Trying to Correct Error w/creditor

[Haleybrook]

My business has a debt with a creditor (not credit card and I did not sign as guarantor for company debt) and the amount is not in dispute. However, the name reported to the collections company is my individual name and not the corporate (business name).  I just received the first letter from CA.   I have not signed for any personal guarantee on that debt, so it's actually a business debt, not my personal debt.  I want that corrected, since it's the personal credit I am attempting to repair.

My business also has the funds to pay the debt in full and I would like to send full payment to the original creditor along with a letter of the error and explanation.  With my letter of explanation, I think the creditor would cooperate, but you never know.   I have good reasons for the delay in payment and the debt is not large, but the primary concern is getting it reported on the correct debtor, which is not me personally. 

Should I also send anything in writing to the CA yet or should I allow the Creditor to take care of that?

I wanted to see if there were any pitfalls I might avoid or tips that I should be aware of.  I joined at this site recently and have been learning a lot by reading the Community boards.

[RobertEG]

Reporting to consumer reporting agencies is limited to "credit or insurance to be used primarily for personal, family, or household purposes."  FCRA 603(d)(1)(A).

"The term "consumer" means an individual."  FCRA 603(c).

Thus  their reporting of strictly business credit to a consumer reporting agency is improper.

I would send them a direct dispute, asserting inaccuracy in their reporting to your personal consumer report, contrary to FCRA 603(d)(1)(A).

They must then respond within 30 days, and either verify the accuracy of their reporting, or delete it.

If they verify the accuracy, then send a formal complaint to the CFPB, who has administrative enforcement authority over clear violations of the FCRA.

[Haleybrook]

Thanks for the info about my matter.  The only issue is that I'm not sure the creditor or the collections agency has reported the debt to a Credit Reporting Agency.  How do  I find out?  It hasn't appeared on my personal report yet.  Perhaps they know they can't report it on my report, so they haven't.  I'm just not sure.  Do I send the dispute letter just in case?  Also, I want to pay the business debt immediately. 

[RobertEG]

No reporting = no inaccuracy of reporting to dispute.

I did not see from your post that they have not yet reported.

Similar agrument relates to a dunning notice, which you apparetly received

Dunning notice to you as the consumer is also not appropriate.  The FDCPA regulates debt collectors, and dunning notice is only sent to a "consumer."

FDCPA 803(3) defines a consumer as "any natural person obligated or allegedly obligated to pay a debt.'

i would send them a request for debt verification (DV) under FDCPA 809(b), which will block any reporting to a CRA until such time as they provide the requested debt verification.  Make sure to send within 30 days of their dunning notice.

In the DV, I would include a sentence stating that you are not a cosumer obligated to pay the debt, and thus make of record that you consider their dunning notice to have been inapproriately directed to you, and not the party/business entity obligated to pay the debt.

[Haleybrook]

Great!  That's what I shall do.   It's okay to pay the full debt amount immediately to the creditor in addition to the letter or not?

[RobertEG]

Yes, I would still pay.

What the "business party" does in satisfaction of the debt would not affect the cease collection bar you are imposing as a consumer against the asserted debt collector, or thier issue in addressing the appropirateness fo their dunning notice to you.

In fact, it would, in my opinion, make your case even stronger, as the business party, by paying, inherently acknowledges the debt as theirs, not yours.

And if they continue to assert your obligation as an individual consumer, satisfaction of the debt would eliminate any issue of further action on their part, such as bringing a civil action against you, as the debt would become $0.  No debt = no basis for seeking a judgment for its satisfaction.

Payment would also raise the uanswerable question as to why, if they consider you to be the obligated party,  they accepted payment from another entity.

Thus, I would consider any acceptance by them of payment by the business as documentation that they dont consider you to individually be the obligated party.

When remitting payment, I would suggest it be in a form that does not include your name (e.g., a personal check), but rather that of the business.

[Haleybrook]

Yes, I'm sending a business check.  Thanks a lot.

There are some issues/error that need to be addressed on my personal credit report.  I'm wondering if it's advisable to have an attorney who specializes in consumer credit do it for me.