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Do I have a case?

Date: Thu, 08/02/2007 - 14:55

Submitted by anonymous
on Thu, 08/02/2007 - 14:55

Posts: 202330 Credits: [Donate]

Total Replies: 4


After trying to recover from divorse, juggle the mortgage, and pay varoius credit card companies, I finally resorted to Chapter 7 bankruptcy in 2005. At the time Wolpoff & Abramson had my account and was trying to collect. My lawyer notified them of the bankruptcy. They odviously did not report this to my origional creditor, Wells Fargo Financial, because WFF is still reporting to the credit bureaus that my accout is 120 days past due/sold to another lender/seroiusly delinquent/charged off ect. After repeated calls to W&A, and repeated deniels of my account ever even existing, I finally called just the right 800 number and just happened to talk to someone who informed me that W&A sold my account info to Palisades Collections/Asta Funding. Upon contacting Palisdas/Asta, I was infromed that they can not, will not, contact the origianal creditors. Infact PC/AF informs me that my original creditor should not be reporting to the credit bureaus at all, since the sold the account. My research shows that they have reported to the credit as early as 11/2006. I have been encourage to send a copy of the bankruptcy to the 3 credit bureaus to clear this up. I will do this, but I'nm not sure ti will do any good, because Walpoff & Abramson is listed as the creditor/not Wells Fagro Financial. My request directly to WFF to update my credit file to reflect more accurate information , ( included/discharged in bankruptcy), has fell upon deft ears. They did suggest that I file a dispute with the credit bureaus, which I already have done, and WFF has already denied. They have also reluctlantly suggested I fax WFF credit dispute dept. i am reluctant to do so, because upon calling WFF credit dispute, I was told they had no record of my account. i odviously feel like I am spinning my wheels. I would appreciate any advise.........


hi joe--

you have several things going on here at once, let me see if I can help clear some of this up for you.

First, if the debt was declared on your bankruptcy, then there is no question that the creditor that owned it at that time would have been made aware of this fact. For them to then turn around and sell it to another CA is fraud, if I am not mistaken.

Ok, when you say that the OC is still reporting on your credit file, are you sure they are still reporting, or is it just an entry that still shows up? There is a difference--an entry for a debt can stay on for 7 years. Look again at your credit reports, and see if the original creditor has ever updated the report, it should say so on there.

Now, about Palisades, they lied to you. They are required to contact the original creditor if you request validation of the debt. That is the only place that proper legal validation of a debt can come from--the original creditor. You need to send them a debt validation letter, send it certified mail return receipt. If you need a copy of a DV letter, look in the 'do it yourself' section over to the right----> and click on the sample letters link. You may also consider informing them yourself about the bankruptcy, because they bought a debt that was illegally sold to them. They cannot collect legally in any way on this one. So, they might be interested in having a little chat with W&A themselves...

Once you send that letter, they are not allowed to try to collect from you until they provide that validation. Let's see them tell you after getting this letter that they cannot contact an original creditor...

As for Wells Fargo, notify them yourself that they are violating the FCRA by continuing to report on your credit bureaus because they no longer own this debt. Inform them that they are to remove this entry in accordace with the Fair Credit Reporting Act or face legal action. By law they are fully responsible for the accuracy of the information they report, and they can be penalized for inaccurate reporting.

OK, now on to the big one---W&A. I would recommend sending them a copy of your BK that shows this debt included, and make sure that what you send them shows their company being made aware back then. Then, ask them why they chose to sell a debt that was on a bankruptcy to another creditor, which is illegal. It would be a good idea at this point to discuss this with an attorney, honestly. It is possibly a good case, and a lawyer will be able to handle it for you, I suspect, fairly easily.


lrhall41

Submitted by skydivr7673 on Thu, 08/02/2007 - 15:41

( Posts: 2036 | Credits: )


You need to contact the lawyer that did your BK. They have copies of everything that was sent out. And if they are a good one then they will take care of this for you at no charge. Mine did, citibank did almost the same thing, by trying to send me to a CA after the BK was discharged. The lawyer sent the CA and citibank a nice little letter and then it was all taken care of. So call him and let him know what is going on and then ask for his help in clearing this up.


lrhall41

Submitted by puddlejmpr on Thu, 08/02/2007 - 21:14

( Posts: 1634 | Credits: )


puddlejumpr is right, but in your case the CA actually sold the debt to another collector rather than just sending it to someone else to collect on their behalf....so I am interested to see how this plays out. They knowingly sold a debt that was no longer a debt, which they had no legal right to sell.


lrhall41

Submitted by skydivr7673 on Thu, 08/02/2007 - 21:36

( Posts: 2036 | Credits: )


The debt may have changed hands during the bankruptcy process or, the CA found out you were filing bankruptcy and quickly re-sold the account. In either case, it doesn't matter. They are playing games with you. Contact your BK attorney and let him/her straighten this out. They can run from a bankruptcy, but they can't hide.


lrhall41

Submitted by on Fri, 08/03/2007 - 11:03

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