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Author: Sergei Lemberg
How Long Before a Collection Agency Can Report to a Credit Reporting Company?
![Before Collection Agency Can Report]()
General Rule: A collection agency can report a debt to a credit reporting company once they establish sufficient communication and the debt is 31 days overdue.
The law requires that certain events occur before a collection agency can report a debt to a credit reporting company. If a debt collector reports you debt prematurely, they are in violation of the law.
Below you will find the requirements for a collection agency to report your debt. In addition, you will learn ways you can stop a collection agency when they report your debt illegally.
What are the Requirements for Reporting a Debt?
As a starting point, the debt must be past due for at least 31 days. In addition, there are specific requirements provided by the Consumer Financial Protection Bureau’s Debt Collection Rule. This rule requires certain communication between the collection agency and the consumer.
Specifically, a debt collector must have a conversation with you about your debt in person or by phone. They must also send you a written or electronic validation notice detailing your debt. This validation notice must contain the following information:
- Contact information for the debt collector
- The name of the creditor
- Account number
- Detailed information on the debt, including interest, fees and payments
- The current amount of debt you owe
- Information on how you can dispute the debt
After sending this notice, a collection agency must wait a reasonable amount of time (typically 14 days). This waiting period is required in case the notice was unable to be delivered (e.g., wrong address). Once a collection agency meets these requirements, they are free to report non-payments to a credit reporting company.
The FDCPA and Debt Collector Harassment
A collection agency will sometimes resort to various tactics to get you to make a payment. Some are legal while others are not. Illegal action includes prematurely reporting your debt to a credit reporting company or making threats to do so. These actions are illegal under the Fair Debt Collection Practices Act (FDCPA) and the Debt Collection Rule.
Note: The FDCPA prevents this and other forms of harassment and abuse that collection agencies often engage in.
What Can I Do if a Collection Agency Illegally Reports My Debt?
If a collection agency reports your debt before following the mandatory requirements, they violate the law. To ensure this illegal behavior does not continue, consider taking the following action:
- Send the Collection Agency a Demand Letter. This letter should detail how they illegally reported your debt. In addition, you should demand that they correct the report sent to the credit reporting company.
- Dispute the Report with the Credit Reporting Company. You will also want to submit a dispute with the credit reporting company. In doing so you will want to identify why the collection agency should not have reported your debt.
- Report the violation to a Government Agency. You can submit a consumer complaint to the Consumer Financial Protection Bureau (CFPB). This agency issued the rule for when a collection agency can report your debt. In addition, you can also file a complaint with the Federal Trade Commission (FTC) for any violation of the FDCPA.
- Sue the Collection Agency. A premature report can tarnish your credit score and cause further damage. Hire an attorney to take action if the illegal behavior is ongoing or you suffer any damages.
- Discuss Settlement of Your Debt. This is a strategic option if you think the collection agency would consider settling your debt at a steep discount. In exchange, you would agree to not file a lawsuit or take other action.
Conclusion
The debt collection process can be complex and overwhelming. You may not notice right away if a collection agency reported your debt prematurely. As a result, once a collection agency first contacts you pay careful attention to your credit report.
If a collection agency submits false or premature information to a credit report, you can take action. If you need advice, seek a consultation with an attorney who specializes in consumer rights cases.
Additional Resources
About the author:
Sergei Lemberg is a consumer rights attorney, practicing since 2006, whose practice focuses on consumer law, class actions and personal injury litigation. He is known for a United States Supreme Court case (Facebook v. Duguid) defending consumers from autodialers under the Telephone Consumer Protection Act of 1991 to send unsolicited text messages. He is also the author of Defanging Debt Collectors, a book that teaches consumers how to battle debt collectors and win.
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