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Is it legal for a collection agency to list an account on my credit report if they're not licensed in my state? I thought putting something on a credit report was concidered a 'collection activity.'

The debt was incurred in a state where they are licensed, but I live in a state where they're not.

Thanks!

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Their license allows them to "perform collection activities" (ie; call you, send you letters, etc..) in those states that do require licensing. It doesn't allow/restrict someone from reporting to the CRAs.

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  • 1 month later...

You really have to check your state laws carefully regarding interstate collection activity. Some states have clauses that say a CA unlicensed in that state can collect as long as they have no clients within that state (how they prove that is beyond me). So it may be perfectly legal for them to be collecting.

If the laws flat-out forbid unlicensed collections, then they had no business even accepting the collection (knowing full-well they're aren't licensed).... unless of course they obtained and entered the information while you were still in that other state where the debt occurred.

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Placing the tradeline on your report is a collection activity, so no, they can't--if they truly can't perform collection activities in your state.

The problem you run into is that's not actionable by a consumer...that's a state action (i.e. your state attorney general)...and odds are they won't even bother with it.

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Well I am having this exact problem here in my situation

However. the CA wont even send me a letter or call me because they KNOW I live in a state they cant collect in.

Now in my opinoin.. I never got a dunning letter or a time to dispute because they couldnt mail me here.

They are the ones who informed me of this..

Reporting to a CRA IS a communication by definition and I think that is continued collection activity.

They also did not list the account in dispute as required by the FCRA... another violation

I sent them a letter today demanding deletion of the TL from all 3 bureaus and the UDF form that proves this was done.

if I dont hear from them by May 9... I hand it to the lawyer and they really deal with it then.

Oh.. yeah.. and the collection is for 23 dollars!!!!

I offered a full pay for delete but they say thats illegal... what morons!!!

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One other note of the particular twists in State Laws regarding licensing. Some of the state laws require licensing only when collecting for "someone other than themselves". So JDBs do not need a license. In my case Asset falls under the FDCPA but not the state Collection Agencies Act because of that.

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