The Fair Credit Reporting Act impacts every business. This is because the FTC requires businesses to report accurate information about debtors who owe money. Every business owner responsible for handling internal debt collections needs to understand The Fair Credit Reporting Act.
Organizations that fail to adhere to these laws might be risking costly fines. And in some cases, debts owed to them could be discharged. Debt collection is a difficult process. However, it is very important for any business handling debt collections to fully understand the law.
The Fair Credit Reporting Act Explained
A business needs to understand the Fair Credit Reporting Act. This act states that consumers have the right to verify the information on their credit report. It also states that businesses must ensure that the information on these reports is accurate to the best of their ability. It is essential the business understand this part of debt collection.
In the event your business receives a complaint from one of the credit bureaus (TransUnion, Experian or Equifax), you then have a 30-day period to verify that the debt owed is valid, or it has to be removed from the individual's credit report, according to The Fair Credit Reporting Act.
In debt collection, The Fair Credit Reporting Act is critical to understand. If you file a claim that is inaccurate, you could face legal ramifications if you did so intentionally. More so, the FTC, or Federal Trade Commission can work against your ability to file such claims in the future.
The Fair Credit Reporting Act does work on behalf of your business though. As long as the debt collection is accurate, it should be utilized by the business to ensure that other businesses know that this individual failed to make payment. Any business will want to know what to expect from a potential debtor before working with them.
Some Important Facts
For any business responsible for debt collection, much needs to be known about The Fair Credit Reporting Act. If they provide consumer information to the credit reporting agencies, they are also responsible for submitting only accurate information. These laws have been recently updated to expand the rights of consumers.
Consumers are able to learn what is on their credit report by filing a request with the credit reporting agencies. And, during that process, if there is any information deemed inaccurate, including missing account information, debt collection activity, or inaccurate history, the business must show proof of the accuracy of the debt or it is removed from the report. The Fair Credit Reporting Act puts the burden of proof on the business claiming the debt is owed.
Negative, but accurate, information can remain on one's credit report up to seven years. Bankruptcies can stay on up to ten years. Criminal convictions, or information related to employment applications for jobs with salaries over $75,000 can remain even longer.
Organizations that fail to adhere to these laws might be risking costly fines. And in some cases, debts owed to them could be discharged. Debt collection is a difficult process. However, it is very important for any business handling debt collections to fully understand the law.
The Fair Credit Reporting Act Explained
A business needs to understand the Fair Credit Reporting Act. This act states that consumers have the right to verify the information on their credit report. It also states that businesses must ensure that the information on these reports is accurate to the best of their ability. It is essential the business understand this part of debt collection.
In the event your business receives a complaint from one of the credit bureaus (TransUnion, Experian or Equifax), you then have a 30-day period to verify that the debt owed is valid, or it has to be removed from the individual's credit report, according to The Fair Credit Reporting Act.
In debt collection, The Fair Credit Reporting Act is critical to understand. If you file a claim that is inaccurate, you could face legal ramifications if you did so intentionally. More so, the FTC, or Federal Trade Commission can work against your ability to file such claims in the future.
The Fair Credit Reporting Act does work on behalf of your business though. As long as the debt collection is accurate, it should be utilized by the business to ensure that other businesses know that this individual failed to make payment. Any business will want to know what to expect from a potential debtor before working with them.
Some Important Facts
For any business responsible for debt collection, much needs to be known about The Fair Credit Reporting Act. If they provide consumer information to the credit reporting agencies, they are also responsible for submitting only accurate information. These laws have been recently updated to expand the rights of consumers.
Consumers are able to learn what is on their credit report by filing a request with the credit reporting agencies. And, during that process, if there is any information deemed inaccurate, including missing account information, debt collection activity, or inaccurate history, the business must show proof of the accuracy of the debt or it is removed from the report. The Fair Credit Reporting Act puts the burden of proof on the business claiming the debt is owed.
Negative, but accurate, information can remain on one's credit report up to seven years. Bankruptcies can stay on up to ten years. Criminal convictions, or information related to employment applications for jobs with salaries over $75,000 can remain even longer.
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Next, explore more important facts and resources about debt collection laws, as well as collection agencies services.
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