Posts Tagged ‘Bankrupt Account’
Dealing with Debt Collectors- a HOW TO
Dealing with debt collectors
People often ask how to deal with a debt collector. Here are some simple rules that will help control the situation.
1. Pay your bills if you can. The easiest way to deal with a debt collector is to not need to- that is, pay your bills on time every month. By the way, this also means that your credit score will be as high as it can be in your situation. (there is more to a credit score than payment history, but history is the biggest part).
2. Talk to the lender before you miss payments. If you fall behind on your bills, it is often easier to deal directly with the creditor to help you fix the situation than if the account is turned over for collections, so as soon as you realize you are going to have a problem, contact the lender. Sometimes they will work with you, sometimes they will not.
3. Prioritize your debts. If you have tried dealing with the lender, the next thing to do is prioritize who gets paid first, and who gets paid last. I will talk about why this is the order next week.
a. Food comes first. If you don’t have enough money for food, then no one gets anything. Don’t be ashamed to apply for food stamps (called SNAP) and other government assistance.
b. Your car and home payments come second. This does not include second homes, second cars, etc, but does include the payment on your first and second mortgage on your home. These assets are important, because you need a roof over your head, and a way to get to work.
c. Utilities (lights, water, gas) come third. It is much easier to maintain your ability to have a roof, and a car if there is heat and air conditioning, water, etc.
d. Current bills. Medical bills, credit cards, store cards, etc.
e. Luxury expenses. Vacations, jewelry, etc. If you are paying for these things, you should be paying all of your bills. If you are not paying all of your bills, you should not spend money on luxury expenses.
4. Reduce your expenses. This is much more important for a long term problem than a short term issue. If you are out of work, but going back, conserve your cash, and keep going. If you are at a new, lower paying job, reducing your expenses is much more important. Downsize your house, downgrade the car. You need to look for a less expensive solution.
5. Communicate with the debt collectors. That first call or letter will not be the last if you don’t respond. Request verification of the debt. Start with making sure they are collecting an account that you owe. Dealing with a mistaken identity or ID theft is different from dealing with your own accounts. Verify the amounts they are requesting.
6. Consult a lawyer and maybe a financial planner. You need to know your rights, and how to get out of this mess. Above all, don’t play ostrich. Sticking your head in the sand and saying I can’t see you will not make the problem go away.
If you have been impacted by anything we mentioned here, please make an appointment to see us.
NO FEE IN YOUR FDCPA CASE UNLESS WE RECOVER!!
KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.
YOU MUST BE A VIRGINIA RESIDENT.
If you are not a Virginia Resident, click here to find a lawyer near you.
OUR LEGAL FEES:
The rights afforded to you, as a consumer, under the FCRA and the FDCPA means that a corporation or
party who has violated your rights may ultimately be made to pay for statutory damages, actual damages, and your legal fees. Therefore, if we agree to represent you in any case, you won’t pay any attorney’s fees unless we are successful and we recover on your behalf. We are here to serve and have assisted many consumers TO enforce their legal rights. Let us try and see if we can help you too. That means you pay no fee in your case unless we recover.
Contact us by e-mail or by telephone or fax or US Mail.
You can call us: 804.303.0204
You can fax us: 804.303.0209
You can contact us by US MAIL:
Krumbein Consumer Legal Services, Inc.
5310 Markel Rd.
Suite 102
Richmond, VA 23230
What is the Automatic Stay of Bankruptcy and How Does it Help Me?
What is the Automatic Stay of Bankruptcy and How Does it Help Me?
Filing for bankruptcy – any kind of bankruptcy whatsoever- immediately triggers an injunction against the continuance of any action by any creditor against you or your property; this is called the automatic stay, and it is a critical element of your bankruptcy case. If you file for Chapter 13 bankruptcy, that injunction extends to anyone else who is obligated to repay your debts- co-signers and co-debtors.
The automatic stay gives you protection from your creditors during the bankruptcy case. In order for a creditor to continue to take action against you, that creditor must obtain court approval first.
There are, however, limits on how long the automatic stay lasts. For example:
- If you had a prior bankruptcy case pending in the last year which was dismissed then the automatic stay lasts for only the first
thirty (30) days after your case is filed unless you or your lawyer gets a court order extending the automatic stay; - If you had two or more prior bankruptcy cases pending in the last year which was dismissed then the automatic stay does not take
effect at all unless you or your lawyer gets a court order allowing the automatic stay. - The automatic stay does not apply at all to child support determinations (determining IF you owe child support or if so, how
much). - The automatic stay has no effect on criminal matters at all. Most criminal courts will allow you to pay fines or restitution through your Bankruptcy, but they are not required to do so.
Remember that even debts that are not Discharged from Bankruptcy are prevented from taking actions to collect on the debt while your Bankruptcy is open, so it can be very powerful.
It is also important to remember that the Automatic Stay only applies to debts that you incurred before the date your Bankruptcy was filed. Debts that come after are not affected.
KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.
YOU MUST BE A VIRGINIA RESIDENT.
If you are not a Virginia Resident, click here to find a lawyer near you.
OUR FEES: Our fees are controlled by the local rules and your situation. They may vary from “free” or probono representation to a flat fee to an hourly fee, depending on your situation.
Contact us by e-mail or by telephone or fax or US Mail.
You can call us: 804.303.0204
You can fax us: 804.303.0209
You can contact us by US MAIL:
Krumbein Consumer Legal Services, Inc.
5310 Markel Rd.
Suite 102
Richmond, VA 23230
Forgot to list your Personal Injury Claim in your Bankruptcy?
There is a recent Virginia Supreme Court opinion that says that the ability to bring a lawsuit, “standing”, must be in existence at the time the lawsuit is filed. In Kocher v. Campbell, the plaintiff had been in a car wreck in 2004, filed Bankruptcy in 2005, and not listed the asset of the potential personal injury claim in his Bankruptcy. He eventually voluntarily dismissed the lawsuit, then reopened his Bankruptcy to show the asset of the personal injury claim. Before the trustee abandoned the PI claim (personal injury money is exempt in Virginia pursuant to Virginia code 34-28.1), the plaintiff filed suit again. However, because he still did not have the right to bring the claim (because the trustee had not abandoned the claim) he was not the right party—he did not have “standing”. The Virginia Supreme Court ruled that the lawsuit, when brought by someone who does not have the right to bring a lawsuit- because they are not the right party- the lawsuit is a legal nullity—it does not exist. You can read about the case here.
What is the lesson we should learn from this? That EVERYTHING that you MIGHT have a right to—car accidents proceeds, inheritance, wrongful death proceeds, ANYTHING, must be disclosed to your lawyer when you are filing for Bankruptcy. This plaintiff lost the right to get anything out of that lawsuit because he did not have the right to bring it.
KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.
YOU MUST BE A VIRGINIA RESIDENT.
OUR FEES: Our fees are controlled by the local rules and your situation. They may vary from “free” or probono representation to a flat fee to an hourly fee, depending on your situation.
If you are not a Virginia Resident, click here to find a lawyer near you.
Contact us by e-mail or by telephone or fax or US Mail.
You can call us: 804.303.0204
You can fax us: 804.303.0209
You can contact us by US MAIL:
Krumbein Consumer Legal Services, Inc.
5310 Markel Rd. Suite 102
Richmond, VA 23230
Car Repoed? You may not need Bankruptcy.
Everyone knows that you have to pay for the products that you purchase. Some you pay for with cash (or cash equivalent- checks, debit cards, etc). Some you pay for with credit- credit cards, loans, etc.
The “story” of a cash purchase ends there. You have paid for it, it is yours.
The “story” of a purchase made with credit does not end there. If you don’t pay the lender back, they have the right to repossess the thing you bought. The most common examples are cars and houses. Theoretically, your credit card purchases at Best Buy are in the same category, but not always.
In the case of a car loan, there are specific rules the lender must follow. These rules are governed by Virginia Code’s version of Revised Article 9 of the Uniform Commercial Code, codified at VA Code sections 8.9A-100 through 8.9A-709.
When a car loan is defaulted, they have the right to repossess, but they must give you certain notices. They must tell you that they are going to sell the car, and how long you have to get the car out of “hock”. They must tell you that if the car is sold, that you will be responsible for any short fall (“Deficiency balance”), and that if there is an overage (“Surplus balance”) that you will get that amount back (surpluses are very rare). After they sell the car, they must send you an accounting, and tell you how much the deficiency or surplus balance is.
If they don’t there are 2 consequences. The first is the one that is most important- you are not responsible for any deficiency. The second is that you have the right to sue them for the entire amount of the interest charge, plus 10% of the principal. VA Code 8.9A-625[c]. You are not entitled to attorney fees and costs.
This includes when a car dealer sells a car, and fails to obtain financing. The Virginia Supreme Court recently held Victory Nissan of Chesapeake to that in Cappo Management V, Inc. v. Britt., and awarded damages to Ms. Britt.
This is common in yo-yo sales. If you are the victim of this kind of abuse, you do not need to file for Bankruptcy protection. Let us help turn the tables on the collectors for you.
KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.
YOU MUST BE A VIRGINIA RESIDENT.
OUR FEES: Our fees are controlled by the local rules and your situation. They may vary from “free” or probono representation to a flat fee to an hourly fee, depending on your situation.
If you are not a Virginia Resident, click here to find a lawyer near you.
Contact us by e-mail or by telephone or fax or US Mail.
You can call us: 804.303.0204
You can fax us: 804.303.0209
You can contact us by US MAIL:
Krumbein Consumer Legal Services, Inc.
5310 Markel Rd. Suite 102
Richmond, VA 23230
Who owns your house?
Some people chose to surrender the house after they file for Bankruptcy. Some because they can no longer afford it, some because it was a bad financial decision. However, they have a problem, one that is growing nationwide.
The mortgage company has not foreclosed, and they will not accept a deed in lieu of foreclosure.
You still own the house after your Discharge.
The problem is that you will still incur real estate taxes (if you live in a jurisdiction that taxes real estate), you will still incur and owe home owners association (HOA) dues. You will still be responsible for events that happen on the property, everything from people slipping and falling to county assessments for failing to mow the grass.
http://www.fdcpa.me/mortgage-forclosure-after-flbankruptcy/
Some people move out, even though they are incurring taxes, HOA dues, and other expenses.
Some people beg the mortgage company to take the house.
For example, one of my clients tried to allow the foreclosure before she filed for Bankruptcy. We even called the day before the foreclosure, to make sure the foreclosure was still on. We explained that she was out of the property, and was not intending to keep the house. They called off the foreclosure, because the mortgage company did not want to be on the hook for the real estate property taxes, HOA dues and potential losses.
Remember, the owner of record is responsible for real estate taxes, HOA dues, and any thing that happens on the property.
So we waited to file the Bankruptcy, figuring they would reschedule some time soon. And we waited, and waited. Finally, my client was unable to wait any more, so we filed a Bankruptcy. STILL no foreclosure.
Another client filed Bankruptcy just before the foreclosure. Of course, the foreclosure was stayed. Then, they moved for permission to foreclose. The judge asked some questions about who owned the note. The motion was continued. The Chapter 7 the client filed was Discharged. Still no foreclosure. The case was closed. Still no foreclosure. But this client was a bit wiser. She continued to live in the house, without paying the (now Discharged) mortgage for 2 more years. It was only when they had foreclosed and filed for eviction that my client left.
Why did we advise her to stay that long? Because after the foreclosure sale, the Bank bought the house back, and did not file the deed of foreclosure. She still owned the house, so she paid the HOA dues and taxes, and maintained some insurance. The bank did not want the house, they wanted the money, and if the bank owned the house, they would have to keep the house maintained, keep the real estate taxes and HOA dues paid, and be responsible for the property. So she got to live there for almost free for almost 3 years, and the Bank did not have to pay the real estate taxes, HOA dues or maintain the property.
Our advise is that for most people, they should continue to live in the property until the foreclosure deed is filed with the county, and you can only be assured of that by being evicted. Pay the real estate taxes, pay the HOA dues, keep the water and electricity on, and keep the home owners insurance up to date. Don’t move out until you have to. The taxes, insurance, fees and dues are much less than rent anywhere, so save yourself some money. File the Bankruptcy if that is what you need to do, but don’t move out.
KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.
YOU MUST BE A VIRGINIA RESIDENT.
OUR FEES: Our fees are controlled by the local rules and your situation. They may vary from “free” or probono representation to a flat fee to an hourly fee, depending on your situation.
If you are not a Virginia Resident, click here to find a lawyer near you.
Contact us by e-mail or by telephone or fax or US Mail.
You can call us: 804.303.0204
You can fax us: 804.303.0209
You can contact us by US MAIL:
Krumbein Consumer Legal Services, Inc.
5310 Markel Rd. Suite 102
Richmond, VA 23230
Fixing Credit Report Errors
The Fair Credit Reporting Act is designed to protect consumers from inaccurate or outdated information on credit reports.
CONSUMER REPORTING AGENCY REINVESTIGATIONS and The Fair Credit Reporting Act
All references to code sections are courtesy of the Legal Information Institute at Law.Cornell.edu.
The Fair Credit Reporting Act requires the Credit Reporting Agencies, or Consumer Reporting Agencies to conduct a reinvestigation and the procedures around that reinvestigation.
The section that discusses the requirements for reinvestigation of a disputed item is 15 U.S.C. §1681i.
As usual, we start with the statute. Please note that we will only be reviewing the section on reinvestigations, so the rest of the section will not be reprinted or discussed.
This section requires the consumer credit reporting agencies to have procedures if they are unable to verify information, or if they discover that information is inaccurate.
It requires that the information that they cannot verify be deleted or changed, and that information that is inaccurate be changed or deleted.
An example of unverifiable information is where the furnisher of the information provides information that a person has failed to make certain payments (ie: been late) on a debt, but is unable to provide the records that show that the person has not made those payments.
In this case, the consumer credit reporting agencies must remove the information that the person has failed to make those payments. They have to report that the person is current.
Another example of inaccurate information is an account created by identity theft. Clearly, it is not accurate to report that a person owes money to a certain creditor when that account was opened by someone else. In this case, they must delete the inaccuracy, and remove all reference to this account.
If you have been impacted by anything we mentioned here, you can make an appointment to see us.
NO FEE IN YOUR FCRA CASE UNLESS WE RECOVER!!
KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.
YOU MUST BE A VIRGINIA RESIDENT.
If you are not a Virginia Resident, click here to find a lawyer near you.
OUR LEGAL FEES:
The rights afforded to you, as a consumer, under the FCRA and the FDCPA means that a corporation or party who has violated your rights may ultimately be made to pay for statutory damages, actual damages, and your legal fees. Therefore, if we agree to represent you in any case, you won’t pay any attorney’s fees unless we are successful and we recover on your behalf. We are here to serve and have assisted many consumers TO enforce their legal rights. Let us try and see if we can help you too. That means you pay no fee in your case unless we recover.
Contact us by e-mail or by telephone or fax or US Mail. You can call us: 804.303.0204 You can fax us: 804.303.0209 You can contact us by US MAIL: Krumbein Consumer Legal Services, Inc. 5310 Markel Rd. Suite 102 Richmond, VA 23230
Bankruptcy Required Certifications
Certifications Required By the Bankruptcy Code
Consumer Bankruptcy has certain requirements that a person must undertake, in order to file for Bankruptcy, and to obtain a Discharge.
To be eligible to file for Bankruptcy, you must seek, and obtain Credit Counseling from an entity certified by the office of the US Trustee. You can get a list of certified agencies here. The fee is regulated by statute, and is permitted to be no more than $50.00 per person. Hummingbird Credit Counseling charges $49.00 for an individual or couple, but they do not e-mail the certificate to your lawyer. Cricket Debt Counseling charges $36.00 and e-mails your lawyer when you complete the class, so your lawyer can download the form at their convenience.
In order to obtain a Discharge, you must take a class on Personal Financial Management, or Debtor Education, after you file, but not later than 45 days after your meeting of creditors (normally 30-45 days after your Bankruptcy is filed). Once again, the agencies must be certified by the Office of the US Trustee. You can get a list of certified agencies here. Hummingbird Credit Counseling charges $19.00 per person, but they do not e-mail the certificate to your lawyer. This can get things confused if you do not call your lawyer when you complete the class. Cricket Debt Counseling charges $24.00 and e-mails your lawyer when you complete the class, so your lawyer can download the form at their convenience.
Krumbein Consumer Legal Services, Inc. makes it easy for you. Our fees include the cost of both Credit Counseling and Personal Financial Management through Cricket.
Also, if you have chosen to file a Chapter 13 Bankruptcy, you must certify certain other things, pursuant to 11 U.S.C. §1325. In order for your plan to be confirmed (have the judge approve of your repayment plan), you must certify that
1- you have paid all of the child or spousal support that has come due since the filing of the Bankruptcy
2- You have filed all tax returns necessary for the last 4 years.
A sample certification for this for the Eastern District of Virginia can be found here.
Further, in order to get a discharge, you must certify some different things pursuant to 11 U.S.C. §1328.
1- That you have not obtained a Discharge under another code section within 4 years of the date you filed Bankruptcy or a Discharge in another Chapter 13 Bankruptcy filed within 2 years of filing this case.
2- That you did not have more than a certain amount of equity in your homestead.
3- You have not been charged with certain financial crimes described in 11 USC 522[q][1][A] or been accused of financial abuse described in 11 USC 522[q][1][B]
4- You have paid all of your child and spousal support since the filing of the Bankruptcy.
A sample certification for this for the Eastern District of Virginia can be found here.
Krumbein Consumer Legal Services, Inc does NOT charge extra for the filing of these forms. Additional fees may apply if you have not complied with the requirements as set out in the Bankruptcy Code.
KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.
YOU MUST BE A VIRGINIA RESIDENT.
OUR FEES: Our fees are controlled by the local rules and your situation. They may vary from “free” or probono representation to a flat fee to an hourly fee, depending on your situation.
If you are not a Virginia Resident, click here to find a lawyer near you.
Contact us by e-mail or by telephone or fax or US Mail.
You can call us: 804.303.0204
You can fax us: 804.303.0209
You can contact us by US MAIL:
Krumbein Consumer Legal Services, Inc.
5310 Markel Rd.
Suite 102
Richmond, VA 23230
Lien Stripping in Chapter 13 Bankruptcy
Today the 4th Circuit Court of Appeals entered a very brief opinion that is great news for bankruptcy debtors, holding that junior liens — second mortgages, home equity loans, etc. — can be “stripped off” of a Debtor’s principal residence in a Chapter 13 case when they are wholly unsecured by any equity in the property. While most of the Courts of Appeals (all that have decided the issue) have already said that this is allowed, some lower courts have said it cannot be done, prompting Suntrust Bank to challenge a Debtor’s right to do this in a case arising in Maryland. The Bankruptcy Court allowed it, and it was affirmed by the District Court, but Suntrust appealed to the 4th Circuit Court of Appeals. Today’s ruling inSuntrust v. Millard, No. 09-2266, simply states:
SunTrust appeals the district court’s order affirming the bankruptcy court’s order granting the Debtors’ Motion to Avoid Lien. We have reviewed the record and find no reversible error. Accordingly, we affirm for the reasons stated by the district court. SunTrust Bank v. Millard, No. 8:08-cv-03002-MJG, 08-17964 (D. Md. Nov. 7, 2008 & Sept. 28, 2009).
This should come as a great relief to debtors in the 4th Circuit (Maryland, Virginia, West Virginia, and North and South Carolina) with homes with underwater mortgages. It is now clear that the ability to strip off junior mortgages in Chapter 13 is secure in cases where the value of the property is less than the amount of the first mortgage. The second mortgage is simply treated as unsecured debt in the Chapter 13 case, and upon completion of the plan it is removed from the title. In many cases, the ability to do this allows families to save their homes that would otherwise be unaffordable.
This article is a re-print of an article. Read the original, Here.
KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.
YOU MUST BE A VIRGINIA RESIDENT.
OUR FEES: Our fees are controlled by the local rules and your situation. They may vary from “free” or probono representation to a flat fee to an hourly fee, depending on your situation.
If you are not a Virginia Resident, click here to find a lawyer near you.
Contact us by e-mail or by telephone or fax or US Mail.
You can call us: 804.673.4358
You can fax us: 804.673.4350
You can contact us by US MAIL:
Krumbein Consumer Legal Services, Inc.
1650 Willow Lawn Drive
Suite 300
Richmond, VA 23230
Credit Reporting on unverifiable accounts
The Fair Credit Reporting Act is designed to protect consumers from inaccurate or outdated information on credit reports.
CONSUMER REPORTING AGENCY REINVESTIGATIONS and The Fair Credit Reporting Act
All references to code sections are courtesy of the Legal Information Institute at Law.Cornell.edu.
The Fair Credit Reporting Act requires the Credit Reporting Agencies, or Consumer Reporting Agencies to conduct a reinvestigation and the procedures around that reinvestigation.
The section that discusses the requirements for reinvestigation of a disputed item is 15 U.S.C. §1681i.
As usual, we start with the statute. Please note that we will only be reviewing the section on reinvestigations, so the rest of the section will not be reprinted or discussed.
(5) Treatment of inaccurate or unverifiable information
(A) In general
If, after any reinvestigation under paragraph (1) of any information disputed by a consumer, an item of the information is found to be inaccurate or incomplete or cannot be verified, the consumer reporting agency shall—
(i) promptly delete that item of information from the file of the consumer, or modify that item of information, as appropriate, based on the results of the reinvestigation; and
(ii) promptly notify the furnisher of that information that the information has been modified or deleted from the file of the consumer.
This means that, under the Fair Credit Reporting Act, the consumer credit reporting agency must, after reviewing the credit file and information that you provided in conjunction with your request for reinvestigation, must remove the disputed information, if the information cannot be confirmed.
For example- If you have a credit card or perhaps a line of credit with a bank, and the bank reports that you are late one month. You have proof that you sent payment, and that they cashed your check on or before the due date.
In order to preserve your rights, you must send your dispute to the consumer credit reporting agencies, and provide them with all the information they need to review this account. If the consumer credit reporting agency cannot verify that the information is accurate, they are required to either delete the information or alternatively, to modify the reporting of the tradeline in the credit file to show that you were not late, and notify the furnisher of the information (your creditor) that they have removed or modified the information in your credit file. Under a different provision, they are required to have specific procedures to prevent the inaccurate information from reappearing in your credit file.
If the information is accurate, it is proper for the information to remain, so it is important to remember that just because you dispute, and they deal with your dispute incorrectly, does not mean that you have a right to sue. The Fair Credit Reporting Act is NOT like the Fair Debt Collection Practices Act. They must report inaccurate, or accurate but misleading and incomplete, information in order to have a right to sue at all.
If you have been impacted by anything we mentioned here, you can make an appointment to see us.
NO FEE IN YOUR FCRA CASE UNLESS WE RECOVER!!
KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.
YOU MUST BE A VIRGINIA RESIDENT.
If you are not a Virginia Resident, click here to find a lawyer near you.
YOUR LEGAL FEES:
The rights afforded to you, as a consumer, under the FCRA and the FDCPA means that a corporation or party who has violated your rights may ultimately be made to pay for statutory damages, actual damages, and your legal fees. Therefore, if we agree to represent you in any case, you won’t pay any attorney’s fees unless we are successful and we recover on your behalf. We are here to serve and have assisted many consumers TO enforce their legal rights. Let us try and see if we can help you too. That means you pay no fee in your case unless we recover.
Contact us by e-mail or by telephone or fax or US Mail.
You can call us: 804.673.4358
You can fax us: 804.673.4350
You can contact us by US MAIL:
Krumbein Consumer Legal Services, Inc.
1650 Willow Lawn Drive
Suite 300
Richmond, VA 23230
What must the Consumer Reporting Agency forward to a furnisher?
KCLS LIMITS THE GEOGRAPHY IN WHICH WE TAKE CASES.
YOU MUST BE A VIRGINIA RESIDENT.
If you are not a Virginia Resident, click here to find a lawyer near you.
The Fair Credit Reporting Act is designed to protect consumers from inaccurate or outdated information on credit reports.
CONSUMER REPORTING AGENCY REINVESTIGATIONS and The Fair Credit Reporting Act
All references to code sections are courtesy of the Legal Information Institute at Law.Cornell.edu.
The Fair Credit Reporting Act requires the Credit Reporting Agencies, or Consumer Reporting Agencies to conduct a reinvestigation and the procedures around that reinvestigation.
The section that discusses the requirements for reinvestigation of a disputed item is 15 U.S.C. §1681i.
As usual, we start with the statute. Please note that we will only be reviewing the section on reinvestigations, so the rest of the section will not be reprinted or discussed.
(2) Prompt notice of dispute to furnisher of information
(A) In general
Before the expiration of the 5-business-day period beginning on the date on which a consumer reporting agency receives notice of a dispute from any consumer or a reseller in accordance with paragraph (1), the agency shall provide notification of the dispute to any person who provided any item of information in dispute, at the address and in the manner established with the person. The notice shall include all relevant information regarding the dispute that the agency has received from the consumer or reseller.
(B) Provision of other information
The consumer reporting agency shall promptly provide to the person who provided the information in dispute all relevant information regarding the dispute that is received by the agency from the consumer or the reseller after the period referred to in subparagraph (A) and before the end of the period referred to in paragraph (1)(A).
What does this mean for you?
That the consumer [credit] reporting agency must forward the information that you provide to them on to the furnisher. It is not enough for them to take your dispute, and communicate the substance, but they must actually forward all the relevant information.
For example, if you dispute that an item (tradeline) on your credit file (credit report) is yours, they should send a copy of your dispute to the furnisher, so that the furnisher can compare signatures. The key to an account that is identity theft account is that someone else took your name, and social security number, and signed their signature. Their signature will not be the same as yours. If the furnisher has a copy of the signature they can look and compare, but if the consumer (credit) reporting agency does not send them a copy, they cannot compare.
Our advice is to send a separate dispute letter to the furnisher of the information, because the nature of the dispute is not always easy to distill into a dispute form. If you let the furnisher know, AS WELL AS THE CONSUMER REPORTING AGENCY, then there is an ability to actually review documents.
Note that there is no private right of action to sue a furnisher for not investigating when you directly dispute, but, it is an additional source of information that they should consider. See, eg: Alabran v. Capital One, E.D. VA, 3:04-cv-935, 12/8/05 (document 87).
If you have been impacted by anything we mentioned here, you can make an appointment to see us.
NO FEE IN YOUR FCRA CASE UNLESS WE RECOVER!!
OUR LEGAL FEES:
The rights afforded to you, as a consumer, under the FCRA and the FDCPA means that a corporation or party who has violated your rights may ultimately be made to pay for statutory damages, actual damages, and your legal fees. Therefore, if we agree to represent you in any case, you won’t pay any attorney’s fees unless we are successful and we recover on your behalf. We are here to serve and have assisted many consumers TO enforce their legal rights. Let us try and see if we can help you too. That means you pay no fee in your case unless we recover.
Contact us by e-mail or by telephone or fax or US Mail.
You can call us: 804.673.4358
You can fax us: 804.673.4350
You can contact us by US MAIL:
Krumbein Consumer Legal Services, Inc.
1650 Willow Lawn Drive
Suite 300
Richmond, VA 23230