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Is creditor required to report paid acct to CRA's???


stevem5000
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Several years ago I defaulted on a Sears credit card...they later sold it to Sherman, they got a local law firm to sue me and I had a judgement placed against me...

Now a few years later, I had my lawyer cut a deal with the local Sherman lawyers...

I advised my lawyer that I want a letter from the Sherman lawyers saying they would report the paid account to all 3 CRA's...

My lawyer told me that the Sherman atty said they don't have to give me a letter as they were required under law to report the paid debt...

I don't think this is correct and my lawyer, who doesn't do credit law, doesn't know...

The satisfied judgement will be reported...

But the question is, are they requried to report to the CRA's a paid debt???

Is there any provision in either the FDCPA or the FCRA that requires this???

Can I insist on a letter that they will report the debt as "Paid as Agreed?"

My lawyer is going to deliver the check to the Sherman lawyer on Tuesday...

Thanx

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Here's the section of the FCRA that covers your question:

You may want to print this for your lawyer (in case he sees something in it he can use to your advantage).

§ 623. Responsibilities of furnishers of information to consumer reporting agencies [15 U.S.C. § 1681s-2]

(a) Duty of furnishers of information to provide accurate information.

(1) Prohibition.

(A) Reporting information with actual knowledge of errors. A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or consciously avoids knowing that the information is inaccurate.

(B) Reporting information after notice and confirmation of errors. A person shall not furnish information relating to a consumer to any consumer reporting agency if

(i) the person has been notified by the consumer, at the address specified by the person for such notices, that specific information is inaccurate; and

(ii) the information is, in fact, inaccurate.

© No address requirement. A person who clearly and conspicuously specifies to the consumer an address for notices referred to in subparagraph (B) shall not be subject to subparagraph (A); however, nothing in subparagraph (B) shall require a person to specify such an address.

(2) Duty to correct and update information. A person who

(A) regularly and in the ordinary course of business furnishes information to one or more consumer reporting agencies about the person's transactions or experiences with any consumer; and

(B) has furnished to a consumer reporting agency information that the person determines is not complete or accurate,

shall promptly notify the consumer reporting agency of that determination and provide to the agency any corrections to that information, or any additional information, that is necessary to make the information provided by the person to the agency complete and accurate, and shall not thereafter furnish to the agency any of the information that remains not complete or accurate.

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