By the end of the month I should have only two derogatory accounts on my credit reports: One from Sears which will remain until 10/03 as "settlement accepted/chargeoff". I have paid it full though, I did not settle. Another one which will be gone 11/02 from a department store for $150 (unpaid). I have been sending validation, nutcase, dispute etc. letters (CRRR) to both of these for the past 6 months! The CRAs keep verifying the information and I have received no responses from the creditors. Since they are original creditors are they required to send any kind of verification to me? Any ideas on how to proceed? Thank you! Mark
they don't have to send you "validation" per se, but an original creditor is certainly liable for misreporting under the fcra. The reporting of "settled" when the account was paid in full is an error in and of itself and a violation of the fcra. You can sue for this alone BUT you'd need someone besides you to see the report... If you have the proof it was paid in full and not settled for less than the amount due, you have them. additionally, if you told Sears the item is in dispute and Sears didn't note your credit reports as being "in dispute" directly with them, then that's also a fcra violation. If the account is paid in full and you have no other credit with Sears, they should not ever pull your credit reports again (not even to update your trade line). If they have pulled your report (in either hard or soft inquiries) then you also have them on fcra 604 Permissible purpose violations. Once a credit relationship is terminated, they can no longer be in you file (no, not even to correct an item and especially if you threaten litigation... not then either) If it's your only derog... or one of only 2...you're in pretty good shape...Go get declined for a credit line increase or for new credit, then you'd have a case against them. You need to apply for something and have damages, as some third party must also see your report for it to be considered a "consumer report" from which you can get fcra violations (see def: consumer report in the fcra). I am certain about this part... so if you want to sue, get real damages then sue them. (ref: Cousin v Tu appeal case). HE lost 4 million in punitive damages because noone other than the consumer had seen the errors... and because there were no "actual damages". So, if suing anyone (Sears or cra), have damages. If you've disputed with the cras and it came back verified, the cras can also be held liable for the misreporting. Falls under several categories: willful noncompliance of fcra, negligent noncompliance frca, if they said they don't accept evidence from a consumer, it's another fcra violation (They must consider all evidence)... you get the idea. they can't just point fingers at each other, or ignore you. they can be held accountable, if you're willing to file a small claims lawsuit against them (or against them both). Lizardking kindly posted his lawsuit and it's good. You can use it and cut and paste in your facts and you're pretty good to go... have fun. You can make a minimum of 1-2k out of this if you're willing to walk into a courtroom.
Thank you for your very informative post. I do have a lot of thinking to do at this point. What happened with Sears is that back in 1996 they filled a suit against me. Not knowing enough at that time I called them and askd what the total balance is. I paid the full balance they requested to their attorney and now it appears as: Experian: Paid in settlement/Account charged off / Account legally paid in full for less than full balance. Equifax: CHARGE-OFF/ SETTLEMENT ACCEPTED ON THIS ACCOUNT/ CLOSED ACCOUNT Thank you! Mark
