Vindictive Creditor

[SleeplessInMI]

What is it with the smaller creditors giving the biggest problems? Seems like the lower the balance the bigger the problems.

Anyways, I have this creditor that has pretty much been off the radar for a while. Ever since I started cleaning up my credit report a month ago they have been on a vindictive rampage reporting my account to all the CRA's. I am guessing that when TransUnion contacted them to verify my account it put me back on the radar with them. But that is not what I am mad about, it's thier right to report the account... however, they are not reporting it as IIB but as "Major Derogatory" instead.

They were only on TransUnion but since I began my campaign it is now on Experian as well... and as "Major Derogatory." They were included in my BK and were notified.

I am a little confused about my TU alerts because they have multiple alerts... some say derogatory and some show IIB. But since they recently reported my account to Experian (first time ever) I have to assume they are purposely trying to make my credit report look as bad as they can and forcing me to keep disputing.

Should I contact TransUnion and Experian and the creditor both or just one or the other?

Here are my alerts for the past week or so, the most recent entries are on top right?
(I am sure Equifax will be next very soon)

TransUnion
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Delinquent Account 03/25/2006 Creditor Charlie
Delinquent Account 03/25/2006 Creditor Charlie
Delinquent Account 03/25/2006 Creditor Charlie
Account Included in Bankruptcy 03/25/2006 Creditor Charlie
Account Included in Bankruptcy 03/25/2006 Creditor Charlie

Experian
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Major Derogatory 04/07/2006 Creditor Charlie

[aa06a47]

Get some sleep sleeplessinMI

Write to the credit bureaus's and dispute the status, and request they change the status to IIB. (Dispute the status...use those words somewher in your letter).

I'm not sure how your defining "little creditors", but it really could be that if it is a mom and pop store, they don't know how to report accuratly. Once you put a dispute in, the cb is required by law to make it accurate.

[SinkingFast]

When we were chatting with the paralegal after she'd gotten our docs, she explained how this is all gonna work. Where the 341 would be held and what to expect.

I asked if it was possible that any of our Creditors would show. Nope. All of ours are major bank CC's. The paralegal said if we'd had a loan with,......... and she rattled off a host of local lenders, she said we'd see them. But we don't have any of those, so we probably won't see any Creditors at the 341.

I read sometime back that the big banks are required by Federal Law to maintain a default reserve on hand. For every so many dollars they have lent out at any one time, the banks have to have $X dollars in cash reserve backing against defaults. That's home loans, auto loans, CC's, everything.

Mom and Pop lenders probably carry default insurance but probably don't have an actual cash reserve backing the total amount of $$$ out in loans at any one time. Maybe why they are harrassing you. This is the only revenge they can get for you having defaulted against them.

And, like Aa said, smaller lenders may not be all together saavy in how to report. Depending the size of the business and how much your line of credit was, they could actually consider it a major default. Your loan could be for them the equivalent of a $25K line of credit on a CC with Citi or Chase.

Dispute the wording directly with the CRA's. Make them investigate. Maybe that will get the wording changed.

As if we don't have enough to deal with going into BK or coming out the other side. Seems there's always a fire to put out.

[aa06a47]

I had a friend file bk about 10 years ago, I was asking him not long ago if anybody showed up at his 341 meeting, he said, only 1, it was sears and they wanted his lawnmower back. He told them to come and get it, he would need help pushing it on there truck because it was broke, but would be glad to give it to them....he said he never heard from them again.