What happens when an original creditor and collection agency both report the same debt on your credit report?
Although there is no technical term, when an original creditor and collector both report you to the credit bureaus for the same debt, this usually referred to as double entry credit reporting, double jeopardy reporting, or double entries on your credit report. Sometimes, there can even be multiple collection accounts for the same debt.
Original creditors and collection agencies are generally permitted to report separate tradelines so long as the reporting is accurate and complete. Sometimes collection agencies will adjust the balance or the date of the delinquency to make this look like a new debt. This can happen when consumers have recently filed bankruptcy and an unscrupulous creditor continues collection efforts after bankruptcy. Learn what you can do when a collector attempts to collect a debt that was discharged in bankruptcy.
You should review your credit report to ensure that old collection accounts do not show up as active or with incorrect balances, or pay status information. Inaccurate collection accounts can harm your credit by making it appear like you have more debt or collection accounts than you actually have. When a collection agency sells, transfers, or no longer services the account, the collection agency should delete the tradeline or update the tradeline by stating it is closed or has been transferred.
You have the right to dispute credit report errors with the credit reporting agencies and other credit bureaus. If the credit bureaus refuse to correct credit report errors, the FCRA permits you to file a lawsuit against the credit bureaus.
You should speak to an experienced credit lawyer if you believe your credit report contains errors, or has double entries that are inaccurate or misleading. Our Michigan credit lawyers can help you dispute credit report errors. Please contact us by filling out our contact form or by calling our office at (313) 415-5559.
TCPA: Automatic Telephone Dialing System or ATDS
TCPA lawyers are familiar with the terms automatic telephone dialing system, or autodialers (ATDS for short). Collection calls or telemarketing calls from autodialers are often referred to as robocalls. But what is an autodialer?
The FCC defines an autodialer as equipment that has the capacity to dial without human intervention. Whether equipment is an ATDS is important for purposes of the Telephone Consumer Protection Act, which prohibits collection calls or telemarketing calls to a cellular telephone without the prior express consent of the person who is called.
An ATDS is “equipment that has the capacity to (a) store or produce telephone numbers to be called, using a random or sequential number generator; and (b) to dial such numbers.” The FCC deems any equipment or software that has the capacity to generate numbers and dial them without human intervention an ATDS, regardless of whether the numbers called are randomly or sequentially generated or come from calling lists.
An FCC Declaratory ruling and Order that became effective on July 10, 2015 rejected the argument that an ATDS should be limited to a system that has the “current” or “present capacity” to dial numbers randomly or sequentially. According to the FCC, an ATDS includes equipment that has the “potential functionality” to dial randomly or sequentially. Under the FCC’s definition, dialing equipment generally meets the TCPA’s autodialer definition, even if it is not presently used for that purpose.
If you are receiving collection calls that include automated messages, the creditor or debt collector is probably using an autodialer. Autodialers are a tool used by debt collectors to make harassing collection calls that cause stress and interrupt your daily life. If you are receiving collection calls on your mobile phone, the TCPA allows you to put an end to these collection calls. If you or someone you know are receiving unwanted collection or marketing calls, contact our office at (313) 415-5559 to speak with a knowledgeable TCPA lawyer.