Why do CAs commit unnecessary violations?

[nothingman02]

I can understand if they try some dirty tactics and violate the law.Calling frequently and at odd times for instance. Or threatening lawsuits and garnishments etc. These tactics atleast compel innocent folks to pay up the debt without any verification and/or returns such as, say, a deletion.

But whats the point of innacurate reporting which seems pretty harmless to the consumer? Reporting the debt as 120 days late, reporting a CO as a factored debt, reporting a revolving debt as an installment type etc etc...? What really is the point. It almost seems stupid as it does provide the consumer an easy leverage. 

[marty56]

Its all part of a pressure tactic to get you to pay, even if you dont have a legal obligation to do so.

[dollar_bill]

I've noticed the latest tactic includes reporting numerous inquiries on your credit under a "permissible purpose" listing. The sole intent of such an action by a collection agency is to damage your ability to obtain credit and has nothing to do with a business purpose. As an average consumer there is very little you can do other than invest time and effort into a cause when they will simply dump the account on another CA then you have to start all over.

[nothingman02]

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@marty56 wrote:
Its all part of a pressure tactic to get you to pay, even if you dont have a legal obligation to do so.

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I can understand if they try some dirty tactics and violate the law.Calling frequently and at odd times for instance. Or threatening lawsuits and garnishments etc. These tactics atleast compel innocent folks to pay up the debt without any verification and/or returns such as, say, a deletion.

But whats the point of innacurate reporting which seems pretty harmless to the consumer? Reporting the debt as 120 days late, reporting a CO as a factored debt, reporting a revolving debt as an installment type etc etc...? What really is the point. It almost seems stupid as it does provide the consumer an easy leverage.

Inaccurate reporting...all it seems to do is to provide a consumer more leverage. And if the consumer is not monitoring his reports, inaccurate reporting seems to be of no consequence. How really is it putting pressure on the consumer to PIF? If the CAs stay straight and stick to the law, the consumer has very little power in fighting a debt and negotiating a deal.

[Anonymous]

Easy answer:  "SHOW ME THE MONEY, HONEY!"  They do what they find to be the most lucrative.  And violations usually go without consequence, and even if the consumer realizes the violations, doing something about it is not likely, since the consumer is willing to do almost anything to stop the harrassing calls, letters and the torture of credit.

I guess it's true that many believe, "It ain't wrong if you don't get caught" so they find it pays big.

[nothingman02]

Easy answer indeed john, but not to my question

ETA: Let me detail. If I were a CA, and if I assume (with very little risk statistically as most consumers are not aware of laws) and if I decide to commit violations to entice payments, I would;

1) try and make harrassing phone calls

2) Try and call neighbours, workplace etc  etc..

3) Threaten lawsuit garnishents etc.

I would not report inaccurately as;

1) That would not fetch me anything. The consumer is likely not even monitoring the reports.

2) If the consumer takes a peek at his reports, I am leaving 'hard evidence' of FCRA violations through inaccurate reporting. The consumer gets more leverage an/or I would have to stop collections and sell the debt if its not worth suiing. I have to sell a debt under dispute at that which is even worse for me. 

So why would I report inaccurately?

Message Edited by nothingman02 on 07-19-2009 09:05 AM

[Anonymous]

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@nothingman02 wrote:

Easy answer indeed john, but not to my question

ETA: Let me detail. If I were a CA, and if I assume (with very little risk statistically as most consumers are not aware of laws) and if I decide to commit violations to entice payments, I would;

1) try and make harrassing phone calls

2) Try and call neighbours, workplace etc  etc..

3) Threaten lawsuit garnishents etc.

I would not report inaccurately as;

1) That would not fetch me anything. The consumer is likely not even monitoring the reports.

2) If the consumer takes a peek at his reports, I am leaving 'hard evidence' of FCRA violations through inaccurate reporting. The consumer gets more leverage an/or I would have to stop collections and sell the debt if its not worth suiing. I have to sell a debt under dispute at that which is even worse for me. 

So why would I report inaccurately?

Message Edited by nothingman02 on 07-19-2009 09:05 AM

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I'm not sure that most CA's intentionally report inaccurate data.  They have thousands of records and the CR updates are automated.  What may be the issue is bad data in their system, and they don't really care enough to correct it even upon notice.

While innaccuracies reported are potentially "hard evidence" this isn't usually the "loaded gun."  Because as you mentioned, most people don't know the laws, are intimidated by CA's, will do whatever they can to stop the calls or to get it settled (thinking that if they pay it will help their credit).

So, its a lot like life insurance.  Why do they issue policies when they know people are going to die?  Because the overall bottom line pays. 

CA's, while they occassionally get caught with their hand in the proverbial cookie jar, they most often do not, or at least the consumer doesn't pursue it to any point of consequence to the CA.

[nothingman02]

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@Anonymous wrote:

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I'm not sure that most CA's intentionally report inaccurate data.  They have thousands of records and the CR updates are automated.  What may be the issue is bad data in their system, and they don't really care enough to correct it even upon notice.

Care to elaborate on the highlighted parts?

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