there until tomorrow afternoon.