Is a collection agency allowed to report to a CRA before notifying YOU of the debt?

Discussion in 'Credit Talk' started by LionHeart_, May 30, 2015.

  1. LionHeart_

    LionHeart_ New Member

    I am having an issue with an invalid debt. My former landlord repeatedly entered my apartment against the lease agreement so I provided a move-out notice moved out early. Now the former landlord has sent the rent for the months that I did not live there to a collections agency. The collections agency reported the outstanding debt to the CRAs on Feb 1 but I did not receive any notice from anyone until mid-May. My credit score when from 820 to 675.

    I filed a dispute originally with the former landlord and collections agency. A month later I disputed the debt with all 3 CRAs - TransUnion, Experian, and Equifax - and filed a small claims against the landlord and collections agency. At the time of disputing with the CRAs I asked them if they ever received a notice on file from the collections agency and at 29 days from when the collection agency received my dispute, neither of the 3 CRAs did.

    I have read the Fair Credit Reporting Act and the Fair Debt Collection Practices act but can't seem to find the answer to these 2 procedural questions:

    1) Is a collections agency required to notify an individual of the debt in question PRIOR to filing it with the credit reporting agencies?
    2) Is a collections agency required to notify the CRAs within 30 days after they receive a dispute from the consumer?

    Thanks!
     
  2. Dancer

    Dancer Well-Known Member

    Re: Is a collection agency allowed to report to a CRA before notifying YOU of the deb

    I don't know the answer but if you apply for a card that requires a score of 750 you will be turned down. You wouldn't have been turned down if he hadn't filed his fraudulent claim so you will now be able to demonstrate how his actions have "damaged" you.

    That'll help during your lawsuit in small claims court.
     
  3. mindcrime

    mindcrime Well-Known Member

    Re: Is a collection agency allowed to report to a CRA before notifying YOU of the deb

    1) No
    2) Yes
     
  4. jam237

    jam237 Well-Known Member

    Re: Is a collection agency allowed to report to a CRA before notifying YOU of the deb

    A) Actually, the FCRA does require notification of the intent to report adverse credit information. (a) it's not an actionable violation in itself, (b) the law doesn't specifically say how much time is required to wait between the notice and the report; so theoretically, if the company argues that they generated the notice at 8:00 am when they open, and tagged it to be reported at 8:00:01, would they theoretically be in compliance with the notice, they would argue yes, I would argue no.

    B) Well, they are supposed to provide a notice of dispute, BUT no time-frame is provided in the FCRA. Theoretically, they could tag the tradeline to never be reported again, and no update would be received notifying the CRA of dispute. Caselaw is confusing on the issue.
     
  5. JoshuaHeckathorn

    JoshuaHeckathorn Administrator

    Re: Is a collection agency allowed to report to a CRA before notifying YOU of the deb

    Hey LionHeart- I'm helping a person out who is going through this exact same process at the moment. Their Landlord filed a totally bogus claim and it's totally wrecked his credit scores.

    I'm curious how things played out for you. Are you willing to come back and give us an update on the next steps you took and what happened? Thanks so much!
     

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