Expert: Apex Credit Services, LLC - 1/4/2008

Question
I took out an AMEX Business Line of Credit in 2006 and then I received a call from an AMEX rep regarding my account. I called her back but I received voice mail. I left her no less than 13 voice mails that were not returned. I then received a call from a Collector from GC Services. He said that my account had been "assigned" to them for collection. I was stunned since I was never made aware that my account was derogatory. I did not receive a letter but merely the single call from the AMEX rep who failed to return my call. The collector told me that my account was in default and needed to be paid on full. I told him that I needed to speak to the AMEX rep and he said I could not since GC is handling my account. I tried to call AMEX and was told that they could not speak to me as I would now have to contact GC. Here I am shocked to hear that my account is in collection and AMEX did not even want to return my calls. The GC rep said if I would pay 20% of the account and then monthly payments then this account would not appear on my personal credit report. I made the 20% payment and then checked my credit report. GC lied as AMEX was reporting it as a collection. I was in the middle of refinancing my home and my score dropped from 752 to 541 as a result. I never received anything in writing from AMEX and I received my first collection letter from GC but 10 days AFTER I paid the 20%. I am now unable to refinance my account and I am livid. How can AMEX charge off on a Business account and report it on my personal credit report without notifying me about it being derogatory? If I knew that it was derogatory I would have paid off the balance. I am a Calfornia resident. What are my rights and remedies against AMEX/GC. I have read a lot of negative items on internet websites about these two companies.

Answer
Dale:

    Your first step in the process should be to dispute the AMEX account through the credit reporting agencies.  It is my belief that business accounts should not appear on personal credit reports (although there is no currect authority to support it).  As such, convey that to the credit reporting agencies.  You may also consider attacking the date of status/date of major first delinquency.

    In addition, you should contact AMEX directly.  Reduce all communications to writing.  Find out there department for billing and send them a dispute pursuant to the FCBA inasmuch as you need some fashion of accounting.  If you're still in the prescribed timeframe, they must remove the information from your reports until their investigation is concluded.  You will also wish to request verification of the account directly from AMEX under the auspices of the FACTA amendments to the FCRA.

    Finally, you need to reference California's Rosenthal Act; i.e., a state law parallel to the FDCPA.  I believe it applies to original creditors as well as debt collectors.  See what is applicable and proceed accordingly.

              Apex Credit Services, LLC