Consumer complaint received 2020-07-30
Company: East Coast Funding Group
State: NY
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Old information reappears or never goes away

Complaint:
The auto loan in which I initially obtained was assigned/transferred to East Coast Funding Corp., d/b/a Wisdom Finance. On or about XX/XX/XXXX, I sought personal bankruptcy protection by filing for Chapter XXXX in the XXXX District of New York. 

On or about XX/XX/XXXX, XXXX XXXX, as VP for Wisdom, sent a letter to the parking garage company, where the vehicle was parked, authorizing its release to XXXX XXXX, its XXXX agent. The garage company placed a mechanics lien on the car for my failure to pay garage fees. It was in the process of auctioning the vehicle as a result of its mechanics lien. 

As to its process in doing so, it notified the lien holder, Wisdom, in which caused Wisdom to pay the garage fees and send its agent to recover the vehicle. Additionally, around the same time, my attorney had arranged through Wisdom 's counsel, who appeared in the bankruptcy proceeding, for me to surrender the car. Wisdom was made aware of the location of the vehicle and the garage fees. 

On or about XX/XX/XXXX, or shortly after, Wisdom, through its agent XXXX XXXX officially repossessed the vehicle. Regardless of the car being in Wisdom 's possession or the possession of its agent XXXX XXXX XXXX XXXX, Wisdom erroneously continued reporting to all three bureaus, late payments until XX/XX/XXXX. Such reporting was grossly inaccurate, completely false, and miss leading. The collateral was in the sole possession of creditor/lender, in which the borrower had no access to its usage at that time, and its recovery was for the sole purpose of protecting its lien and exercising its recovery rights under a default. 

For this reason, the furnisher was disallowed after repossession to continue reporting late payments in any manner on my report. 

After noticing this issue, I contacted all three credit bureaus to inquire as to the inaccuracy of the reporting information. Wisdom certified to the bureaus the reporting information was accurate. I provided supporting documentation to show Wisdom 's dishonesty. The bureaus considered the documentation provided, and after further contacting, Wisdom, and Wisdom failing to correct the information, deleted the account for the inaccuracy of the reporting information. 

Since Wisdom was a creditor in the Bankruptcy and filed an initial claim in the case, to collect any deficiency, after deposing of the vehicle, including payment of garage fees, towing cost, etc., it would have needed to amend its creditor claim, which it failed to do. 

Yesterday, I learned Wisdom recently reported to XXXX, " Merchandise was taken back by credit grantor ; there may be a balance due/foreclosure ''. For starters, Wisdom is seeking a fourth bite at the apple. Since it previously had more than three opportunities ( based on my disputes ) to correct the information, it chose not too, and it is only now taking action several months after the bureaus deleted the account. Additionally, reporting a foreclosure is highly inappropriate and miss leading, since a foreclosure does not apply to car loans.

Last, by not least, Wisdom can not report, there may be a balance owed since any such collection is subject to collection from the bankruptcy estate only and not the post-confirmation debtor. Wisdom is  seeking to circumvent the Bankruptcy rules and federal law to collect from the reorganized debtor. A creditor is not allowed to take such action. Especially in this case, where the creditor 's claim was reduced and expunged under court order. 

XXXX  had every opportunity to correct and furnish the bureaus with accurate information, in which it failed to do so. It is also clear Wisdom dropped the ball in amending its bankruptcy claim, thereby being entitled to far less, then was it was owned, even after a repossession. Wisdom  's sole remedy is its entitlement under the order Dated XX/XX/XXXX, by the Honorable XXXX XXXX XXXX and it may only look to the Bankruptcy estate.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation