Can collection agency report alleged debt to credit bureaus?

[curiousv]

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

Here is a situation....creditor thinks that debtor owes certain amount of money but debtor thinks the amount is not right and he owes only about half of what creditor says..
He has his legal arguments as to why he only owes half than what creditor says...

So there is a dispute about amount of debt...there is no dispute that debtor owes creditor. ...debtor is willing to pay what he thinks he owes to creditor but credit does not agree

and lets say credit decides to sell debt to collection agency...

Now collection agency has this debt...can they ask immediately report to credit bureaus or they have to clear the dispute about the amount?

What are the laws before a collection agency can report debt to credit bureaus...do they need to have judgement from court?

Merely getting billing statement credit has against debtor is enough for them to report it to bureaus and than later ask debtor to pay?

Do they have to give certain time limit for debtor to pay before they can report to Credit bureaus?

Please take some time to explain or refer to internet links for understanding as I could not find it myself.

 

[adjusterjack]

and lets say credit decides to sell debt to collection agency...

Now collection agency has this debt...can they ask immediately report to credit bureaus or they have to clear the dispute about the amount?

The creditor can report the delinquent amount one day after the debt becomes delinquent.

they have to clear the dispute about the amount?

No.

If the debtor disputes the amount it's up to the debtor to prove what he owes or doesn't owe until the creditor sues him. Then it's the creditor that has to prove it. In other words, until it goes to court, it's up to the debtor to convince the creditor. In court it's up to the creditor to convince the judge.

What are the laws before a collection agency can report debt to credit bureaus.

The Fair Credit Reporting Act

The Fair Debt Collection Practices Act.

Both are federal laws. You can google them. Most states have corresponding laws of their own. You can google them, too.

do they need to have judgement from court?

No, not to report a delinquent account to the credit bureaus.

Merely getting billing statement credit has against debtor is enough for them to report it to bureaus and than later ask debtor to pay?

Yes.

Do they have to give certain time limit for debtor to pay before they can report to Credit bureaus?

No.

The debtor has had plenty of time to pay.

I find it amusing that people who default on their debts always think the creditors are doing wrong when the creditors insist on getting paid.

 

[curiousv]

You said..1.The creditor can report the delinquent amount one day after the debt becomes delinquent

When there is a dispute about amount between creditor and debtor ...who decides when account becomes delinquent?


2. You said merely getting billing statement is enough for collection agency to report to credit bureau?
This means creditor can put any amount he wishes on this statement and debtor under threat of credit score damage will be forced to pay ? this does not make sense to me..

3. Even though debtor has proof that creditor is asking more than debtor owes him...to avoid credit score he will be forced to pay?
that means credit score becomes kinda extortion.

 

[CTU]

You said..1.The creditor can report the delinquent amount one day after the debt becomes delinquent

When there is a dispute about amount between creditor and debtor ...who decides when account becomes delinquent?


2. You said merely getting billing statement is enough for collection agency to report to credit bureau?
This means creditor can put any amount he wishes on this statement and debtor under threat of credit score damage will be forced to pay ? this does not make sense to me..

3. Even though debtor has proof that creditor is asking more than debtor owes him...to avoid credit score he will be forced to pay?
that means credit score becomes kinda extortion.

Not even close to extortion. I don't think you understand the very basic concepts adjusterjack has tried to explain to you. You may want to research before you ask more questions - ie, use a dictionary, or Google.

 

[adjusterjack]

CTU is right, you're not grasping the basic concepts so, before discussing this further, please answer the following questions:

1 - Type of debt?
2 - Date of default?
3 - How much owed on the date of default?
4 - How much is the creditor claiming is owed now?
5 - What "proof" does the debtor have in support of the amount he says he owes?

Be SPECIFIC about the dates and amounts and the "proof" if you want any comments even close to being helpful.

 

[Zigner]

One more question: Why do you feel the amount the creditor wants is twice what you owe?