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CRA Reporting Business Debt


tunheim
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Can a CRA report a business judgement debt on my personal Credit Report?

The collection Attorney told me in a letter that the debt above is a commercial debt and therefore they don't have to abide by the FDCPA, FCRA etc.

If that is true why is it on my report?

Thanks

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Its the catch 22 of personally guranteed business debt. Its not covered by the FDCPA (because it was used for business) but its on your personal reports because you personally guaranteed it.

I did have some success scaring away collectors by maintaining that since they put it on my report, it was personal and therefore covered by the FDCPA...but...that was only because the collectors didn't know any better.

We wound up doing a personal BK to protect us from the business debt...

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Credit reports are consumer reports for household use. It's part of the definition in the statute. They don't have to follow the FDCPA, but they do need to NOT report on a consumer report.

Like I said...its a catch 22...a "personally guranteed" business debt becomes a personal debt for reporting purposes.

(If a business that you own is incorporated, then the business is a separate enitity, and the business' debts do not affect you personally. However, if you personally gurantee the debts of that business, and the business defaults...those debts becomes yours. That's what the personal gurantee means.)

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