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can they report like this?


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I have been renting and renting-to-own band instruments for my teenagers from this company going on 6 years now. I have been running a couple of weeks behind on my payments but have always kept in touch with the company, calling them each month, letting them know when I will send money in and they have always just been sugary sweet about it saying "thats fine, if your not able to send it in that day just give us a call back and let us know". They have been so nice about it I never realized it was a problem.

Then -BAM- I get an invoice in the mail today saying my account is past due and "is affecting my credit score". WTH?!?! So I call up there to find out exactly what is going on and of course the "credit manager" was out sick. They pass me around to several different people finally ended up with the "general manager". After giving me the run around for awhile he finally says its been reported to TU. I just about completely lost it. I told him they could'nt report negative info without giving me notice, that its a violation of the FCRA. He said "whatever".

Finally he said a little later I "should have" received a letter letting me know they were going to start reporting about 6 weeks ago, well I did'nt. And I have 2 accounts with them so it seems kinda suspicious to me that I did'nt receive a letter for either account. In fact the statement I received today did'nt say negative info has been reported just that "its affecting my credit score".

I realize I am late but in the past I have been 4 months late and they have always been so sweet about it all. The thing that makes me mad is they reported without telling me. After all the work I have done on my reports if its all blown over 1- 60-day- $35 late payment I think I am just going to throw in the towel. Is there anything I can do about this?

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I told him they could'nt report negative info without giving me notice, that its a violation of the FCRA.

Can you point out the particular statute on this? Did the rental agreement mention reporting of deliquency?

Their letter said "its affecting my credit score" can be interpreted that they are reporting it to the CRAs. After all, it would have to appear on your CR in order for it to affect your score.

Also, since the payments were technically late, they could report them as late even if you were calling each month. You've been really honest and open with them. But that doesn't mean they can't turn the bill over to a CA.

You could try doing a goodwill letter to get the lates removed after you've brought the account current.

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There is nothing in the rental agreement about credit reporting. The specific statute I am referring to is FCRA section 623.(7).

That particular section, from the way I interpret it, is speaking of "financial institutions"



(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.

(ii) NOTICE EFFECTIVE FOR SUBSEQUENT SUBMISSIONS- After providing such notice, the financial institution may submit additional negative information to a consumer reporting agency described in section 603(p) with respect to the same transaction, extension of credit, account, or customer without providing additional notice to the customer.

(G) DEFINITIONS- For purposes of this paragraph, the following definitions shall apply:

(i) NEGATIVE INFORMATION- The term `negative information' means information concerning a customer's delinquencies, late payments, insolvency, or any form of default.

(ii) CUSTOMER; FINANCIAL INSTITUTION- The terms `customer' and `financial institution' have the same meanings as in section 509 Public Law 106-102.

If the company in which you are dealing with, is not a financial institution, then, according to my interpretation of this section of 623, I don't believe this would apply in your situation.

Robert? Methuss? Any input here?

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