Zombie Debt

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Zombie Debt
« on: July 20, 2017, 11:29:48 PM »
Okay to start off a little bit of Background.

I filed my consumer proposal in April 2014 for $48600.00. I received my certificate of full performance on the 13 of October 2016. I have a fairly high income so my payments and the amount of my proposal were relatively high.

I had 12 creditors as I had caught myself up in the payday loan death spiral.  One of the creditors "Wonga Payday Loans" went bankrupt while I was in the process of paying off my consumer proposal. unbeknownst to me they sold my debt after agreeing and receiving dividends in the consumer proposal to a company called KDC.

Once my proposal was complete I checked my credit score by signing up with both Equifax and Transunion for their credit monitoring. The credit report had massive amounts of errors however my credit score was hovering right at 654 with Equifax and 622 with Transunion and nothing listed as collections. Pretty good huh? well not long after I sent in a letter to make the appropriate corrections on my credit report did everything drop. Both scores dropped to the low 500s. Then to make matters worse almost six months out from the consumer proposal a debt collector( Kingston Data and Credit) listed a debt (debt was Wonga and included in proposal) under collections so slam !!!! down I go again.

I contacted KDC and informed them that this debt was included in my proposal and if they had any further questions to contact my trustee. I also kindly asked that it be removed from my credit report as it is against the law to undertake collection activities if a Consumer proposal has been filed. I waited and contacted KDC a week or two later as nothing had changed. Their reply was that they would zero the balance however they would not remove it from my credit files.

I sent a letter to both Equifax and Transunion in this regards including some other errors that were also still listed. All of the other errors were removed/ rectified on both files however there was no mention of the Collection on either report. The corrections however now have me sitting at 591 with Transunion and 531 with Equifax.

Here I am another couple of months out and I have contacted the office of Consumer Affairs who have directed me to ask for the removal once more from both Transunion and Equifax and if that doesn't work to contact them and they will order it removed. They agree KDC is in the wrong by listing a collection that was included in the consumer proposal filed prior to the collection activity commencing.

It has been a bit of a nightmare trying to remove this from my credit report and one can only imagine how badly a collection hampers ones score. especially being listed after a consumer proposal.

Anyone else run this gauntlet.

Zombie Debt sucks..... and so do collection agencies.


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