Consumer complaint received 2015-08-14
Company: BBVA FINANCIAL CORPORATION
State: VA
Product: Mortgage
Sub-product: Other mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
The account was associated with a foreclosure - first delinquency in XXXX XXXX, and was later closed in XXXX XXXX with a balance of {$24000.00}. In XXXX XXXX I was declined credit. I panicked. I have been rebuilding my credit for 5 years and had a healthy credit score of XXXX. I reviewed my credit report to identify why I was declined credit when noticed Compass Bank was reporting I owed a {$24000.00} monthly obligation on a closed account. I disputed the erroneous reporting immediately through Experian. Compass Bank corrected the reporting to reflect a $ 0 monthly obligation. However, in remediating the monthly balance obligation, Compass Bank created a new issue. 
In remediating the monthly balance obligation Compass Bank reported the closed Home Equity Line of Credit as a charge off using XXXX XXXX as the date of charge off ( the date of my query ). 
If Compass Bank failed to charge off the account in XX/XX/XXXX the onus is on Compass Bank not the consumer. I was already penalized with 30. 60, 90 day lates and the closure of the account. The responsibility for accurate reporting is on Compass Bank. *The laws are referenced below. 
Per my credit report I now have a recent late as of XXXX XXXX. How can I be late on a closed account - an account that should have been charged off in XX/XX/XXXX? 
The charge off should have been reported in XX/XX/XXXX - not XX/XX/XXXX. I understand the charge off will fall off in 2 years and that XXXX notated on the account ; however, I am now unable to get prequalified for a home purchase because Compass Bank 's negligent reporting shows I have a recent delinquency on my credit report. This is false and misleading information. 
It appears that my credit report accuracy is at the mercy of erroneous information fed in by subscribers. The charge off date should be XXXX XXXX not XXXX XXXX. Reporting XXXX XXXX is adverse information. It is misleading. I have made numerous efforts to purge this inaccurate information and my efforts have been fruitless. 
RESOLUTION SOUGHT : Remove recent late on my credit report reporting XXXX XXXX. Reflect charge off date to XX/XX/XXXX. ( the charge off is noted to fall off in XX/XX/XXXX which proves they recognize the XX/XX/XXXX date but it is not reflected accurately in all their reporting fields, for example : the XX/XX/XXXX charge off date ) CONCLUDING STATEMENT : Again, I ask that you please correct the reporting of the charge off to reflect XXXX XXXX. Additionally, please remove the recent delinquency reporting as I can not be late on an account that has been closed for close to 5 years ( 2 months shy ). 
I ask for the most expeditious resolution of this as I am trying to prepare an offer on a home but am currently unable to move forward due to the discrepancies of Compass Bank 's reporting. 
If this can not be remedied I politely request reasons and references to your governing authorities as I am prepared to seek representation. 
Thank you in advance for all of your hard work and efforts to resolve this. 
VIOLATION:15 U.S.C. s 1681o for negligent failure to comply with section 1681e ( b ) of the Act. 
United States Code Title 15. Commerce and Trade. Chapter 41. Consumer Credit Protection. Subchapter III. Credit Reporting Agencies. 15 U.S.C.A. 1681c. Requirements relating to information contained in consumer reports : The 7-year period referred to in paragraphs ( 4 ) and ( 6 ) of subsection ( a ) of this section shall begin, with respect to any delinquent account that is placed for collection ( internally or by referral to a third party, whichever is earlier ), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action. 
***Charge-offs by law are to be reported 180 days after the first delinquency.

Company response to consumer: Closed with explanation