Let 's review a few facts to make sure we are on the same page. It is the law that says consumer debt must be Charged-Off / Written-Off after 180-days of non-payment. This means the Tax Credits have been applied to the Profits/Loss of the Creditor. IRS Rules say a Creditor can not double-dip and get paid twice. 

This loan was connected to a house that went into foreclosure with the holder of the first mortgage, XXXX XXXX. XXXX XXXX is in compliance with the law by no longer reporting a balance on the Mortgage on my credit report. You 're reporting the second mortgage as though it is still a performing asset that is n't in-collection, or closed, and continued to indicate the account is 180- days late from XX/XX/XXXX through XX/XX/XXXX. I 'm willing to bet the FTC might have a few questions on the matter. 



In a letter dated XX/XX/XXXX you indicated the originator of the loan is the same as the holder of the first mortgage, XXXX XXXX. I would venture to say that XXXX XXXX failed to let you folks know they foreclosed, or did they? Your letter stated " loan was cancelled by the investor on XX/XX/XXXX. '' This loan was pulled from your portfolio, and you started reporting the loan 180-Days LATE at that point. XXXX XXXX saw all they were going to see on the sale of the property. Your letter went on to explain, " However, on XX/XX/XXXX, the aforementioned charge off was reversed and the loan was assigned for collection to XXXX XXXX XXXX. ( XXXX ). '' INVESTOR CANCELLED means you were no longer " Servicing '' this loan. You can not reverse a Charge-Off years later, and it was n't your " loan '' in the first place. 

Based on the previous paragraph, it is my request and sincere hope that you will completely remove this record from my credit profiles. The reporting of this record is clearly in violation the FDCPA, and has seriously impeded my abilities to conduct my business. However, technically, this record should see the following changes to be compliant with the FCRA : " Payment History '' should be completely removed ( preferred ), or at least in XX/XX/XXXX should indicate the account is CLOSED ( " CLS '' ) and remain closed for the rest of any reporting ; " Date of Status '' remains unchanged ; " Recent Balance '' should indicate " {$0.00} '' or " Not Reporting ; '' " Status '' should indicate " Transferred/Closed, '' and " This account is scheduled to continue on record until XX/XX/XXXX ; '' and the comments should be empty. 

Not that your firm had any right to pursue a Judgment, the statute of limitations on your ability to sue have run out. 

The reporting of this account is in violation of IRS Rules ( as defined in Para 1.166-2 ( d ) ( 4 ) ), and further supported by Uniform Retail Credit Classification and Account Management Policy, 65 Fed. Reg. 36903 ( XX/XX/XXXX ), which requires consumer credit be Charged-Off after 180-days of non-payment. Your firm is in violation of this rule by continuing to report a balance on a Charged-Off account, still reporting " Open, '' that should be Closed, reporting a {$0.00} balance, and not in Collection. I am maintaining a careful record of my communications with you on this matter for the purpose of filing a complaint with the FTC. 

A copy of this correspondence will be sent to the FTC should your firm not satisfy the requests herein. 

Best regards, XXXX I do believe XXXX XXXX is out of business too, making this an uncollectable debt, because XXXX is a XXXX XXXX company and not the lender. 

This letter was Notarized and sent Certified Mail. Although the reporting has changed it is still reporting a balance, and depending on the source ( Bureau ) not closed. This is killing this guy 's credit score at TransUnion. 

XXXX report from XXXX dated XX/XX/XXXX TRANSUNION XX/XX/XXXX XXXX XX/XX/XXXX