Do You Have the Credit Report Woes?

We previously blogged about the importance of reviewing one’s credit report to help protect against credit errors and identify theft.   In addition to reviewing credit reports at regular intervals, consumers who find themselves the subject of debt collection may want to check their credit reports more frequently to ensure accuracy.   Under certain circumstances, debt collectors are permitted to report consumer debs to credit reporting agencies.   However, because a debt collector can be a separate entity from the original creditor, the same debt may be listed several times on a consumer’s credit report.   This problem can be compounded by the fact that it is not uncommon for one debt collector to sell a consumer’s debt to another debt collector; in fact, some debts may even be sold multiple times.   If a new debt collector reports the same debt each time it is sold, a single debt may be reported multiple times on a consumer’s credit report.   This can cause the report to appear misleading, giving the implication that numerous debts are owed to different companies when in reality, the same debt is being reported over and over.   Thus, while it is important for all consumers to periodically review their credit reports, those who are the subject of debt collection may want to review their reports more often to ensure reporting accuracy.   -Meredith Phillips (205) 912-8244

-Blankenship Harrelson, LLP

www.bhattorneysllp.com