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What are my rights regarding false reporting by a collection agency?

What are my rights regarding false reporting by a collection agency?

Full question:

I have a collection company who purgered themselves to get a judgement against me. They report negatively to the credit people everytime my credit gets good. What are my rights?

Category: Debts and Credit
Date: 04/07/2025
State: Colorado

Answer:

A collection agency's actions are governed by federal and state laws. Within five days of contacting you, they must send a written notice that includes the total amount owed and the name of the original creditor. This notice should inform you that you have thirty days to dispute the debt in writing or request verification of the amount.

If you dispute the debt, the collection agency must stop its collection efforts until it verifies the debt and provides you with the information requested. If the agency violates these laws, you can report them to the Federal Trade Commission or file a lawsuit against them. You typically have one year from the violation to file a lawsuit, which can allow you to recover actual damages, up to $1,000 in an individual case or $5,000 in a class-action lawsuit, along with attorney fees.

If you find inaccuracies on your credit report, contact both the credit reporting agency and the company that reported the information. Under the Fair Credit Reporting Act, the information provider must investigate your claim and correct any inaccuracies found. If your dispute isn't resolved, you can request that your statement about the dispute be added to your credit file.

For more information, refer to the Fair Debt Collection Practices Act (15 USC 1692g), which outlines your rights regarding debt validation.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

How much will my credit score go up when a judgement is removed?

The increase in your credit score after a judgment is removed can vary widely. Factors like your overall credit history and the presence of other negative items will influence the score. Generally, removing a judgment can lead to a noticeable improvement, especially if it was a significant negative mark. However, there’s no guaranteed amount of points your score will increase. It's best to monitor your credit report regularly to see the impact.

Can a judgement be removed from a credit report?

Yes, a judgment can be removed from your credit report under certain circumstances. If the judgment was paid, you can request that it be marked as satisfied. If it was entered in error or is inaccurate, you can dispute it with the credit reporting agency. Additionally, judgments may automatically fall off your report after a certain period, typically seven years from the date of entry.

Can you get judgements removed from your credit report?

Yes, you can get judgments removed from your credit report. To do this, you can dispute inaccuracies with the credit reporting agency or request that a paid judgment be marked as satisfied. If the judgment is old or no longer valid, it may also fall off your report automatically after seven years. Always check your credit report for errors and take action accordingly.

What is the 777 rule with debt collectors?

The '777 rule' is not a formal legal term but often refers to a guideline suggesting that debt collectors should not contact you more than seven times in a seven-day period regarding the same debt. This is to prevent harassment. Under the Fair Debt Collection Practices Act, collectors must adhere to fair practices. If you feel harassed, you can file a complaint with the Federal Trade Commission.