CA gives 'grace' period before reporting to CRAs...required or not?

[GucciMark]

Hi,

Of all the Collections I have had in my life (and I hate to admit too many).

I don’t ever recall a CA placing the TL on my CR immediately.

I was always told in the letter, you have x days to pay BEFORE this account is reported to the CRAs.

Now, I’ve been brushing up on the FDCPA and I cannot find any

reference that requires them to give this ‘grace’ period.

Maybe I’m just missing it?

So my questions are:

1. Are they required by law to offer this ‘grace’ period?

2. If so, is it a State law or a Fed. Law?

3. Do they offer that as an incentive to pay?

Thanks.

[CantCU]

I don't recall any CA ever giving me any grace period. In fact, recently I had one who did a hard pull, reported it the CRA's THEN sent me a dunning letter. When DV'd, they deleted immediately. (Don't you just love alerts??)

But those that do may claim that they do it because they are a member of the BBB or that association for collection agencies (forget the name). Or perhaps they are just giving you time to get your DV to them so they don't have to take it back off!

[MadinKS]

IMO, and I'm not a lawyer, the grace period should fall under initial communication. What I mean is, if they don't give you the 30 days from first dunning to dispute and automatically report, that is a collection activity, and IMO illegal. I may be construing the law to help us out way more than it's supposed to, but how can they report the debt before finding out it's even you?

Maybe this is a law issue and we should move this to the "Is there a lawyer in the house" to get the legalese skinny.

[retmar]

There is no actual guidline written that I know of regarding this question.

I can only assume that a CA will report on the next reporting cycle after receipt of assignment, or debt, if purchased. Such as, they receive the assignment on the 15th, and report on the 14th. Therefore, this will be reported the 14th of the following month.

The same applies as to the minimum amount reported. There has been many questions on this, when, actually, there is no written guidline. Some have found amounts as low as $5.00 while others have found nothing less than $25.00, while also having other items in collections in an amount less than that. Go figure.

I won't say that some do wait until the 30 day window has expired, because there just might be some that do. I've even heard people say they paid on the day they received the initial communication because it was a simple error on their part, but, on their CR's, they find a paid collection. If we can ever figure out the 5 "w's" of a CA, we'll be miracle workers.

[GucciMark]

I think a e-mail and FAX to all my State Law Makers is in order.

This grace period needs to be a law.

I have an Internet Fax service which is awesome, I can fax 1000 pieces

a month for $12.95 metrohispeed.com,... referral - guccimark

Love to be a little bit of an activist, especially when it literally only takes me a few seconds to reach all of them.

[retmar]

Go for it!

Everyone needs to understand that this country is run by corporations, not the consumer. Think about it.

When they changed the BK laws, who got screwed? We did. Why? Because the creditors were not collecting on their charged off debt, and blamed all on us. When, in fact, too many BK's were filed becuase the consumer, for whatever reason to cause delinquency, were fed up with the illegal threats and actions of CA/JDB's.

Move on to the FACTA. This was created to assist in curbing ID theft. Thus, the consumer was to be notified in writing when negative info may be, or will be, reported. How is it helping the victim when the victim never finds out until the CA/JDB contacts them at least 6 months later, well after the damage has been done. Then they add safeguards for the creditor, not the consumer. Total waste of time and money. Even the comments in the Board of Governors for the FRS "papers", they all protect the creditor.