It seems that despite the passage of bills like the Fair Debt Collection Practices Act and the Fair Credit Reporting Act (FCRA), debt collectors are acting badly when it comes to collecting debts. This is especially true of old debt. Old debt that has passed its statute of limitations is oftentimes sold again and again, and each new collection agency that buys it makes every effort to collect on it. This is often what causes debt collectors to trample the rights of consumers. So, how can debt collectors negatively affect your credit report, and what can you do about it? Follow along as we discuss the possibilities. Debt Collectors: False Reporting Debt collectors are only allowed to report negative remarks on your credit report if the debt is current and valid. But many times, debt collectors will report bad information to a reporting bureau without first verifying the identity of the consumer, or before the consumer has had a chance to dispute the debt. What's more, some debt collectors will report that a debt is overdue when the debt has in fact long passed its statute of limitations. This can cause great inconvenience for people because these reports affect so many areas of our lives. For instance, many employers or landlords will check the credit of an applicant-as will any place where you apply for credit. Congress understood the enormity of the situation when it passed the FCRA in 1970. What the Fair Credit Reporting Act Does The FCRA limits the damage that debt collectors can do to a credit report by giving consumers more rights to their own reports. For instance, if a debt collector makes a false statement on your report, you have the right to dispute it in writing. You can contact the credit reporting agency and they are required to investigate the complaint and then report back to you. If the statement is false, they are required by the FCRA to remove it from your report. Of course, unless you know what's on your report, you can't very well dispute it. The Fair Credit Reporting Act gives you the right to get a free copy of your report in a few ways. First, if you're denied credit, a rental or a job because of information on your credit report, you have a right to see what's in your report. Request a copy from the reporting agency that provided the report within 60 days of your denial letter, and they'll send you a free report. What's more, the FCRA has made it law that each of the three credit reporting agencies have to give you a copy of your report once a year. Simply go to the official site and request yours. Many experts recommend that you request a report every four months from one of the agencies, so that you can monitor your credit history year round. If unscrupulous debt collectors are wreaking havoc on your credit report, don't despair. The FCRA has made it possible for you to take control of your credit history and repair any unwarranted damage that they've done.
Article Source: http://bizymoms.com/business
Sergei Lemberg, Esq. is the Principal of Lemberg & Associates, a law firm specializing in fair debt collection law, lemon law, and other consumer law.