I had a MBNA Mastercard in college 12 years ago that went to collections and is no longer showing on my credit report. I guess the MBNA accounts are now Bank of America/FIA accounts. I noticed that a scheduled $200payment that I had made to a newer MBNA Visa card was deducted from my bank account but was not showing on my bill. So I called and the CS rep told me it had been incorrectly applied to the closed account. He reversed the payment and credited it to my new account, but now I am worried that this activity will cause the MBNA/BOA Mastercard to reage and show on my credit report. Does anyone have any idea if this will cause a problem or not? I'm getting sick to my stomach just thinking about it because I am finally getting things back in shape. Thanks for any help or advice you can give.
According to FCRA, the 7.5 year reporting period is based on the original date of delinquency, which if that was 12 years ago, should have resulted in negative information associated with that account falling off your reports over 4 years ago. The payment of an old delinquent account does not change its original date of delinquency, so it would not be legal to start reporting it again just because of that payment, whether reversed or not. You specified in your payment instructions what account to pay (your current account), they made an error, and they corrected it, which was what they should do. They were obligated to apply your payment as you directed. What might be more of a potential problem would be if this account were sold off, and the records now indicate a recent payment that some CA assumes as resetting the SOL. You will want to keep your records (statements showing error, and it's correction) probably until SOL period has elapsed from now, as proof that YOU did not take an action to reset SOL, should some CA sue, so that you can raise a defense of past SOL.
This account was sold off, and now I am getting letters from Asset Acceptance regarding this account (have been for a few years). I haven't done anything with them and they haven't really bothered me. I think I only owe $400 or so, and I wouldn't be opposed to just paying it, but I am mostly concerned with the damage it may do to my credit score. I don't have any statements showing the error because I don't get a statement for the closed card, but I will save the statements for my current card showing the credit. I am hesitant to pursue this any further in case I do stir something up. Thanks for the info...
If they reversed the payment and sent it back to your checking account, then for all purposes no payment was made. No payment, no activity, no problem?
They credited the payment to my actual account, not back to my checking. But hopefully that won't make any difference...
Watch this one! Gear up jill249, you're in for a ride. This happened to me, and others on this forum. You can gain a lot of information by searching under my responses and seeing the thread for another members posts. To put you at ease, if the account is 12 years old, they cannot report it on your credit reports. But, be careful, because your "payment" got forwarded to the Collection Agency. This is happening with a lot of old accounts that BoA now owns (through merger with MBNA). You will need to stay on BoA, and watch the account, it should be showing up on your on-line banking (if you have it).
Did the old account show up on your CR in past years, and if so, did it show as reported or owned by BofA, or by a CA?
It did show up in on past reports when I got my mortgage 4 years ago, but it dropped off shortly thereafter. It first showed up as owned by MBNA and then by the CA. I hadn't even thought about it in a few years...ugh.
Review this thread http://consumers.creditnet.com/Disc...-america-credit-card-deceptive-act-65893.html jill249, read through this thread, it may help. Your issue here is whether you owed any balance on the old account. As the payment will go to the collection agency, they are automatically forwarded by BoA.
Thank you for all of the advice. That link to the post is very helpful...I will go through the post and attempt to get the situation rectified today.
Just be aware that it will take more than a day to rectify, even BoA reps are unsure of how to deal with these errors.
I spoke with a couple of people yesterday and all assured me that my money would be credited to the correct account. I checked this morning and I there is a $200 credit on my active BoA Visa. It seems like it was too easy. Is there something else that I should do?
Yes, stay on top of monitoring the account, my prediction is that the "old" account will now show up with a "balance due" for the amount of your payment credit. And, this will not be the end of it........ Because, I'm now in my second "round" with BoA, the same thing hapened all over again!
