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Collection Agency Can't Report to CBs for 90 Days? Legit?

New Contributor

Collection Agency Can't Report to CBs for 90 Days? Legit?

I moved out of an apartment complex a few months ago and the management company hit me with some fees for cleaning, etc. that I have been disputing since moving out. Long story short, they sent me to collections last week. I found out when I suddenly saw a hard inquiry hit my Experian by a company called "Fair Credit and Outsourcing (FCO)".


Not wanting to risk any collections showing on my report, I called them and asked to just PIF if they could send me a document claiming it wouldn't hit my report. I was told my account had NOT yet been reported and they had only done an analysis inquiry (?), and if I PIF'd they would send me a letter confirming it had not-- and would not-- be reported. They also said "Your account is not eligible to be reported to the credit bureaus until April 10, 2018".

I've never heard of this.. is this a law? The rep stated it was "regulation" but didn't elaborate. I just PIF'd to not risk damaging my credit for 7 years and I'll take the matter up privately with the management company now.. could I have just waited to pay? I was under the impression that as soon as they're in possession of the debt, they can report it to the CBs.

Message 1 of 3
Not applicable

Re: Collection Agency Can't Report to CBs for 90 Days? Legit?

As I understood it, an account can technically be sent to collections as soon as default in payment has occurred, eg the day immediately following a missed due date. Often times you might have a contractual grace period of 30,60 or 90+ days before a creditor will send payment to collections.

Now a "regulation" delay between account going to collections & when the CA can report the new collection account to the CRAs? That sounds like BS intended to get you to pay in full asap.

Did you get the PFD (pay for delete, in your case pay in full for delete. You mention PIF which I think you took to mean PFD - similar but not necessarily the same) in writing or was that a verbal agreement?
Message 2 of 3
Legendary Contributor

Re: Collection Agency Can't Report to CBs for 90 Days? Legit?

I concur with slightlyremoved.

There is no statute or regulation requiring any delay in reporting of a collection to the CRAs.

The statutory requirement is that a debt collector must send a formal collection ("dunning") notice within 5 days after initial communication with the consumer.  They can report even prior to sending dunning notice.


Out of both confusion and caution, you payed to avoid problems.

The CRA thus accomplished its job of getting your money by insinuating that if you pay now, it cannot report.

Thus, you might make them pay for their misrepresentation.


You might have remedy against the debt collector by bringing civil action asserting a violation of FDCPA 807(10), which states that it is a violation if they make "use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer."


A violation of the FDCPA entitles the consumer to statutory damages of $1,000 per violation.

Message 3 of 3
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