What the Fair Credit Reporting Act Means to Your Business

The Fair Credit Reporting Act (FCRA) is a federal law regulating the collection, dissemination and use of consumer information, including data relating to a consumer’s credit. Along with the Fair Debt Collection Practices Act (FDCPA), the pair comprise the basis of consumer credit rights in the United States. Their promulgations are enforced by Federal Trade Commission (FTC) and private litigants.

However, the FCRA is not just important to consumers. It is invaluable knowledge for business owners, too. That’s because the FTC requires businesses to report accurate information about debtors who owe them money. Collection laws also permit debtors to request written documentation, such as copies of invoices, once the debtor is notified of the pendency of the alleged debt.

The FCRA also charges businesses with reporting accurate credit information about its debtors to the three major credit reporting agencies. Should your company receive a complaint from the FTC on behalf of a debtor complaining about the alleged debt or your methods of attempted collection, it would be wise to respond to that document within thirty (30) days.  If you don’t respond within that prescribed time, the debt will be removed from the debtor’s credit report. Once removed, the debt no longer exists.

The Jayaram Law routinely and successfully assists its clients in their business-to-business (b2b) collection needs.  We take pride in obtaining payment on accounts receivable without fracturing critical business relationships or engaging in time-consuming and costly litigation efforts.
If you need business debt collection services conducted in a professional manner, contact our B2B (business-to-business) debt collection law firm.