Legal Question in Credit and Debt Law in New York
credit report
i want to know how companies can report somebody to a credit bureau without a court order. i am having a dispute with a gym who refused to end a contract and after i refused to pay him because i am no longer attend their gym they threatened to put on my record. they said they are not going to court with it. the same thing went with another company. they told me the same thing. and i wound up paying them because i am trying to save my credit. can you tell me how that happens. thank you
1 Answer from Attorneys
Re: credit report
many companies such as credit card companies and yes gyms such as ballys etc sign up customers to long-term contracts paying a certain amount each month or year. Probably 75% fall for this high pressure tactic, go a few times and then leave. These companies then report the default to the credit bureau (there are three (3) main ones, who then place the default on their files. When you try to obtain credit, these defaults show up and make others suspicious of your ability or willingness to pay.
They don't need a court order or judgment to do so. They are not trying to collect the monies from you, just want everybody to know what a credit risk you are to intimidate you to pay up.
What can be done is to hire a lawyer experienced in credit repair. It would take approximately $250.00 to clean up your credit from these companies It can be done by any lawyer, and does not need to be near you, as it is done through the mail.
It usually takes several months before you can expect any results.
Jeff Lazroe
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