I think somebody just violated the automatic stay...

[IBroke]

Hmm, I just checked my FICO score-watch and got a message that my score dropped. Here's why:

1 new account was added to your credit report:

ASSET ACCEPTANCE CORP. (XXXXXXXXXXXXXXXXXX)
Opened: 7/2010


Balance: $23,377
Credit limit or largest balance: Not Reported
Past due: $23,377
Payment terms: Not Reported
Status: Included in bankruptcy
First reported: 10/1/2010
Portfolio type: Not Reported
Description: Bankruptcy Chapter 7

I highlighted the "interesting" parts in red. So they already know it's IIB BUT they still decided to report its balance AND report it as past due. I also believe they are not reporting in the correct "form" since they are a collection agency. There shouldn't be a "past due"-field in the first place. Then, they use an incorrect "first reported" date - the account showed up today and NOT in October. As you can see, I already filed in September - so to me, this is a violation of the automatic stay. What do you think? Should I release the hounds (my attorney)?

[newbie2]

You're not discharged yet, correct? That may make a difference...zero balances show up post discharge.

[biotechsolution]

Wait until your discharge and send them your discharge papers, not the collection agency but the original creditor.
Your attorney most likely do much for credit reporting errors, this you'll have to do on your own.

[helpmeout]

After my discharge, I checked my credit report and found that my mortgage holder was still listing a balance and reporting missed payments after May all the while stating that it was IIB (the month I was discharged in) with Transunion (they may have been for the other two, but the other two recognized what IIB meant). I disputed it with Transunion and it was fixed. It didn't raise my score much, but at least it wsn't dinging it anymore.

[Bell30656]

They are reporting exactly as they should be reporting. Everything in their reporting is true and correct. You are indeed past due and it is included in bankruptcy. Once you are discharged the past due amount will change to zero and so will the balance. The automatic stay prevents collection action it does not prevent reporting.

This same company appeared on my report during my bankruptcy then changed to zero after bankruptcy. On the positive side after the bankruptcy was over I challenged all four of their collection accounts with the credit reporting bureaus and they didn't respond causing the entry to disappear completely.

[IBroke]

They are reporting exactly as they should be reporting. Everything in their reporting is true and correct.

I disagree on that one. They are a collection-agency but report as a credit-account. An account reported by a CA shouldn't have both, a Balance and past-due amount section. In addition, the "first reported"-date is off by 5 weeks.

I'm aware of the fact that they needn't report $0 yet - however, they are the only account reporting IIB and a balance the same time. But that's actually not what bothers me. I have an issue with the fact that they ADDED this new account to my file during the automatic stay.

[doni49]

I disagree on that one. They are a collection-agency but report as a credit-account. An account reported by a CA shouldn't have both, a Balance and past-due amount section. In addition, the "first reported"-date is off by 5 weeks.

Are you saying that you'd prefer they state in the report that they are a collection agency? As it stands they are just listing it as a credit account as opposed to a collection account.

I'm aware of the fact that they needn't report $0 yet - however, they are the only account reporting IIB and a balance the same time. But that's actually not what bothers me. I have an issue with the fact that they ADDED this new account to my file during the automatic stay.

As was previously stated, they are prohibited from attempting to collect from you--that means they can't call you or send you requests for payment. But they are not prohibited from reporting it.

[IBroke]

Are you saying that you'd prefer they state in the report that they are a collection agency? As it stands they are just listing it as a credit account as opposed to a collection account.

I checked my other credit-reports and on those reports, they report as "credit report" AND describe it in the account describtion as "collection". On Experian, i.e., they report the same account as $0 balance, IIB. Strange, isn't it?

As was previously stated, they are prohibited from attempting to collect from you--that means they can't call you or send you requests for payment. But they are not prohibited from reporting it.

You do know that some courts share the opinion that credit reporting can be considered as attempt to collect a debt?

I find it a bit odd that they never contacted me at all. If they are now responsible for that account and all of a sudden list it on my report POST filing (again, they NEVER reported the account PRE filing), I think I should have been notified by them. I don't think the automatic stay was invented to release CAs from notifying their debtors who they are dealing with.

[IBroke]

They are reporting exactly as they should be reporting. Everything in their reporting is true and correct. You are indeed past due and it is included in bankruptcy. Once you are discharged the past due amount will change to zero and so will the balance. The automatic stay prevents collection action it does not prevent reporting.

I've been thinking about that statement for a while and here's why I believe it's not accurate:

Let's say you have a CC-account and are current. Your next due date would be September 10th but you don't pay. On October 5th, you file for CH7 BK. Now, according to your statement, the CC-company can report you 30 days late on October 10th since you are "indeed 30 days late", "not discharged yet" and the automatic stay "prevents collection action but does not prevent reporting". So according to you, "they are reporting exactly as they should be reporting".

However, we all know that the CC-company is not allowed to report you late POST filing - no matter if you are actually late or not. It doesn't even matter if you have already been discharged yet.

So please explain to me why the case I just described would be considered a violation of the automatic stay BUT the addition of a BRAND NEW collection-account on a debt IIB POST filing is perfectly legal? See, the issue I'm having with this account is actually not what they are reporting - it is the fact THAT they started reporting POST filing.

[df04527]

Is the OC reporting also? Just curious really. What your referencing regarding the CC company and the example you gave - I read to be the original creditor. I'm pretty sure your aware that Asset Acceptance is a collection agency. The fact they are reporting IIB with a past due amount is wrong and I would dispute it -- OR because your not discharged yet -- I would wait until your discharged and dispute this one and the others that will, more than likely, be wrong too.

Credit bureaus, creditors, collectors SUCK at reporting IIB. This one would be #1 on my list to handle when your discharged. Doing it now, to me, is a grey area because these collectors are banking on you getting dismissed for some reason. Just keep track of the arses and get them all when your done.

[Bell30656]

IBroke, pretty simple answer... They aren't trying to collect from you. They are accurately reporting that you owe money and that the debt is currently included in bankruptcy. How do you want them to report it? What usually happens with these is that a new debt collection agency shows up on your report with a balance owed and XX days behind because the new debt collection agency has no clue that you are in bankruptcy. Once you bankruptcy is discharged wait about 30 days, pull your report and challenge anything on it you do not feel is accurate. Keep in mind that this will most likely change to a zero balance, included in bankruptcy. Which will be accurate. Your complaint that the amount is wrong will be irrelevant since the amount will be gone.

Basically, the OC got screwed out of their money. If the collection agency is a JDB, they got screwed out of their money. Hence is the way bankruptcy works. I'm not judging, I've been there and done that. Just think about it. If you were on the other side of this how would you handle it?

[IBroke]

When it comes to automatic stay and credit-reporting, I don't think it makes a difference if it's the OC or the CA. Why should a CA be allowed to report derogatory information and the OC not?

Yes, they are a CA for an old Cap One CC and they report as well. Capital One is the creditor on my schedule since I wasn't aware of the CA when I filed. I disputed the account with Experian online and I'm curious what their response will be. I didn't mention a specific error - a requested a general validation of the reported account.

The standard procedure of accounts during BK is clear. They add "IIB" and some of them report $0 balance right away while others are waiting for the discharge to do so. Nothing wrong with that. However, I do believe that the addition of a new CA-account stating a "past-due amount" does violate the automatic stay.

[IBroke]

IBroke, pretty simple answer... They aren't trying to collect from you. They are accurately reporting that you owe money and that the debt is currently included in bankruptcy. How do you want them to report it? What usually happens with these is that a new debt collection agency shows up on your report with a balance owed and XX days behind because the new debt collection agency has no clue that you are in bankruptcy. Once you bankruptcy is discharged wait about 30 days, pull your report and challenge anything on it you do not feel is accurate. Keep in mind that this will most likely change to a zero balance, included in bankruptcy. Which will be accurate. Your complaint that the amount is wrong will be irrelevant since the amount will be gone.

Basically, the OC got screwed out of their money. If the collection agency is a JDB, they got screwed out of their money. Hence is the way bankruptcy works. I'm not judging, I've been there and done that. Just think about it. If you were on the other side of this how would you handle it?

So why is the CC-company not allowed to report a 30-day late after filing when you are indeed 30 days late?

[IBroke]

How do you want them to report it?

That's easy as well. The automatic stay prohibits further derogatory reporting of accounts IIB, so if the CA didn't report PRE filing, they are not allowed to report POST filing.

[IBroke]

What usually happens with these is that a new debt collection agency shows up on your report with a balance owed and XX days behind ...

That would be another issue because CAs are not supposed to report "XX days behind" because you can't have a payment-history on a CA-account. You can't be "current" on a CA-account either. You either owe the amount or you have paid it. There is no such thing as "60 days late in August, 90 days late in September, current in October and 30 days late in November" on a CA-account. Many CAs are reporting as such but that is a violation of the FCRA.