Why Must The Debt Collector Take Debt Off My Credit Report After I Win The Collection Case

“Why Must The Debt Collector Take Debt Off My Credit Report After I Win The Collection Case?”

Hundreds of collection lawsuits are filed by debt collectors (debt buyers) such as LVNV, Midland, Portfolio, etc. but most (if not all) are filed without any proof so it is common for folks to win their collection case.

I assume this happened with your collection case since you are reading this.  Two important points before we get into the details:

First, congrats!  You stayed strong and fought and you won.

Second, the debt collector that sued you must remove its reporting from your credit report.

Let’s talk about why the debt collector must do this and why they hate to do it.

They would prefer to leave it on your credit report — they “park” it on your report. Then when you need credit, or a job promotion, or a security clearance, they figure you can blackmailed into paying them to remove the false entry off your credit report.

Here’s how it goes:

Well, we know you think you don’t owe it but you really do.  What the judge says doesn’t matter.  But because we are a nice company, you can pay us 50% of the amount owed and we’ll delete it from your credit report.  Let’s get your banking information now.

But it should have never been on your credit report in the first place as you don’t owe the debt when you win your Alabama collection suit.  That’s what winning your case normally means.

So if you don’t owe the debt, how can it be on your credit report?

When does a debt collector violate the law in credit reporting a debt you don’t owe?

Now the debt collectors will take it off AFTER you win — this is because we have sued them so much on this issue that they finally changed their policies. That’s great and that’s nice.

But what about when it was on your credit report even before you win? The year or two this debt collector has been telling the world that you owe the debt even when you don’t?

If you never owed it then it NEVER should have been on your credit reports.  In our judgment, this violates the FDCPA (Fair Debt Collection Practices Act) and other laws.

Our simple solution . . . .

We have filed dozens and dozens of federal court lawsuits on this very issue — we sue the debt collector for false credit reporting (and other items).  They hate this but it is a valid claim.  We sue for money damages.

My advice to debt collectors years ago on credit reporting . . . .and why I was never invited back to speak again to this group.

Years ago I gave a presentation to a room full of debt collection attorneys about credit reporting.  I asked if a knife was a dangerous weapon or a wonderful tool.

Obviously, it can be either one.

I made the point the same is true when a debt collector credit reports.  It can be a powerful tool (forces folks to pay the debt) but if you report falsely, that tool turns in your hand to become a dangerous weapon.  My advice to that room full of collectors was to be very careful with credit reporting as when you do false credit reporting, you get sued.

I don’t think any listened.

Debt collectors tend to view credit reporting with a casual attitude that it is all “upside” with no “downside” — no risk.  But the laws don’t agree.

Do false credit reporting and expect to be hammered in federal court.

OK, I’ll step off my soapbox now . . . . 🙂

If you have won your collection suit and you want to know our thoughts on your options, call us at 205-879-2447 or contact us through our website.

John G. Watts
Watts & Herring, LLC
Birmingham and Madison Offices in Alabama

(Representing consumers all over Alabama).