I have a friend who went into credit consolidation. It didn't go well. They ended up sending a payment proposal to the wrong creditor (with whom my friend had a good history). That creditor freaked out and cancelled his account. After much discussion, the creditor would only reopen the account at a higher interest rate (24%+). So that card died. My friend learned that this credit consolidation firm was paying the wrong credit cards (so in effect, my friend was paying twice to the same "good" cards). This was mid last year, and my friend managed to straighten it out (although he was not happy about losing his good credit card). Recently, at my urging, my friend finally got his credit report. It was mid to low 500's. He was flabbergasted. It turns out that 2 or 3 of the accounts that he was making regular payment to via the credit consolidation firm, which had gone to the wrong creditors in the beginning, resulted in 30, 60, 90, (maybe 120?) lates on these accounts. As you could guess, my friend is out for blood, but isn't sure what his legal options are. Can he sue for damages? He has the paperwork which proves the lates are the result of the credit consolidation firm's screw-up. My fear was that since he wasn't trying to get a house or car or anything like that, a low credit score, by itself, wouldn't be considered damages under the law. There is no tangible wrong that could be proven. I suggested he has nothing to lose if he simply humbly begs with the creditors, showing them that he was paying in good faith and that the consolidation firm screwed him...and maybe they might take pity and remove the negatives (wishful, utopian thinking to be sure). But I can't think of any other option. Does my friend have a legitimate case for litigation? Do you think begging and pleading with the creditors may work? Is he totally screwed? Any other ideas? FYI, we're in NYC. Cheers, Keirmeister
In my opinion I would start by disputing these accts directly with all of the CRA first and see what happens, then write a letter to the crappy loan place and ask them for proof of their activities, how they managed his accts, hopefully they still have the records, but dont mention his current situation just yet. see where this gets you, if after the CRA investigation the accts are still showing these adverse payments write a letter to each creditor and request copies of statements or something showing why they are reporting this way.if the statements show now lates the creditor need to update the reporting and correct the mistake, if its not a mistake then pursue a lawsuit. also in regards to his good lost CC. i think thats illegal for the CC company to close his acct and offer to reopen on different terms under the EOCA.
<< That's illegal for the CC company to close his acct. and offer to reopen on different terms under the EOCA. fun4u2 >> ==================== Agrees on the left Disagrees on the right. ><- <>- ><- <> ~~~ ><- <>- ><- <> ><- <>- ><- <> ~~~ ><- <>- ><- <>
