Jump to content

Insertion of negative listing question...


smurfette in nyc
 Share

Recommended Posts

I am very confused about something--when a derogatory tradeline suddenly shows up on your credit report, are you required to be notified of this by the credit bureau, or by the collection agency?

I know I've previously read something in regards to a "5 day" rule, stating that a consumer must be notified of a negative insertion, but I can't recall if this was in the FCRA, or the FDCPA.

Can anyone here please clarify this? Thanks a lot!

Link to comment
Share on other sites

I've been reading a lot, trying to figure this out, and so far here is what I've found:

FCRA Section 623 (a) (7) Negative Information

According to my Good Credit is Sexy e-book:

"-Creditor, if they fail to notify you in writing within 30 days of inserting negative information into your report.

-Consumer protection afforded by the FCRA (new FACTA rules)

-$1,000 for violation."

According to the actual FCRA:

(7) NEGATIVE INFORMATION-

(A) NOTICE TO CONSUMER REQUIRED-

(i) IN GENERAL- If any financial institution that extends credit and regularly and in the ordinary course of business furnishes information to a consumer reporting agency described in section 603(p) furnishes negative information to such an agency regarding credit extended to a customer, the financial institution shall provide a notice of such furnishing of negative information, in writing, to the customer.

My question is this: Does this only apply to an OC, or does this apply to a CA as well??:confused:

Link to comment
Share on other sites

Here is my understanding -- the FCRA section you cite applies only to the OC. The disclosure requirement is typically satisfied with special wording on the monthly statement advising you of the potential negative consequence of delinquency.

The key words are:

If any financial institution that extends credit and regularly and in the ordinary course of business furnishes information to a consumer reporting agency described in section 603(p) furnishes negative information to such an agency regarding credit extended to a customer, the financial institution shall provide a notice of such furnishing of negative information, in writing, to the customer.

A CA or debt buyer is not a financial institution and does not normally extend credit.

Make sense?

Link to comment
Share on other sites

Here is my understanding -- the FCRA section you cite applies only to the OC. The disclosure requirement is typically satisfied with special wording on the monthly statement advising you of the potential negative consequence of delinquency.

The key words are:

If any financial institution that extends credit and regularly and in the ordinary course of business furnishes information to a consumer reporting agency described in section 603(p) furnishes negative information to such an agency regarding credit extended to a customer, the financial institution shall provide a notice of such furnishing of negative information, in writing, to the customer.

A CA or debt buyer is not a financial institution and does not normally extend credit.

Make sense?

Good answer

Link to comment
Share on other sites

A CA or debt buyer is not a financial institution and does not normally extend credit.

Make sense?

Thank you very much Debt Guy! Yes, your explanation makes sense. I just want to point out that while searching many posts made on this forum, I noticed a letter that was being discussed in a recent thread, which was directed at a CA, and which used "notification of negative listings":

http://www.debt-consolidation-credit-repair-service.com/forums/showthread.php?t=284682&highlight=days+insertion+negative+listing

"I recently pulled my credit report from TransUnion and Experian and to my amazement, saw that you placed a collection on my report on 12/2007. I immediately disputed this information TransUnion and Experian and the results of the investigation came back "verified". Not only do I not owe this amount, but according to the FCRA, as amended by the FACTA act, you are required to notify me of the insertion of negative listings."

Based on what I am reading in the above letter, I am assuming that CA's do have to notify a consumer of the insertion of negative listings. Anyone else here agree or disagree?

Link to comment
Share on other sites

No, creditors or CAs do not have to notifiy of negative information. Do they have to notify you of positive information? Also, you know if you are not paying your bills, so you should expect this to be reflected on your CR.

As far as the letter, I think the writer must have been refering to reinsertion of the TL after it has been deleted. Or, the writer was just taking a shot in the dark to see if the CA would delete.

Link to comment
Share on other sites

Guest BucFan
Thank you very much Debt Guy! Yes, your explanation makes sense. I just want to point out that while searching many posts made on this forum, I noticed a letter that was being discussed in a recent thread, which was directed at a CA, and which used "notification of negative listings":

http://www.debt-consolidation-credit-repair-service.com/forums/showthread.php?t=284682&highlight=days+insertion+negative+listing

"I recently pulled my credit report from TransUnion and Experian and to my amazement, saw that you placed a collection on my report on 12/2007. I immediately disputed this information TransUnion and Experian and the results of the investigation came back "verified". Not only do I not owe this amount, but according to the FCRA, as amended by the FACTA act, you are required to notify me of the insertion of negative listings."

Based on what I am reading in the above letter, I am assuming that CA's do have to notify a consumer of the insertion of negative listings. Anyone else here agree or disagree?

RJM is a debt buyer, placing them (I believe) under similar rules as the OC under FACTA (§ 623. (a)(8). So, that at least gives us the right to demand an investigation, even if they have sent a dunning letter. (Check for yourself though, I'm a newb)

But, honestly, if they do or don't have to send you a dunning letter... doesn't really matter.

From what I understand, all the CA, OC, or whomever, need to do in court is show that they have set in place a procedure to notify their debtors.

Link to comment
Share on other sites

I've never claimed to be a FACTA/FCRA expert. But, sounds to me like you guys are confusing apples, oranges, billy goats and mongooses. I think the issues of "initial notification" and "notification of reinsertion" are different things and governed in different ways.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.