I have a small corporation run out of my home. I always pay cash - have never used credit for the company at all so I assume that I have no credit report for the corporation. Recently had a dispute with an answering service I once used. They came up with a claim that I owed them $320. I do not. They said pay up or we will report it to all three CRA's. They now claim they did. Assuming they did, what will the CRA's do? If they had no file on the corporation, will they create one so they can report this? My concern is that I need to open up a corporate bank account and am concerned they may find this negative. I will not pay money I do not owe.
They MUST have PROOF you owe the debt. That means MORE than just your name in a computer. They must have signed bills, statements, charge slips, payment history. That is one reason I pay ONLY with a CREDIT CARD OR CHECK...I HAVE A "PAPER TRAIL"... Don't take credit cards, don't take checks, DON'T GET MY BUSINESS.
KAREN...we play this GAME all the time... You owe me $118.12...I don't have any proof, except your name in the computer...YOUR GOING TO SEND IT TO ME ANYWAY...RIGHT???? Good luck.
George: I was not clear. When I said I paid cash, I meant I never used credit. In fact, I did use checks so I have proof I did pay. Reading my original post again , I guess this was not clear. There was never a written contract so they cannot prove anything. The question I need answered is on the credit reporting. Will the CRA's set up a file on the corporation if they get this reported from the answering service? I need to open up a corporate checking account so I need to know if this will pop up. Thanks
Is your company actually an active corporation? Do they even know your personal info? The 3 CRA's only report consumer info. Business credit is tracked mainly by Dunn & Bradstreet and Experian Business Profiles. These databases are completely seperate from the 3 consumer CRAs.
If you are denied because of WRONG information on a credit report, DISPUTE IT. Tell the answering service you have PROOF that they are WRONG... And if you get DENIED your checking account, you can file in SMALL CLAIMS COURT for up to $5,000... You can also find MANY banks that are NOT going to run a credit report... I haven't had a bank try that with me...BUT if they did, I would WALK OUT WITH MY MONEY IN MY POCKET AND SAY "BUH~BYE"
Karen, If you organization is a limited liabilty company or a corporation (C or S) it is covered by a veil which means your liability is limited, unless you signed a personal guarantee. If you're an SP you are the company and do not have that veil of protection. D and B is the CRA for most businesses, unless you're an SP then it is based on your credit (EQ, EX, and TU). I highly doubt they have done anything. It is all talk. Since you have proof I would put a stop to it. Contact the creditor and fax them the check. If they refuse to back off and correct your records with their accounting department threaten to sue and then do it. Good luck. Dani
