Christine Baker (Admin)
Post Number: 44
|Posted on Monday, August 19, 2002 - 04:05 am: ||
The FTC stated in opinions that the reporting of a derogatory account is a collection effort. Of course it is, because you may not even be able to open a bank account with just one old collection on your credit report. (see Baker vs. Compass Bank)
Fair Isaac LOWERS credit scores not only for the public record of the bankruptcy, but also for each discharged account.
Bankruptcy is supposed to give debtors a FRESH START without continuing collection efforts.
Therefore, the reporting of discharged debts IS a violation of the stay.
Creditors know that there is a chance of payment as long as the debt is reported and continues to negatively impact on the debtors' credit rating. How many people have paid their discharged debts? Few, if any.
That's because until VERY recently nobody knew that those accounts lower your credit scores. As people learn more about Fair Isaac's scoring methods, will debtors consider paying a $100 account INSTEAD of discharging it?
When mortgages were still manually underwritten, the underwriters couldn't care less how many discharged accounts were on a credit report. They considered the BANKRUPTCY, and the REASON for the bankruptcy.
Lowering credit scores with each account is one of the most ridiculous things Fair Isaac does. I have some discharged accounts and that's going to be one of my complaints about Fair Isaac in my hopefully soon to be filed suit.
I will also use this argument to dispute the accounts with the credit bureaus and if they don't delete, add that to my complaints about them.
I'll try to come up with a brief dispute for the bureau disputes, and I'll post some supporting documenation such as screen shots, etc.