The CFPB should require debt sellers to contact the debtor and inform them the debt has been sold. Additionally, ALL pertinent information must be given to the debtor to eliminate any confusion. Furthermore, the seller of the debt must be required and enforced to annotate the debtors credit report with the sale to help eliminate confusion and in a way to not increase the bad debt. Essentially, debts that are sold sometimes appear as two seperate debts on a consumers report which increases the penalty of having bad debt. A consumer should not be penalized twice for 1 debt.
The CFPB should require debt sellers to contact the debtor and inform them the debt has been sold. Additionally, ALL pertinent information must be given to the debtor to eliminate any confusion. Furthermore, the seller of the debt must be required and enforced to annotate the debtors credit report with the sale to help eliminate confusion and in a way to not increase the bad debt. Essentially, debts that are sold sometimes appear as two seperate debts on a consumers report which increases the penalty of having bad debt. A consumer should not be penalized twice for 1 debt.
I strongly endore drose977's response. Currently, debt collection agencies can sell debt without proper validation. Or they can sell the debt if a consumer disputes the debt and the agency can't product the proper validation. These things should not be allowed and are very detrimental to the consumer. Consumers should be protected above collectors and other agencies as they, typically, have far less resources to fight inaccurate information. Additionally, the inaccurate information adversely effects consumers more than any other group in these situations.
Collectors should not be allowed to report a debt as 30 days late if the debt isn't 30 days late. The law should include stiff enforcable penalities to deter collectors from pre-dating debt. These rules should apply for any debt reported late at any time, not just the first 30 days.
Consumers should not be allowed to dispute a debt using identity theft as a reason without proof as well. Otherwise some consumers will "game" the system and make false disputes.
I currently have an alias on my Credit report that I have NEVER gone by. I've disputed this serveral times and I can't get this alias and the related debt off my report. As such I want federal laws that REQUIRE an agency to produce some paperwork ,legal document that proves a consumer used that alias on a credit application/paperwork. When disputed with a CRA they should be requesting this information from the agencies as well. CRA's should be the neutral parties and be the enforcing agencies on both sides. CRA's should be mandated to report accurate information and be responsible to gather the accurate information. currently they are warehouses of bad information that err on the side of collectors. Consumers do not have a reliable agency fighting for their rights. without enforcement Federal laws equate to a bunch of useless words on a paper.
my in-laws had the same issue with BoA. They paid their mortgate EARLY every month and still were reported as late every month. This is tragic and ruined their credit. When these things happen it takes years for the credit to br repaired even though a collector reported the information falsely, incurracately, and repeatedly. BoA should be penalized HEAVILY for these infractions otherwise they just ignore consumers.
If federal rules can be ignored by local/municipal/state laws then the federal laws are irrelevant. Consumer credit is recognized in all 50 states and internationally. As such these laws should be enforced by each state and lower courts and states and such should not be able to make laws that ignore of superseed federal law.
Once a debt has reached the end of its statue of limitations is should be removed from the consumer credit report. However, collectors use the law to refresh old debts so they effectively never leave a report. If a collector can't sue to retrieve the debt it has no business on a consumer report.
Sertas
1
The CFPB should require debt sellers to contact the debtor and inform them the debt has been sold. Additionally, ALL pertinent information must be given to the debtor to eliminate any confusion. Furthermore, the seller of the debt must be required and enforced to annotate the debtors credit report with the sale to help eliminate confusion and in a way to not increase the bad debt. Essentially, debts that are sold sometimes appear as two seperate debts on a consumers report which increases the penalty of having bad debt. A consumer should not be penalized twice for 1 debt.
View this comment in the discussion thread
Sertas
2
The CFPB should require debt sellers to contact the debtor and inform them the debt has been sold. Additionally, ALL pertinent information must be given to the debtor to eliminate any confusion. Furthermore, the seller of the debt must be required and enforced to annotate the debtors credit report with the sale to help eliminate confusion and in a way to not increase the bad debt. Essentially, debts that are sold sometimes appear as two seperate debts on a consumers report which increases the penalty of having bad debt. A consumer should not be penalized twice for 1 debt.
View this comment in the discussion thread
Sertas
3
I strongly endore drose977's response. Currently, debt collection agencies can sell debt without proper validation. Or they can sell the debt if a consumer disputes the debt and the agency can't product the proper validation. These things should not be allowed and are very detrimental to the consumer. Consumers should be protected above collectors and other agencies as they, typically, have far less resources to fight inaccurate information. Additionally, the inaccurate information adversely effects consumers more than any other group in these situations. Collectors should not be allowed to report a debt as 30 days late if the debt isn't 30 days late. The law should include stiff enforcable penalities to deter collectors from pre-dating debt. These rules should apply for any debt reported late at any time, not just the first 30 days.
View this comment in the discussion thread
Sertas
4
Consumers should not be allowed to dispute a debt using identity theft as a reason without proof as well. Otherwise some consumers will "game" the system and make false disputes.
View this comment in the discussion thread
Sertas
5
I currently have an alias on my Credit report that I have NEVER gone by. I've disputed this serveral times and I can't get this alias and the related debt off my report. As such I want federal laws that REQUIRE an agency to produce some paperwork ,legal document that proves a consumer used that alias on a credit application/paperwork. When disputed with a CRA they should be requesting this information from the agencies as well. CRA's should be the neutral parties and be the enforcing agencies on both sides. CRA's should be mandated to report accurate information and be responsible to gather the accurate information. currently they are warehouses of bad information that err on the side of collectors. Consumers do not have a reliable agency fighting for their rights. without enforcement Federal laws equate to a bunch of useless words on a paper.
View this comment in the discussion thread
Sertas
6
my in-laws had the same issue with BoA. They paid their mortgate EARLY every month and still were reported as late every month. This is tragic and ruined their credit. When these things happen it takes years for the credit to br repaired even though a collector reported the information falsely, incurracately, and repeatedly. BoA should be penalized HEAVILY for these infractions otherwise they just ignore consumers.
View this comment in the discussion thread
Sertas
7
If federal rules can be ignored by local/municipal/state laws then the federal laws are irrelevant. Consumer credit is recognized in all 50 states and internationally. As such these laws should be enforced by each state and lower courts and states and such should not be able to make laws that ignore of superseed federal law.
View this comment in the discussion thread
Sertas
8
Once a debt has reached the end of its statue of limitations is should be removed from the consumer credit report. However, collectors use the law to refresh old debts so they effectively never leave a report. If a collector can't sue to retrieve the debt it has no business on a consumer report.
View this comment in the discussion thread