Author Topic: Just what is "Credit Poisoning" and why should we care?  (Read 680 times)

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Flyingifr

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Just what is "Credit Poisoning" and why should we care?
« on: January 15, 2017 05:19:30 PM »
I posted this in the CA/JDB board also because they are most likely to engage in this practice, but it belongs here also, so let's discuss it in both boards.

There are too few posts here on DB and on the internet itself that deal with the concept of "Credit Poisoning" - the act of a collector/CA/JDB of doing anything and everything they can to make a debtor's CRA and credit score as depressed as possible. I have a JDB on mine who is doing just that. If the initials "MCM" mean anything to you, you will know what and whom I mean. Just what is "credit poisoning"? Here is my history with that particular TL:

It's called "Credit Poisoning" - Date of last payment May 2010, reported 30 days June 2010, 60 days July 2010, 90 days August 2010, 120 days September 2010, 150 days October 2010. No payments in 6 months, report as charge off November 2010, sell to a Junk Debt Buyer December 2010 who reports it as a Charge Off every month from January 2011 to January 2017. For 72 months they report it as a Charge off, and in month 72 my credit score takes a 60 point hit. Like I'm about to pay them after 7 years of not paying them, but if they just report it one more time I just may send them a check for $95,000 to get them to stop.

If that is not the definition of "poisoning" I don't know what is.

On the Internet there has been very little discussion of Poisoning - in fact a search through Yahoo shows a sinhle discussion of it (consisting of only one response) in Credit Karma. https://www.creditkarma.com/question/credit-report-poisoning. Google shows the same results.


I bring this up because the new Credit Score models seem to ignore the old wisdom of derogatory TL's more than 2 years old having less and less effect on credit score. The new models ding you just as hard in month 84 (the end of the 7 year FCRA reporting SOL) as they do in month 1 - and you only get out of that ding with full payment. That would explain why I got dinged 60 points this month on both EFX and TU while the above TL has been there for almost 7 years - nothing new went into my Credit file - just a new (and more debtor-hostile) method of analyzing the data has happened. The old wisdom of derogatory TLs having less and less impact with age is now out the window.

I brought this topic up for discussion on FICO's message boards, and the common wisdom there seems to support this hypothesis. http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Is-my-credit-file-being-deleiberately-poisoned/m-p/4838664#M516517. Pay particular attention to Message 7 in the MyFICO thread. This seems to be happening on Vantage 3.0 and FICO 8. In the other scores that I watch, where they use different models and versions, nothing has happened to my scores.
« Last Edit: January 15, 2017 06:02:27 PM by Flyingifr »
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MyBad

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Re: Just what is "Credit Poisoning" and why should we care?
« Reply #1 on: March 14, 2017 07:40:35 PM »

This appears to be a growing trend. I've had several instances that where this appears to be the case.
Appreciate your comment/feedback.


Chicago based debt buyer

Show status as "in collection", on a debt they just purchased.

List 'Collection Account" on each and every month.

List Collection Account" in the Comments and Remarks

List "Past Due" in comments and remarks, with the full amount shown.

List the terms as "one month".-

Q: As the JDB purchased a delinquent/defaulted account. Isn't "in collection" incorrect.
Any FCRA violations here?



Law Firm WI (Account Review Inquires section of credit report)

Pulled my credit seven time in a 12 day period.

Yet have never received a letter or call from them, no idea who they are or represent.

Q:  While may have a permissible purpose I was not given the chance to validate.

Seven pulls in twelve days, seems like an unfair, unconscionable means to collect a debt to me.

FDCPA violation?


Hardware Credit Card

Charged Off in May 16, report the CO every month since.

Despite being Charged Off the past due amount continues to INCREASE every month,

Q: The amount was charged off how could it past due amount grow, on an account that was charged off?  FCRA violation?

They also list Max delinquency of 120 days in 02/16 and in 04/16 in comments.

In history show 120 day, every month for three months, Feb, Mar, April.

Q: This appears to be deliberate, adding the Max twice on two different months, appears deliberate in the comments.

The history should read 120, 150 and 180 before the charge off.  Disputing accuracy, appear to be doubling down on negatives

for greatest score impact to you??


Thanks for feedback...comments..





Bruno the JDB Killer

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Re: Just what is "Credit Poisoning" and why should we care?
« Reply #2 on: March 15, 2017 01:19:56 PM »
I was not given the chance to validate.

They don't have to send you a dunning letter or validation unless you ask for it. If you didn't ask for DV, they can continue to report.


Seven pulls in twelve days, seems like an unfair, unconscionable means to collect a debt to me.



It is a permissible purpose. It is a bit odd that they would do it so many times, they'll probably get away with it unless it lowered your score. Most of this is going to fall under the FCRA anyway, if you can't prove they violated it, then most likely it won't constitute an FDCPA violation. And you have the fact that you didn't ask for validation, so it looks weak. Try a consumer attorney.



As the JDB purchased a delinquent/defaulted account. Isn't "in collection" incorrect.

No. If they own it, technically it is in collection.


I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

 

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