Double-Reporting
Some debt collectors may try to report a debt on a consumer’s credit report twice. Doing so can make a single bad debt hurt twice as much. Though some consumers may have multiple debts owed to the same debt collector or creditor (which can be reported separately), each debt can only be reported one time.
In the following example, notice how the information on the following two accounts, which appeared next to each other on a consumer’s credit report, have nearly identical information:
In the following example, notice how the information on the following two accounts, which appeared next to each other on a consumer’s credit report, have nearly identical information:
Notice that the payment history, the date opened, the high balance, and the last payment are all the same. The account numbers, which are redacted here, were also identical. While there are a few discrepancies between the two accounts— one reports a “Date Paid” and a “Credit Limit” while the other does not, and that the accounts report a slightly different “Date Closed” — it is clear from all the other indications that this is the same account reported twice.
Duplicating account information like this may be a violation of the Fair Debt Collection Practices Act or the Fair Credit Reporting Act. If you see any activity like this, please discuss the possibility of hiring a consumer protection attorney with your client.
A NOTE FOR TRI-MERGED CREDIT REPORTS
When reviewing a tri-merged credit report— credit reports that combine the results from Trans Union, Equifax, and Experian into a single document— a single debt may appear as two or even three separate entries. This is a common effect of tri-merged reports, which may grab the same account information from all three bureaus but not register it as the same account, resulting in it being split on the tri-merged report to look like it is being reported multiple times. A closer inspection may show that each repetition of the account has a different credit bureau as each source, and a debt seemingly reported three times may say “EX” for one, “EQ” for the second, and “TU” for the third. The failure to recognize the accounts as one in the same is a flaw in the tri-merging company’s software, but it does not affect your client’s credit and is not illegal.
Duplicating account information like this may be a violation of the Fair Debt Collection Practices Act or the Fair Credit Reporting Act. If you see any activity like this, please discuss the possibility of hiring a consumer protection attorney with your client.
A NOTE FOR TRI-MERGED CREDIT REPORTS
When reviewing a tri-merged credit report— credit reports that combine the results from Trans Union, Equifax, and Experian into a single document— a single debt may appear as two or even three separate entries. This is a common effect of tri-merged reports, which may grab the same account information from all three bureaus but not register it as the same account, resulting in it being split on the tri-merged report to look like it is being reported multiple times. A closer inspection may show that each repetition of the account has a different credit bureau as each source, and a debt seemingly reported three times may say “EX” for one, “EQ” for the second, and “TU” for the third. The failure to recognize the accounts as one in the same is a flaw in the tri-merging company’s software, but it does not affect your client’s credit and is not illegal.