Why Debt Buyers Must Delete Credit Reporting When They Lose Their Collection Case Against You
When Alabama consumers are sued by debt buyers, this is a very disturbing event. Fears of losing . . . fears of being garnished . . . fears of being forced into bankruptcy enter the mind.
But when the battle is finally over and the Judge announces “Verdict in favor of the defendant (consumer)” there is great joy. The case is over. The debt buyer has lost.
But what about the credit reporting by the debt buyer? If you have read our materials you know we say the debt buyer has to delete the credit reporting on the account that it sued you on. Why?
Because you don’t owe it!
Remember the debt buyer sued you — claiming — that you owed it money. It lost. You do not owe the money.
So . . . if you don’t owe the money then how can the debt buyer claim on your credit report that you owe this money? It can’t!
Well, to be accurate . . . it should not do this. If it reports this then it has violated the law.
So, what does this mean?
First, it means that the debt buyer — which is a debt collector under the Fair Debt Collection Practices Act (FDCPA) — has violated the FDCPA which prohibits the reporting of false credit information to the credit reporting agencies (Equifax, Experiian, Innovis, TransUnion, etc).
Second, you can dispute the false credit reporting by following the guidelines we have laid out so that either the debt buyer – known as a “furnisher” under the Fair Credit Reporting Act (FCRA) – or the credit reporting agencies will do the right thing and delete the account. But if they don’t, then they are liable to you for violating the FCRA.
If the debt buyer violates the FDCPA or the FCRA, then it may be appropriate to sue and recover money damages.
So, in closing, the reason that debt buyers who sue and lose can’t continue to report credit information on you? Because it is false and reporting false information on you is against the rules — against the law — and there is a price for breaking the rules. Make sure you make these guys pay that price.