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CA reporting to TL "Grace Period" - required by law or not? - HELP

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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 FCRA 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 Federal Law?

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


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I choose #3.

It's basically coercion and could even be considered overshadowing, but consider this:

The CA's and JDB's understand that, a lot of the time, the reason they don't get paid is because consumers know that a having a collection updated to a "paid collection" doesn't increase their score more than maybe three points (if even that, since the date of last payment is also updated.)

So, they try to figure out win-win situation for both parties without ever involving thr CRA's in the first palce. They are implying that of you pay, they will never report. But some CA's will then turn around and report a "paid collection" after they get their money just to be mean.

This is why, when you get a letter like that, and you are willing to pay, you need to follow up in writing, getting them to agree to never report in the first place and you will pay.

Make sure you admit nothing, deny everything, and make it clear that you are only paying to settle the matter while avoiding damage to your credit report. Basically giving in to their extortion scheme, or offering them a bribe, however you want to see it.

There is no law requiring them to report anything, and their basic agreements with the CRA's, that the info they report cannot be used as a bargaining tool, does not go into effect until they intitally report something. The CRA's can't force them to report every account they get.

Making a deal like this before anything is reported causes no consequences for you, nor the JDB with the CRA's. Bear in mind though, that they are probably only making this offer because they can't really prove the debt in court or it is SOL.

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