Consumer complaint received 2018-07-30
Company: Lendmark Financial Services
State: CA
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account information incorrect

Complaint:
RE : Lendmark Financial Services Effective XX/XX/XXXX my account was transferred from XXXX XXXX to Lendmark Financial Services ( I-1 ). 

Around XX/XX/XXXX I got notification from XXXX XXXX that negative information had been placed in my credit file. 

Around XX/XX/XXXX I noticed that Lendmark Financial Services was posting to XXXX two ( 2 ) entries for my account that was transferred from XXXX XXXX. ( I-2 page 2 ).

I noticed that one reporting ( I-3 ) entered on XX/XX/XXXX showed that the account was closed with a XXXX   balance and included in my Chapter XXXX bankruptcy. 

The second report ( I-4 ) entered on XX/XX/XXXX showed that the account was open with a {$5000.00} balance and 90-119 day late payment status.

This entry caused a 101 point drop in my credit score with XXXX effective XX/XX/XXXX ( I-5, I-6 ). 

However, the original account ( I-7 ) which was reported as closed in bankruptcy accurately shows that my account never had a 30/60/90 day late reporting ( see page 2 of I-7 ) Around XX/XX/XXXX I filed a dispute with XXXX and requested that the open account reported by Lendmark Financial be deleted because the account was closed and included in my bankruptcy and that Lendmark was doing duplicate credit reporting on the same account. 

On XX/XX/XXXX Lendmark re-entered the open account into XXXX ( I-8 ) showing the account as open with an outstanding balance of {$5000.00} and 90-119 day late payment status. There is no reference to the account having been included with my bankruptcy in XX/XX/XXXX. 

A current summary of my Credit file ( I-9 ) reflects that I have Total Open Balances of {$7800.00} of which {$5000.00} is listed as other loans ( Lendmark ). 

On XX/XX/XXXX at XXXX XXXX I talked with XXXX XXXX of Lendmark Financial Credit Dispute Department ( XXXX ) or ( XXXX ) XXXX ) who stated to me it is the policy of Lendmark Financial to close the original account of a borrower when the account goes to their bankruptcy department and open a new account with a new loan number for the purpose of continuing to report the loan as open with the credit bureaus during the entire time of the bankruptcy. For this reason I have two accounts reflected with XXXX at this time. She acknowledged that I have no legal obligations for the loan nor do I need to make payments, but this is Lendmarks procedure for handling the accounts of customers who file bankruptcy. 

I researched on XXXX  encyclopedia and learned : ( Copied from their webpage ) In fact, creditors wont be able to report your debt in a variety of ways that could cause your credit to suffer, such as allowing the obligation to show as : currently owed or active late or delinquent or outstanding charged off having a balance due, or converted to a new type of debt ( re-aged or given new account numbers, for example ). 

Thus the reason for my complaint against Lendmark. My credit file reflects that the account is being shown in XXXX  as : currently owed ( See I-9 page 1 ) or active late or delinquent or outstanding ( See I-9 page 2 ) having a balance due ( See I-9 page 1 ), or converted to a new type of debt ( re-aged or given new account numbers, for example ). ( Per my discussion with XXXX XXXX & I-9 page 1 )

Company response to consumer: Closed with explanation