Legal Question in Credit and Debt Law in North Carolina

Collection account

A collection agency for a former landlord has reported a collection account to my credit report for alleged damage to an apt I used to rent, although no money judgment has been sought in small claims court. Can they legitimately report this account without a judgment substantiating the amount? There was no ''transaction'' which created the alleged debt amount, as you would find with a loan, credit card, or medical bill. And the lease does not seem sufficient to assign a future potential ''debt'' which a landlord may unilaterally define. What is to stop anyone who thinks (or wishes) they are owed money or damages from reporting to credit bureaus instead of going to court with the idea that someone will be intimidated and just pay up without question? Would such a damage claim be considered a tort claim (which by my understanding is not considered a debt under FDCPA)? Would that basis make the amount not collectable by the landlord or their agent without a money judgment?


Asked on 4/08/08, 9:27 pm

1 Answer from Attorneys
Jeff Rosner Rosner Law Firm P.A.

Re: Collection account

That is not a question I can answer off the top of my head but I am guessing you would have some claims against the Landlord or collection agency or both - possibly tort claims and possibly violations of Fair Debt Collection Act.

Debt is defined in the act as "The term �debt� means any obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance, or services which are the subject of the transaction are primarily for personal, family, or household purposes, whether or not such obligation has been reduced to judgment."

I would certainly argue that this does not fall into the category of a debt.

1692f (unfair practices) include:

The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.

Put it this way - if this happens to me, I would pursue them.

- Jeff

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Answered on 4/09/08, 8:02 am


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