Charge off legal requirements

QuestionsCharge off legal requirements
Tristan Schilling asked 4 years ago

I have a charge off from Discover on my credit report for a hefty sum.  The account shows via my Transunion report that it was charged off in August, 2016.  I received a letter from them dated August 3rd saying they were hiring attorneys to try to collect the balance “Attorney placement pending”.  Since I’m disabled and the only income I have is from the SSA I called them and informed them of this, since a judgment would result in no way to garnish wages and would be a waste of time for both me and the company.  They wouldn’t take my word for it so I emailed them a copy of my disablity award letter from the SSA and never heard back.


A few months later (Nov or Dec 2016) I received a second letter (with no date) that reads (the following is the full body of the letter)


“In a recent review it came to our attention that we did not send you the following letter prior to your account charging off. Please review the letter content and contact Discover if you have any questions. 


Pursuant to the terms of the Cardmember Agreement and due to the continued delinquency of your account, we have now closed your account. For your own protection, cut your cards in half and destroy them. We will credit your account with your Cashback Bonus (or Miles) balance if you have one.


Please call us immediately at 1-800-347-7504 between the hours of Monday through Friday 8:00 am to 11:00 pm, and Saturday 8:00 am to 12:13 pm EST to discuss important account information. We will be happy to answer your quetions and address any concerns you may have regarding this account.”


My question is, were they required by law to notify me they had closed the account BEFORE they reported the account as a charge off? And if so how can their error help me get this negative item removed from my credit report?   


Additional info I’m not sure is relevant:  From the info on my credit report it looks like the last month the balance went up as normal was May, 2016, (then it went down by $ 5 in June, no idea what that’s about). There was no balance reported in July, then $ 77 was added to the August balance and they reported that final balance 6 more times (most recently Jan 2017). 

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