Can unpaid charges be sent to credit bureaus without legal proceedings?

[Haakon]

What is the name of your state (only U.S. law)? California

A landlord is charging a friend of mine an exorbitant amount of money for modest damage/late fees now that his lease has ended. She took the entire security deposit, and is demanding the tenants pay many thousand dollars more. She hired a collection agency to recover the charges, and the agency is contacting the tentants frequently. They feel the charges are unjustified, but are also worried that the unpaid charges could be sent to the credit bureaus. Can the charges be sent to the credit bureaus if the charges are not paid?

 

[Ohiogal]

Yes reports can be made to the credit bureaus without legal proceedings. Your friends should properly dispute such charges.

 

[Cvillecpm]

SURPRISE!`! * Yes, the real world works outside the court proceeding and the landlord is SMART to place the deliquent item on their tenant's credit report....exTenant can dispute it IN WRITING and landlord can provide evidence and it will STAY on the tenant's credit report until the landlord reports it paid!!!

 

[Haakon]

SURPRISE!`! * Yes, the real world works outside the court proceeding and the landlord is SMART to place the deliquent item on their tenant's credit report....exTenant can dispute it IN WRITING and landlord can provide evidence and it will STAY on the tenant's credit report until the landlord reports it paid!!!

Thanks for your reply. However, the landlord has refused to provide any receipts for the repair work done, and the tenants would like some evidence that the charges are justified before paying. What do you advise?

 

[Cvillecpm]

Providing receipts is legislated by state law....if the state landlord-tenant does not require it, then the landlord does not have to provide them to the tenant.

I've had tenant dispute a charge on their report and provided the CA with copy of the state law and the move-out inspection report and deposit itemization and it stayed on until they paid IN FULL with interest at 18%

 

[ecmst12]

It is not LEGAL for these charges to be reported to the credit bureaus without a judgement in place.

It is perfectly legal for them to hire a collection agency, however.

 

[Baranov]

Reporting to CB is routine by Credit agencies. Most even call it an added benefit.

 

[ecmst12]

But OP is not contractually obligated to pay this debt, it's not like a credit card or a utility bill. This is not proven to be a valid and enforceable debt until a judge says it is. Until then, it is alleged and disputed.

 

[Cvillecpm]

Collection agencies can place a negative item on credit reports by a SUBSCRIBER without a judgement.

Many larger apt complexes are reporting unpaid rent for current residents electronically DIRECTLY from their on-site PM software....the item remains until the rent is paid and reported!!!

 

[ecmst12]

This isn't rent. This is alleged damage to the apartment which has still not been proven or agreed upon.

 

[Cvillecpm]

Again, it can still be reported through the CA to the ex-tenant's credit file.

My point is that the retail credit process that credit card cos uses for their accounts is NOW available to apartment and PM firms through their software and DSL lines....Credit providers WANT this information and encourage the reporting to keep their credit files current

 

[treese]

It is not LEGAL for these charges to be reported to the credit bureaus without a judgement in place.

It is legal. If the tenant does not dispute the charges in writing or demand proof of the charges from the collection agency, then they are in effect accepting them.

Having a judgment would be undisputable.

This isn't rent. This is alleged damage to the apartment which has still not been proven or agreed upon.

These charges are disputable. A smart tenant would immediately dispute the charges and halt the collection action and credit reporting. Most tenants ignore notices of any kind, as if they will just go away, allowing the collection & credit reporting to go forward.

 

[Haakon]

I didn't realize I was bringing up such a hotly contested topic! In any case, it's clear from your responses that it's the tenants obligation to dispute contested charges in writing.

If the collection agency refuses to amend the charges, what course of action is to be taken? Specifically, the land lord is charging several thosand dollars to replace some cheap carpeting in the living room that was already stained and worn out when the tenants moved in. (In fact, she told the tenants she was going to replace the carpet before they moved in, but she didn't). She has also charged a $1100 "managment invoice fee" without providing a coherent explanation for this charge. If the collection agency can't justify these charges, what is the next course of action for a person to take?

 

[Cvillecpm]

Sue the landlord for the entire return of your deposit and let the landlord counter sue you. If you win and the judge says no monies are due to them, that is what you provide to the CA....