accounts question

[DYLAN150]

I just checked my credit report and all of my original debts are still listed with the original creditors. When a Junk Debt Buyer buys these accounts should they be listed under the Junk Debt buyers name?

[df04527]

The original creditor is allowed to continue to report. When the collector adds their entry that is also legal as long as the original creditor shows a zero balance. Lovely I know.

[DesdemonaB]

Dylan

Keep in mind CRs do not just make money off me and you via their credit monitoring services, they charge creditors to post information on their reports; while a major creditor like Citibank is going to get a massive discount due to volume alone; a JDB will not.

I listed over 32+ accounts on my BK matrix I only had one JDB listed on my CRs - its all about the bottom dollar, gross margin on a deal they don't want to bring down their "profit" by paying for reporting services.

Just my 2 cents.

[DYLAN150]

DesdemonaB: Here's a question for you. When you file Bankruptcy, how does the JDB get notified of the bankruptcy? ( They own the debt. )

[DSPatch]

They get notified if you include them in your list of creditors.

When I filled out the list of creditors I spent quite a few hours scouring the internet looking for addresses of various JDB's, they seem to change their address frequently and the most reliable sources I found for tracking them down were websites like this forum, several on credit management and a few consumer watchdog sites like WhoCallsMe, Bud Hibbs, etc. In short - the ones that are real people, just folks like you and I who are not trying to sell anything, just help each other deal with life.

I included JDB's who I knew had already sold the debt to other JDB's because I know they swap back and forth, sell and re-sell old debts and I wanted to be sure to get them all. When you trap rats you do not just catch one and call it good. You keep trapping until they are all gone!

So far only two have been kicked back by the Bankruptcy Noticing Center as invalid addresses - Mann Bracken, who are now out of business and Jefferson Capitol, who are so far at the bottom of the pond you need scuba to find them, apparently. I suspect they do this on purpose to avoid getting BK notices, but that is just my theory. The original creditor who sold to them is listed so I am not too concerned.

Many will not show up on your report until they exhaust other tactics, since reporting costs them. But rest assured they will eventually. Stamp them all out now and be done with them.

Good luck,
Patches

[DesdemonaB]

Dylan

You must include them on your creditor's mailing matrix - start with OC and work you way down. I kept the most recent (closest to my filing date) letter and/or statement from the OC or Jdb and grabbed the addresses from there. Anything I couldn't find I first tried bbb.org (better business bureau) if they weren't listed there then I googled till i found something. Oh and read the back of the statements of the OCs they might have a specific BK address - or even the websites.

Good Luck

[GoingDown]

The original creditor is allowed to continue to report. When the collector adds their entry that is also legal as long as the original creditor shows a zero balance. Lovely I know.

In my experience, the original creditor will stay on your credit report as long as you don't dispute it with the CRAs. But they will stop updating it. And that's what lets the CRAs remove it from your credit report, because the original creditor will stop updating it and verifying it. Their last update will say something about the account being transferred or sold.

The JDB will have its name on your report, and it will have a short sentence which says who the account was purchased from. They will keep updating it every month with a higher and higher balance as they continue to charge interest on the debt. They will often be improperly listed as a "factoring company" and they will improperly list your account as "open" and the full amount as "past due" etc.

A word of advice... you want to get a paper copy of your credit reports, especially Equifax BEFORE AND AFTER the debt has been sold to a junk debt buyer. KEEP THEM in a safe place for a long time. The DOLA will change improperly to the date the junk debt buyer bought your debt. And it will also tell you how much the junk debt buyer paid for your debt as it will be listed as the amount of YOUR last payment on that account, eventhough you haven't made a payment in months or years.

[bcohen]

In my experience, the OC's have deleted any mention or history of my accounts from my credit reports once the debts have been sold. All that remains is the JDB's account, which shows the same account number, but lists the JDB as the creditor, the account type as "factoring company account", and the DOLA as the date the account was sold. I check my credit reports regularly, and keep printed copies in case I need them for purposes of defending against a lawsuit, etc, however I have not seen any "fake" payments or attempts to change the DOFD. The JDB's seem to update the balance monthly, and update the DOLA when the balance grows.

So far, the debts which I have that are now owned by JDB's are a Citibank credit card (around $20 k), a charged-off cellphone account (around $600), a charged-off overdrawn bank account (around $200), and a hospital bill for around $700. My other debts are still with the OC's. This is after almost 3 years of nonpayment, btw.

[treehugger1]

My experience is quite different. My accounts that were sold to JDB's still report to the credit reporting agencies. However, every OC who sold the debt reports $0 balance. Not all the JDB's report. I am only speaking of the accounts that I know, for fact, were actually sold.

I think I would still report any entity who ever owned the debt on my creditor matrix.

[GoingDown]

In my experience, the OC's have deleted any mention or history of my accounts from my credit reports once the debts have been sold. All that remains is the JDB's account, which shows the same account number, but lists the JDB as the creditor, the account type as "factoring company account", and the DOLA as the date the account was sold. I check my credit reports regularly, and keep printed copies in case I need them for purposes of defending against a lawsuit, etc, however I have not seen any "fake" payments or attempts to change the DOFD. The JDB's seem to update the balance monthly, and update the DOLA when the balance grows.

So far, the debts which I have that are now owned by JDB's are a Citibank credit card (around $20 k), a charged-off cellphone account (around $600), a charged-off overdrawn bank account (around $200), and a hospital bill for around $700. My other debts are still with the OC's. This is after almost 3 years of nonpayment, btw.

No, I didn't say the DOFD changed. It always remains the same. The DOLA changed, but only once-- when the junk debt buyer bought the account, and the "fake" payment was really what they paid for the worthless charged off debt.

The DOLA never changed after that in my experience. The balance continued to grow for the JDB, but the original creditor stopped updating at all, and became stagnant. I was able to get them removed from my credit reports by disputing them with the CRAs. Since the OC no longer owned these accounts, they didn't verify them for the CRA, and so the CRA removed them.

Your other debts which are still with the OC's will probably be issuing 1099-C forms in a year or so, especially if they have fallen silent.

[bcohen]

My other biggest debts--which are still with the OC's--are Discover Card (around $7000) and a hospital bill (around $2500). Both have been silent for a while. Do you think these creditors will "forgive" the debts and send 1099's, or do you think they're going to file a last-minute lawsuit right before the SOL ends? These debts charged off LONG before the SOL was increased, so it's an interesting question whether they will go by the old 3-year SOL, or the new 6-year SOL.

[GoingDown]

My other biggest debts--which are still with the OC's--are Discover Card (around $7000) and a hospital bill (around $2500). Both have been silent for a while. Do you think these creditors will "forgive" the debts and send 1099's, or do you think they're going to file a last-minute lawsuit right before the SOL ends? These debts charged off LONG before the SOL was increased, so it's an interesting question whether they will go by the old 3-year SOL, or the new 6-year SOL.

That is precisely what happened to my HSBC credit card account. They did not sell it to a junk debt buyer, and after trying about 4 different collection agencies in a row against me and with me sending each one a cease and desist letter / judgment proof letter, HSBC fell silent for 3 years. I didn't hear a peep out of them or any of their collection agencies for that entire period of time. Then the next January after that I received a 1099-C in the mail from them.

This is just a guess on my part, but I think that they won't even try a lawsuit against you, because they might know that the old 3 year SOL applies to accounts which were SOL before the law changed to a 6 year SOL. I actually saw it spelled out in the law, that the old SOL applies to accounts which were SOL before the law changed.

[bellessima]

When did the law change in AZ?

Anyone know the name of the bank in Delaware?

[GoingDown]

When did the law change in AZ?

Anyone know the name of the bank in Delaware?

Last year.


Arizona Revised Statutes - Title 12 Courts and Civil Proceedings - Section 12-505 Effect of statute changing limitation

12-505. Effect of statute changing limitation

A. An action barred by pre-existing law is not revived by amendment of such law enlarging the time in which such action may be commenced.

B. If an action is not barred by pre-existing law, the time fixed in an amendment of such law shall govern the limitation of the action.

C. If an amendment of pre-existing law shortens the time of limitation fixed in the pre-existing law so that an action under pre-existing law would be barred when the amendment takes effect, such action may be brought within one year from the time the new law takes effect, and not afterward.