Consumer complaint received 2017-03-10
Company: Select Financial Services, Inc.
State: GA
Product: Debt collection
Sub-product: Mortgage
Issue: False statements or representation
Sub-issue: Attempted to collect wrong amount

Complaint:
This complaint is not a duplicate of any previously filed complaint. It is representative of new violations that have recently occurred. This complaint is filed because XXXX XXXX XXXX XXXX ( hereafter XXXX XXXX ), as of XX/XX/2017 has violated Section 623 ( 5 ) ( A ) and Section 605 ( c ) ( 1 ) of Fair Credit Reporting Act. WHEREFORE, XXXX and XXXX XXXX is asking for a cease and desist order compelling XXXX XXXX, XXXX, XXXX, and XXXX to correct the record. Any debt that may have existed is now and forever time barred. 
1. XXXX XXXX XXXX XXXX, has, ( a ) Re-aged account No. XXXX, previously reported as Acc. No. XXXX, and, ( b ) reported information beyond the 7.5 year statutory period allowed by FCRA, and, ( c ) Failure to report the account as " DISPUTED '' as required by FCRA. 
2. Both the original creditor or a debt collector can not re-age a negative account. No matter how many times a delinquent account is transferred or sold from one debt collector to another, the date of first delinquency should not change. The DOFD ( date of first delinquency ) determines how long a negative account can remain on your credit reports. ( see exhibit-A, -B, -C ) 3. A negative credit item, such as a charge-off can remain on our credit report for 7 years from the date of first delinquency. Any collection agency that may end up with the charged-off account must comply with that same date. 
4. Section 623 ( 5 ) ( A ) says : " In general. A person who furnishes information to a consumer reporting agency regarding a delinquent account being placed for collection, charged to profit or loss, or subjected to any similar action shall, not later than 90 days after furnishing the information, notify the agency of the date of delinquency on the account, which shall be the month and year of the commencement of the delinquency on the account that immediately preceded the action. '' 5. This means that if a debt collector reports a date of first delinquency to the credit bureaus and the original creditor previously reported it, the dates must be the same date of first delinquency. Any different date constitutes illegal re-aging. 
6. A debt collector re-aging an account can cause serious damage to our credit files. Re-aging would allow the collection account to remain on our credit reports in-perpetuity. This action has been taken because we, XXXX XXXX and XXXX XXXX XXXX believe we are victims of re-aging. 
7. Furthermore, Once an account has been charged off, the date of first delinquency should never change because it starts the clock on the 7-year reporting time period. 
8. In actuality the 7-year reporting period is really 7 years plus 180 days ( 7.5 years ). This is how long a negative item such as a charge-off can remain on a credit report. 
9. A charge-off past the 7.5 year reporting date should not be on our credit reports. This includes any collection account connected to that charge-off account. 
10. Even if XXXX XXXX collection effort began yesterday, XXXX XXXX can attempt to collect the debt if there any, but they are prohibited from reporting the debt past the 7.5 year reporting period. 
11. Furthermore, the account has been disputed. However, the current credit reports for me and my spouse, XXXX XXXX XXXX does not reflect the dispute.

Company response to consumer: Untimely response