How Do You Report Delinquent Clients To Credit Bureaus?

Question

I have five clients with an estimated outstanding combined balance of $2600.00 USD and we want to collect! I have been working with collection agencies but I am curious, can I send the information to the credit bureaus as a delinquent account? This would obviously add clout and help me collect on the outstanding balances. I believe the statute of limitations is 5 years in Maryland, so I have plent of time to get this done. Any information would be helpful.

Answer 1

The only way you can include a debt on someone's account is to sign up with the reporting agencies. But unless you have a lot of accounts they won't even deal with you.

There are some companies (such as Datafax) that will allow smaller companies access, but their rates are quite high.

They will not accept you sending them information about someone. Before a credit reporting agency even allows someone to be able to post, there is a certification process to prove they are a business and that they deal with credit. Otherwise it would be easy for someone to fraudently post activity to people's account. Therefore any company must go through a verification process before getting an account.

Answer 2

If you are already working with a collection agency, they should be reporting to the credit bureaus. You have to sign up for an account with them which can be a long, tedious process and not worth it if you can get someone else to report the debt.

Answer 3

If all you have coming to you is $2600 and you are paying a collection agency, why would you want to spend more money to list it with the credit bureaus?

Also, I don't know where you got your SOL info for Maryland, because your info is wrong.

3 years for open accounts
3 years for written accounts
4 years for UCC
12 years for Specialty (contract under seal)

Answer 4

Go over their house with a bat.