Expert: Apex Credit Services, LLC - 12/23/2007

Question
I had an American express charge card which required the balance to be paid off each month.  My business got slow and I could not pay off the whole balance.  I made a verbal agreement with AMEX to pay the balance over 9 months, made every payment and they have received every penny I owed them.  Now, they report to credit bureaus (experiAn, transunion, equifax) "charge off-collections."  They charged off nothing, received every dime and no collection agency was involved.  They refuse to fix the reporting and the credit bureaus simply tell me, IN RESPONSE TO MY WRITTEN COMPLAINT,  that AMEX has confirmed the reporting.  But its all a lie.  Advice?

Answer
Larry:

    You have two potential options here and I will explain them below:

    1)  You can communicate with AMEX directly under the auspices of the FACTA amendments to the FCRA.  Therein, you would request "verification" of what they are reporting.  However, there is no private cause of action under the Act thus, it has little teeth.  They may not respond or even if they do, it may not be to your satisfaction.  In any event, I would suggest proceeding under the above before moving forward with suggestion number two.

    2)  You could institute a civil action against AMEX under the FCRA; specifically, 15 U.S.C. 1681s-2b.  You have already hooked them thereunder insofar as you disputed the tradeline through the credit reporting agencies.  Please ensure that you pinpointed the error; in this case, the pay status.  However, you need to sustain some form of damages to have any actionable claim.  This would come in the form of a credit denial or interest rate increase.

                Apex Credit Services, LLC