I'm considering filing a lawsuit against Experian and Bank of America. I have an account that was opened with Fleet in 1990. It was closed and paid in full when I got a debt consolidation loan on 4/23/1999. For the next 7 years, it should have reported as a paid account with whatever derogatory record it had. Instead, it is to this day being reported by Experian as an unsatisfied charged-off account. I have attempted to dispute this account many times and have gotten Experian to investigate only twice - the second time after much threatening. They say that they verified the debt on the first dispute and that's why they wouldn't reinvestigate. Either Experian didn't really verify the debt, or Bank of America gave them false information. In either case, I've not only had to hassle with them for the last 2 years, my credit has suffered somewhat because of their error. I'm tired of it and thinking of suing even if they do remove it. Any advice?
You are suing under FCRA. Try to prove damages. Denial of credit, higher rates, lower scores. When was it legitimately charged off? It should have become obsolete 7.5 years after that.
It never was charged off - legitimately at least. I can't recall the exact issues with the account, but I know that I had some late pays. The account may have actually been closed, or I may have requested it to be closed. It had my Dad's name on it and I didn't want it besmirching his credit. I got a debt consolidation loan as a 2nd on my house at the time. It was March-April 1999. According to Bank of America, the account was paid in full on April 22, 1999. That means it may have been closed, may have had some late pays, but it was fully satisfied as of that date. At the worst, it should have appeared on my credit through 2006 with a status of late pay, maybe closed, but satisfied. In a subsequent letter from BoA, they state the following: Equifax and TransUnion dropped the account from reporting in June 2006 as they should have. However, they were reporting it as derogatory up until that time as well. That would indicate that the reporting problem started with Bank of America, but Experian has perpetuated the mess in the way they have handled it. In January 2006, I disputed the account knowing in the back of my mind that something wasn't right. When the results came back, Experian had supposedly verified the debt and my FAKO score dropped from a 668 to a 595 immediately. I thought, "Boy, that's what I get for disputing something. Better to let sleeping dogs lie!". I knew that it was supposed to drop off in June, so I didn't mess with it anymore. June came and went and EQ and TU dropped it. I waited a month or two thinking maybe Experian was just behind but it never came off. Finally, I called them and they told me that there was a late payment in March 2003 and that it would continue on my record until 2010. I knew there hadn't been a payment, but I began to think that maybe a creditor had called and we'd somehow acknowledged the debt and re-aged it. All of these are things I've since learned can't happen. Subsequent calls to Experian produced the excuse that it wasn't a late payment, but that it was first reported as a Chargeoff in March 2003. I couldn't get anywhere with Experian, so I turned back to BoA. I sent them validation letters with no response. I called with no solutions. Finally I got a number here that put me through to a person that helped me get a number to the recovery department. When I called them, I found out that it had been satisfied back in 1999. A little more digging helped me figure out that it had been one of the consolidated accounts. Now, I've sent letters to Experian with what information I had and they refused to re-investigate. I sent them another letter threatening to sue. I filed a complaint against Experian and BoA with the FTC. When I got through to the BoA recovery department on May 1, they said they were sending a request for deletion from their reporting department to Experian. After 3 weeks and it still there, I called them back and they said Experian could take up to 90 days to correct it. I asked them to send me a letter describing their status of the account, which they did. I'm tired of spending $5+ at a whack sending EX CMRRR to no avail. They are a perverse organization that is impossible to deal with and I wish I could find a way to put them out of business.
Time for a summons at this point. Even if they delete the account per BOA's directive, does that undo all the frustration?
Not at all! I'm livid over the time I've spent on this just trying to get it removed. We supposedly live in a country where we are innocent until proven guilty. Apparently that's not the case with speeding tickets and credit! I don't even know where to start - I've never sued anyone. Do I just go down to the courthouse and fill something out?
I'm not sure what type of account it was, but a suggestion from my experience with BoA. I had a similar issue with an error, and nothing seemed to work. I finally found the "right person's" phone number, and left a brief message regarding history, and that they had 48 hours to respond before I set the attorney loose on them. They called the next day, and the error was corrected fully within minutes. The key here is getting to the right person, keep being a pain on the phone, and just let them know you are ready to bring suit. Another bit of advice, check with your state's Bar Association, they usually have a referral system for attorneys and specialities. The charge is minimal, and I believe the first consultation is at no charge. A simple letter from an attorney may clear this up without getting into the suit process.
My experience with BofA has been that although they have eventually complied when required, that they have had to be prodded, both by phone and letter. It sounds like you have already gone down that path.
The other aspect re: BoA is that they no longer have a (defined) disputes department or function. This makes it even more difficult, as any rep you speak with really does not want to deal with something that is "not their job"!
That is very foolish of them, particularly if they are in an acquisitions phase, as with their acquisitions of MBNA and Fleet. Sometimes you acquire legal headaches when you purchase other companies, as Citi did when it acquired Associates. Citi has a specific "Compliance Director" at the top Citigroup corporate level. I don't see any comparable position at BofA.
I faxed a letter to Experian around midnight on Tuesday night(5/22). I sent them a copy of the letter BoA had sent me showing the account was paid back in 1999. I told them they had been caught falsely claiming to have "verified" the debt in May 2005 and January 2006 while these letters proved they could have never done that. I told them I would be suing them for all the damages the law would allow, but I may reconsider if they had removed the account within 24 hours. I told them I'd be pulling my report on Thursday morning. I pulled it this morning and it was gone! Should I still sue? It's got to be a difficult process, but it's ridiculous that this item could have continued for so long on my credit. Furthermore, it would have gone until 2010 because they didn't do their job in verifying the debt at my request.
