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What's the earliest a CA can sent in a lineitem to the CRAs?


Drake Savory
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I don't know why I thought of this but it seems to me that once a CA or JDB gets your account, they cannot send in anything to CRAs for at least 30 days.  They have to write the first dunning letter and then wait at least 30 days for the legally mandated DV period so it seems to me that they have to wait from date they send letter (technically the day you receive but they don't know when you get it) + 30 days.  If you do send them a DV letter, then they can't send anything to the CRA until they validate. 

 

So far, anything wrong with that?

 

So can they start reporting immediately after this time period is up?

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I don't know why I thought of this but it seems to me that once a CA or JDB gets your account, they cannot send in anything to CRAs for at least 30 days.  They have to write the first dunning letter and then wait at least 30 days for the legally mandated DV period so it seems to me that they have to wait from date they send letter (technically the day you receive but they don't know when you get it) + 30 days.  If you do send them a DV letter, then they can't send anything to the CRA until they validate. 

 

So far, anything wrong with that?

 

So can they start reporting immediately after this time period is up?

 

ALL of it is wrong.  There is NO requirement that they wait 30 days to report the trade line once they buy or receive the account for collections.  If you send a DV letter they must cease COLLECTION activities until they validate.  Reporting the trade line is not collection activity.  At least the courts are divided on that issue and until someone eventually appeals it to the Supreme Court who issues a ruling on the matter it is up for debate.   Collection activity is generally viewed as communication with YOU directly by the courts.  The CRAs are merely informed of a status of an account which you are responsible for.

 

Not knowing how a court would see their reporting the account you should plan that they can report a negative trade line immediately upon having legal responsibility for it. 

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