Posted On: April 20, 2012 by Watts & Herring, LLC

Debt Collection and Credit History

Debt collection can have a significant impact on your credit history. This article is designed to help you understand how debt collection can affect your credit report. We can help you understand your protection and rights under the law.

You can schedule a free, confidential consultation with a lawyer dedicated to helping consumers. Contact us or call our Birmingham office at 205-879-2447 or 205-714-4443.

Consumers Facing Debt Collection: Important Facts

Debt collectors and debt buyers do have the right to put a note on your credit report about the debt. Having a credit history of debt collection can negatively affect your chances of getting a mortgage or other loan.

A consumer has the right to and should dispute any debt that is false. In addition, if you send a credit report dispute to the debt collector and the credit reporting agencies (Equifax, Experian, Innovis, and TransUnion), a false account must be eliminated from your credit reports. The account must be shown as “disputed” even if it is kept on your reports. If a debt collector fails to do so, you can sue under the Fair Debt Collection Practices Act or the Fair Credit Reporting Act.

Dirty Tricks By Debt Collectors That Can Impact Your Credit History

We have seen debt buyers continue to report debts to credit agencies as delinquent and undisputed, even after being notified that it is disputed by the consumer, and even after the consumer has won the debt collection lawsuit. This is just one of the dirty tricks used by debt buyers and collectors to treat customers unfairly and illegally.

Debt buyers may also take part in other activity that violates the Fair Debt Collection Practices Act. For instance, they may “re-age” your account. This means that instead of letting the debt clear from your record after seven years, they will report the debt as more current in order to keep it in your debt history. They may also threaten or intimidate you with ruining your credit by keeping false information on your reports.

Know What Debt Collectors Are Saying About You By Requesting Your Free Credit Reports Today

If you have been contacted by a debt buyer or a debt collection agency, you need to understand the impact on your credit history and your rights. Every year, you are entitled to one free credit report from each bureau (Equifax, Experian, Innovis, and TransUnion). You can request a credit report by completing and mailing the request form, calling 1-877-322-8228, or visiting the official website. You can obtain your free Innovis report by downloading the report request form or by calling toll free at 1-800-540-2505.

When you meet with us, bring a copy of your free credit reports, any notes regarding the discrepancies, and documents that prove the errors. We will carefully examine your case, explain the law, and present your options. We are here to help you.

Schedule your free confidential consultation by filling out the intake form on our “Contact Us” page or by calling us at 205-879-2447.