CA seeking discharged debt

Discussion in 'Credit Talk' started by ShyGuy, Apr 16, 2001.

  1. ShyGuy

    ShyGuy Well-Known Member

    While I will call my BK attorney about this tomorrow, I'm curious what advice folks here have about the situation.

    Today a received a letter from a collection agency seeking payment on a debt that was discharged a year ago in my Chapter 7. The discharge was in the original creditor's name, and I never heard of the collection agency until I saw it putting inquiries on my report a few months after the discharge.

    The debt was one of about four that wasn't listed as included in BK on my reports, and disputes had caused it to be removed from a couple of them. But the debt was included in the Chapter 7 and discharged.

    Obviously, there is no way for the agency to collect. But how do people here think I should handle it? Should I demand the collection agency remove all of its inquiries? Should I report the CA to the FTC? Any other ideas?
  2. BoldGuy

    BoldGuy Guest

    Demand the collection agency remove all of its inquiries!
  3. Bill Bauer

    Bill Bauer Guest

    Yep! And furthermore ------&gt

    I think you can also report them to the bankruptcy court and if my information is correct, they should be in more hot water than they bargained for.

    I don't know much of anything about bankruptcy, but that's what I have heard.

    Bill Bauer
  4. MikeB

    MikeB Banned

    Re: Yep! And furthermore -----

    Well, if the inquiries are "soft", no big deal. Soft inquiries do not hurt you and are seen only by you. If they are "hard" inquiries that you did not authorize, then you can file a lawsuit on them for violating FCRA. If these are hard, contact your lawyer.
    Send creditor a copy of your BK papers.
    Good Luck,

  5. eddie

    eddie Well-Known Member

    Re: Yep! And furthermore -----

    You should not be subject to any collection actvity on a discharged debt. If they continue your lawyer can file a motion for sanctions in the bankruptcy court. Bankruptcy judges do not take kindly to credtors who ignore stays and/or discharge orders.
  6. Marie

    Marie Well-Known Member

    The solution :)

    I had the same thing happen to me. Best thing that happened since mine was the Original creditor doing it. Jackasses. I settled with full deletion of the account and all inquiries. their mistake helped clean my credit.

    Get anything they've put on your report off. Now. That hurts your score. Guaranteed. Anything collection hurts you more because it's recent.
    Also, if the original listing from the original creditor is still on your reports, make them remove it all. Complete deletion. That's their minimum punishment. After all, they assigned the account to a collection agency post bk 7 discharge.

    On the legal side, it's 2 things. The original creditor and the collection agency have
    1. violated the automatic stay of your bankruptcy
    2. violated the FCRA by adding entries of an account that legally doesn't exist anymore. If the collection agency tries to collect after you notify them, it's also a FDCPA violation big time.

    Now, for what you do:
    My bankruptcy trustee said if they don't resolve immediately the federal bankruptcy court can take action.
    But the best course of action is this:

    Contact the original creditor and get the name of someone very high up. Let them know verbally that they've violated the stay on your bk by pursuing you post bk discharge. This will get attention. After you get a name and address:

    Now, send a letter, certified rr requested. demand they
    cease and desist immediately all collection activity.
    Recall the account from the collection agency
    Make certain all info placed onto the credit reports is completely removed. all. their entry too.
    Make certain all inquiries after your bk7 was filed are removed completely from the original creditor and from the collection agency.

    Give them a week or so deadline.

    Also, call and then send the collection agency a notice (also certified etc) saying that by attempting to collect the debt they are violating the bk7 stay and the FDCPA and FCRAs by not only pursuing you but also by putting illegal inquiries and entries on your credit reports. Make sure to quote your bk# filing date and discharge date on all correspondence. they may ask for a copy of your bk. give it to them if you want to. the number and dates should suffice.

    Give them 7 days to cure from receipt of your letter.

    Get ahold of all your reports again and see what's on them.
    If anything is still on them, file small claims suit for FDCPA and FCRA violations. Sue them for the exact amount they're asking you for plus 1,000 per violation. that's 1,000 per report by the way.

    Also, file suit against the original creditor as well. You'll get money out of them too.

    What they'll likely do is what happened to me. Fall over themselves apologizing. A Vice President of Wachovia called their Equifax rep personally and had her remove all info that day. Done and done. Now that's what I call credit rehab :)

    If you want to be ultra certain of a great lawsuit, give them the 30 days to cure. That would also satisfy the FDCPA period for the collection agency.

    If I were you, if it's all not done within 30 days max (from the day they receive the letters) I really would sue. The opposing atty (the one for the bank) told me, had I decided to go to court I would've gotten at least 1,000 for the violation plus a full removal of all info. Wish I had now.

    Pays me back for the higher interest rates I get post bk :)

    This really is a nobrainer. 2 letters will do it. Just make sure to get something out of it for yourself for your trouble. That's why I said to at least make the original creditor also remove all signs of this account. It's only fair if you don't sue them. ACtually, I think the mere fact that they pursued you means you can sue and win... but I'm no atty.

    Have fun. YOu have them completely over the barrel. Show as much compassion as they would show to you if the situation were reversed :)

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