Hire a Collections Agency Using a collections agency allows you to focus on running your small business rather than chasing down bad debts. Be sure to report all of the information you have on the fraudulent transaction s to all three companies.
Typically a collections agency will charge a small percentage fee of the bad debt in an attempt to collect the bad debt for you.
For example, suppose a consumer discovers that the credit report shows a credit card is still open even though the account was closed five years ago. Each credit bureau has its own guidelines for reporting bad debt but the general rule-of-thumb is to report debts that have gone unpaid more than 90 days.
The bureaus bill you for this service. Items you will need Account with credit reporting agency for businesses Fraud report phone numbers for individuals Report identity theft or fraud using the toll free reporting numbers for EquifaxExperian and TransUnion If a consumer discovers inaccurate information, he should gather evidence that the report is inaccurate and contact the credit bureau as well as the business.
However, unlike a collections agency, credit reporting services do not attempt to collect money for a delinquent account or bad debt on your behalf. You will also how can a business report to credit bureau required to have the appropriate software necessary to electronically submit data to the bureaus.
This is the major credit reporting agency for businesses and has the same function that the consumer credit bureaus have with respect to individuals.
Some bureaus, like Experian, permit you to complete the application online. This is equally true of businesses you extend credit to, although you use a different credit reporting agency than you do for individuals. The consumer should notify the credit bureau and the credit card company about the mistake, and the credit card company should also notify the credit bureau to ensure accuracy.
To assist in the gathering of this information, businesses can report consumer activity to these bureaus, which let consumers request a copy of their credit report. Step 4 Examine the costs, fees and time commitment to determine if reporting delinquent debtors is cost effective for your business.
To ensure that the business knows how to report information accurately, the various credit bureaus conduct inspections before signing a reporting contract with the business. Moreover, a collections company is familiar with debt collection laws and the most effective way to get a debtor to pay.
Step 6 Call the bureau after your application is submitted to check on the status of your application.
Reporting a bad debt to the bureaus might encourage a debtor to pay the amount owed in order to resolve the outstanding delinquency that appears on his credit report.
Reporting Details Businesses will report the details of consumer credit activity to the credit bureau: The agency can report the debt to the bureau instead and alleviate the need for you to establish such a service yourself. If your small business is awarded a judgment against the debtor, it becomes public record and the credit reporting agencies will automatically pick it up.
The phone number for each bureau is located on its website. Visit the BBB website and navigate to the local chapter of the city where the debtor resides or does business, and report his bad debt to the appropriate BBB office.
In some cases, third-party agencies will act as the link, seeking out businesses and assisting them in establishing a relationship with the credit bureau.
If you are a landlord or you extend credit as a businessperson, reporting delinquent tenants and customers helps protect other creditors, plus it strengthens your legal position in the event court action becomes necessary. Your account enables you to check the credit rating of people before you extend credit.
Use a Credit Reporting Service. Another advantage is collection agencies are already members of the credit bureaus reporting service and can easily report bad debts. If the credit bureau or the business fails to correct inaccurate information or is unwilling to assist the consumer with making changes, the consumer can contact the FTC to report the problem.
Step 3 Read the documentation received from the bureau.
You will have to complete an application to begin the process. Join a Credit Reporting Bureau The most effective method for reporting a bad debt to the credit reporting agencies is to pay a fee and report the bad debt directly.
Credit reporting services report bad debts to each of the three credit reporting bureaus. In addition these services, they can provide support for small businesses in reporting all bad or delinquent debts.
Photo Credits credit 3d sign image by onlinebewerbung. After a certain amount of time, uncollected payments or accounts receivable become bad debt.Oct 03, · I will have a loan of about $80, that my parents are lending me, we're setting up a legal loan document and all that, I was wondering would they be able to report that to the credit bureau, so I'll finally have something good show up on my report.
Jul 19, · Report your small business' bad debts to the Better Business Bureau as well as the credit reporting agencies. Visit the BBB website and navigate to the local chapter of the city where the debtor resides or does business, and report his bad debt to the appropriate BBB office.
To assist in the gathering of this information, businesses can report consumer activity to these bureaus, which let consumers request a copy of their credit report.
Banks and other lenders use a consumer’s credit report to determine the level of risk in extending a loan.
To report a customer or business that’s not paying, you first need to be a member of the proper credit agency.
For a small fee you can report delinquent accounts and gain access to credit reports. Equifax, Experian, and TransUnion handle reports for individuals, while D&B handles reports for businesses.
This is the major credit reporting agency for businesses and has the same function that the consumer credit bureaus have with respect to individuals. You must have an account. Once you open an account, you can report businesses that don’t pay their bills and check business credit ratings.
Before your business can report a debt, you must become a client of the bureau and follow its credit-reporting guidelines.
Step 1 Contact the credit bureaus directly.Download