Legal Question in Credit and Debt Law in California
Negative credit reporting
Can a collections agency legally make a negative credit report for bills that are in dispute? If so, can they do this even after refusing to provide detailed information about the bill requested by the consumer?
2 Answers from Attorneys
Re: Negative credit reporting
They can report it. However, you can take steps to have it removed from the credit bureaus.
Even if they refuse to remove it, i.e., they verify it, you can make a written statement that must appear on the credit report in relation to the item.
Finally, if the item is incorrect, you can initiate litigation.
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Re: Negative credit reporting
A collector may not report adversely until after verifying a disputed debt. Credit reporting is considered a debt collection action by the FTC staff, and debt collection actions during the verification period are prohibited. Also, the debt must be reported as disputed if that is the case, or else may not be reported at all.
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