Debt Collection Methods & The FDCPA – Part Three: Credit Reporting

26 Mar Debt Collection Methods & The FDCPA – Part Three: Credit Reporting

There are generally three debt collection methods that debt collectors use:  letters, telephone calls, and credit reporting.  These methods fall under the category of communications as defined by the Fair Debt Collection Practices Act.  Each method is discussed in this series with a brief commentary regarding what is and is not permissible (and in some instances what is required) under the FDCPA.  Remember that harassment or abuse, false or misleading representations, and/or unfair or unconscionable means to collect a debt are NEVER permitted.  This post will discuss credit reporting.
A debt collector can and will report information regarding a debt to a credit reporting agency.  See this interesting post discussing this method of collecting debts.  However, a debt collector cannot provide false or misleading information.  The FDCPA forbids a debt collector from falsely representing the character, amount or legal status of any debt.  Section 1692e(2).  Furthermore, the FDCPA strictly forbids a debt collector from “communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed.  Section 1692e(8).

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