Credit Reporting Violations: Know Your Rights"

A collection company can commit several violations when reporting a repossession on your credit report, such as:

  1. Inaccurate Reporting: If the repossession details (e.g., amount owed, dates, account status) are incorrect or inconsistent with the original creditor's records, this is a violation under the Fair Credit Reporting Act (FCRA).

  2. Failure to Notify: Under the FCRA, collection agencies must notify you within 30 days of reporting a repossession. Failing to notify you is a violation.

  3. Re-Aging Debt: If the collection company changes the date of the debt to make it appear newer, this is illegal under the FCRA. The original date of delinquency should remain the same.

  4. Reporting Without Validation: If you dispute the debt, the collection company must validate it. If they fail to validate the repossession and continue reporting, they are violating the law.

  5. Reporting Debts Not Owed: If the repossession has been settled or paid, and they still report it as unpaid, this is a violation.

  6. Duplicate Reporting: Sometimes a collection company may report the same repossession multiple times, creating duplicate entries, which is also a violation.

Any of these violations can be disputed and, if proven, corrected on your credit report.

WHICH VIOLATION A COLLECTION COMPANY CAN MAKE REPORTING A MEDICAL BILL ON YOUR CREDIT REPORT

When a collection company reports a medical bill on your credit report, they can commit several violations, such as:

  1. Inaccurate Reporting: If the collection company reports incorrect information regarding the amount owed, account status, or dates, it violates the Fair Credit Reporting Act (FCRA).

  2. Failure to Provide Validation: If you dispute a medical bill, the collection company must validate the debt. If they continue to report the debt without providing proof, it's a violation of the FCRA.

  3. Reporting Too Soon: Under the 180-day grace period rule established by the National Consumer Assistance Plan, collection agencies must wait 180 days after the bill's delinquency before reporting medical debt to allow time for insurance payments or negotiations.

  4. Failure to Remove Paid or Settled Debts: If the medical debt has been paid off or settled and is still reported as unpaid, this is a violation. Paid medical collections should be removed from credit reports.

  5. Reporting Debt That Should Be Covered by Insurance: If the debt is supposed to be covered by insurance but hasn't been properly processed yet, reporting it can be a violation.

  6. HIPAA Violations: While reporting medical debt is legal, disclosing sensitive medical information, like specific treatments, in the process of collecting or reporting, would be a violation of the Health Insurance Portability and Accountability Act (HIPAA).

If any of these violations occur, you can dispute the information and potentially have it corrected or removed from your credit report.