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Dwayne B.
Dwayne B., Attorney
Category: Legal
Satisfied Customers: 32596
Experience:  Began practicing law in 1992
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In October of 2012 I requested new payment stubs for two loans

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In October of 2012 I requested new payment stubs for two loans I have from a credit union. They sent me new stubs with monthly payment amounts different from what was in our original loan agreements. We called them and they confirmed these were the amounts we would pay. Within 2 months we began receiving letters stating that our accounts were behind and needed to be brought current. I called collections since I was confused about these amounts and they could not figure things out and said they would get back with me once they did. I never heard from them. We continued receiving letters from collections. I then made several phone calls, leaving voice messages and still I heard nothing back, only receiving more collection letter. Both accounts were reported as delinquent and dropped my credit score by over 100 points. Then I finally discovered that the amounts they were demanding were the difference between the payments in our original loan agreement and the new payment amounts we received via new payment stubs back in October. I sent several emails explaining what I had discovered including pictures of the payment stubs, and demanded that they contact the credit agencies to rectify their mistakes. I still heard nothing back from them. They did send me new payment stubs for the original amounts though! As far as I know my credit is still damaged. Can I take legal action against them? I really just need some help on what I should do. Thanks, Josh

JD 1992 :

Hello and thank you for contacting Just Answer. I am an expert here and I look forward to assisting you today. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification.

JD 1992 :

I don't understand what you mean by "I finally discovered that the amounts they were demanding were the difference between the payments in our original loan agreement and the new payment amounts we received". Can you explain?

Customer:

Yes. So the credit union gave us payment stubs that said we owed $170 and $75 dollars each month (these are rough figures). Our original loan agreements stated that we would owe $240 and $80 dollars a month. Once we recieved our new payment stubs ($170 and $75) and talked to someone to get these new amounts confirmed, we then began paying these amounts. Apparently they never changed this in there system, so they were still expecting us to pay $240 and $80 dollars each. So after 7 months of this they said we owed $500 or so for one account and $40 or so for the other account. I never new this and no one there could explain the amount we owed. The credit union had added insurance to an account a year ago that ran up a similar figure, and I thought they had done the same thing again.

JD 1992 :

I understand now.

JD 1992 :

Yes, you can sue them for negligence and possibly violations of the Fair Credit Reporting Act.

JD 1992 :

There is also a possible action for breach of contract.

JD 1992 :

What you may want to do is hire a local attorney to send them a demand letter asking them to correct the problems. This may get the result you desire for a minimal fee.

Customer:

How much does an attorney typically charge for this?

JD 1992 :

For the letter they will probably charge less than $200, maybe even do it for free. If you have to bring a lawsuit it will be a minimum of $5000, with upwards of there not being unlikely. However, you can recover those amounts from the credit union.

JD 1992 :

Did you have additional questions?

Customer:

I only sent the original letter demanding the corrections to them via email. Should I send it through certified mail?

JD 1992 :

Yes, although you may want to just let the attorney send the letter. It has been my experience that if clients get a firm "no" after a certified letter then it almost always requires a lawsuit whereas if they let me handle the initial letter the chances of it resolving before a lawsuit is required are much greater.

Customer:

Ok, thank you. I have no more questions

JD 1992 :

Best wishes to you on this and please don't forget to leave a Positive Rating so I get credit for my work.

Customer:

You got thanks

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