Can a Collection Agency Put Things on My Credit Report That Are Not From the Original Creditor?

A credit report lists items from original creditors and collection agencies along with identifying information and public information. Three credit reporting agencies are responsible for compiling and maintaining the information in your credit report. Consumers are responsible for monitoring their credit report to ensure accuracy. Consumers can dispute inaccuracies with the reporting agency. If the item is deemed incorrect, it will be removed from the credit report.

Definition

A third-party collection agency takes over delinquent account collections from the original creditor. Original creditors may have internal collection departments for recent account delinquencies --- typically within six months --- but third party collection agencies are separate companies that work on commission for the original creditor. Debt buyers are another type of collection agency. A debt buyer purchases the delinquent account after the original creditor designates it as a charge-off.

Reporting

Debt collectors can report debts to the credit reporting agencies as a collection account. Interest and other accrued fees that were not from the original creditor may also be reported. For example, if your credit card account was listed as a charge-off on your credit report by the original creditor, the debt collector or debt buyer can also report the account as a collection. The amount owed will likely be different from the original creditor as interest will continue to accrue on the unpaid balance.

Timing

Delinquencies, collections and charge-offs can remain on your credit report for seven years from the date of the original delinquency. After seven years, your obligation to pay the debt does not disappear, but the listing on your credit report should. Collection agencies may continue to submit the data to the credit reporting agency, but you can have the item removed by filing a dispute.

Regulations

The Fair Debt Collection Practices Act --- FDCPA --- sets the rules and regulations that debt collectors must follow. FDCPA rules do not apply to an original creditor, only third-party debt collectors and debt buyers. The FDCPA regulations are enforced by the Federal Trade Commission (FTC). The Fair Credit Reporting Act (FCRA) outlines consumer's rights regarding the information in their credit report. Each person is eligible for a free credit report once each year, more often if they have been denied credit, employment or insurance based on information in the file.

Conclusion

Third-party debt collectors can put things on your credit report that are not from the original creditor. They may not change the dates of the original delinquency, but they may list the account as a collection account, whereas the original creditor may have listed the account as a charge-off. Debt collectors can also report a different outstanding balance than the original creditor listed due to continuing interest and other fees being added to the account.