Why don't some collection agencies report to the Credit Bureaus?

[Anonymous]

I have in the past received notices from two different collection agencies but it appears as though they are not reporting the delinquencies to the credit reporting bureaus. One is a medical bill and has a Date of Service 7/2008 but the date on the notice of debt is Oct 2011. The second one is from Midland Credit Management and the date of the last notifcation is dated 11/2015. I do know on this one from MCM that is was previously held by CBE group and they received it around 1/2011. Does is matter that MCM is the second agency to have this debt? Do you think because it is MCM they are treading lightly due to the scrutiny they are under?

Thanks!

[darwin_wins]

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@Anonymous wrote:

I have in the past received notices from two different collection agencies but it appears as though they are not reporting the delinquencies to the credit reporting bureaus. One is a medical bill and has a Date of Service 7/2008 but the date on the notice of debt is Oct 2011. The second one is from Midland Credit Management and the date of the last notifcation is dated 11/2015. I do know on this one from MCM that is was previously held by CBE group and they received it around 1/2011. Does is matter that MCM is the second agency to have this debt? Do you think because it is MCM they are treading lightly due to the scrutiny they are under?

Thanks!

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In terms of MCM, have they been sending you notices with some kind of deal say "pay 60% of your original amount and we will consider it done"? If so, if you don't respond at some point it will show up on your credit report. I got my first notice in Sept and the last one in Dec and by end of Dec they started reporting it on the report. The thing reported by MCM is SOL so they didn't do anything other than offering me a chance to pay it off before they report. I knew it was SOL so I knew I could get it off the reports in next few months and of course their deal is not something I can pay off so there is that.

[RobertEG]

They could be avoiding reporting as a means to avoid running afoul with the CRAs.

Credit reporting is voluntary.

However, once a party reports to a CRA, they subject themselves to both the requirments under the FCRA to promptly update that reporting as necesssary to maintain its current accuracy, and they subject themselves to the no-PFD policy of the CRAs.

If they have not reported, they bypass any such restrictions.

Additionally, some smaller debt collectors dont have reporting agreements with the CRAs, and/or wish to forgo the expense.

It costs $ and they must meet reporting requirements in order to establish a reporting agreemeent with a CRA.

[gdale6]

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@Anonymous wrote:

I have in the past received notices from two different collection agencies but it appears as though they are not reporting the delinquencies to the credit reporting bureaus. One is a medical bill and has a Date of Service 7/2008 but the date on the notice of debt is Oct 2011. The second one is from Midland Credit Management and the date of the last notifcation is dated 11/2015. I do know on this one from MCM that is was previously held by CBE group and they received it around 1/2011. Does is matter that MCM is the second agency to have this debt? Do you think because it is MCM they are treading lightly due to the scrutiny they are under?

Thanks!

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If this in fact is the DoFD of the account then it is at the max time it can be reported which is 7.5 yrs from the accounts DoFD, this could be the reason for this particular account not reporting.

[Anonymous]

I recently got a collection letter (first notice) for a medical bill I occured about 6 months ago. I paid the collection amount in full right away. The collection never showed up on my credit report although all this just happen last week. Do you think the collection paid will be reported to my report? I was hoping it would never show up so thats why I paid it right away.

[RobertEG]

Most debt collectors who do report do so as part of their collection tactics.

Afte the debt is paid, they often will not pursue credit reporting, but are not prevented from reportting after the fact.

The preferred process is to call and at least obtain an oral pay for not reporting agreement priot to paying a debt colelctor who has not yet reported.