- When sending collection letters is not enough, can we report each debt to the credit bureau?
- Do we have to wait 120 days?
- What can a collector expect once this action is taken?
Thank you, Marilyn
Yes, you can report debts to the credit bureaus. You have to be a member of a credit bureau or all three. To join a credit bureau visit their website and request information on becoming a member. The 3 credit bureaus are:
You can report a debt as soon as it is past due, if you are the creditor. The best way to use this to your advantage is to send a letter to the debtor telling them that if you don’t receive payment that the debt will be reported to the credit bureau. Sometimes this will prompt someone to pay. If they do not pay and you report the debt, send them a letter telling them it has been reported. Normally you won’t see anything happen until they apply for credit somewhere, and your item is listed on the report, causing them to be denied credit. When that happens, the debtor or the place they are trying to obtain credit will contact you to pay the bill so they can be approved for credit with that company.
During this recession this isn’t always a tool that will work for you, as you are aware in local communities everywhere the bad times are continuing. As you drive down Tenney Mountain Highway and the surrounding towns you will see buildings that were once thriving businesses are now empty and all those people are out of work since there are no jobs to be had. Many of them have run out of unemployment benefits and are trying to sell things they have but there are no buyers.
Your best bet is to try and set up payment plans, and limit your credit risk moving forward. Collecting the money that is owed to you is hard right now, debtors are buying food or paying utilities if they still have a home to live in before paying off debts.