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How Do You Report Someone to Credit Agency?

By Nathaniel Hutchinson Business and Financial Expert


If someone owes you money, there are a couple of proven ways you can approach the situation. Unfortunately, in most cases, if you're an individual or small business owner, you can't directly report someone to a credit agency.

Credit agencies are regulated companies who work with businesses that pay a fee for the right to input and access individual consumer data. Even if an individual was willing and could afford to pay, he or she isn't likely to meet the qualifications required by Federal laws. Typically, larger companies don't have the time or resources required to sue every single person that owes them money; and the power to negatively impact each consumer's credit rating helps them do business on a larger scale.

What you can do

Although you can't directly report someone to a credit agency, you can go about it in a roundabout way. Turn the bill over to an accredited collection agency, and it will do it for you. It will also work on your behalf to collect the debt; however, you should expect to forfeit a percentage of whatever amount the agency is able to collect. For a list of reputable collection agencies in your area, visit the The Association of Credit and Collection Professionals.

What else you can do

If you have the time and wherewithal, you can also take the debtor to court. If you acquire a judgment against the debtor, the debt will eventually end up on his or her report. You may also be able to garnish wages in certain situations.

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