Question: Reporting on credit report a violation of FDCPA?

Here is a question I received last night:not legal advice question

Is reporting on my credit report by a collection agency considered collecting on a debt and a violation of the FDCPA?

Answer:

Do you have an account with them? If you answered yes, then they probably have not broken the FDCPA.

If you answered no, then they have broken the FCRA and FDCPA, most likely. I would give you a more definitive answer if you post more information.

Thanks for fighting the essential fight, Boiler

2 comments
  1. Do you have an account with them? If you answered yes, then they probably have not broken the FDCPA.

    If you answered no, then they have broken the FCRA and FDCPA, most likely.

    — I am researching this question for a paper. Do you mind giving the difference between a collector you have an account with as oppose to a one without and why this difference matter for determining if there is a violation of FCRA and FDCPA

    • Irene,

      My opinion is that you don’t have an account with any collector. What value did you get from them to cause the alleged debt? Nothing.

      Debt collectors usually buy evidence of a debt and run with it. The collectors count on consumer’s ignorance to do one of two things:

      1. Strike a deal. By setting up payments, you have admitted a debt. Admitting the debt gives them the right to report on your credit report.

      2. Sue you. 95 % of people who are sued in county court don’t reply to the lawsuit. When you do not reply, you lose and have a default judgement against you. When you have a judgement against you the collector can report to your credit report.

      If you are doing research on this subject, I recommend reading the actual law (FCRA) and a FTC publication: “The Structure and Practices of the debt buying Industry”. You can download it here:

      http://www.ftc.gov/os/2013/01/debtbuyingreport.pdf

      The FTC report is excellent knowledge and is good information for a college paper or whatever you happen to be writing. The FTC document is also great for court cases.

      Email me if you have further questions – boiler@notlegaladvice.org
      Fight the Essential Fight, Boiler

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