How to Record the Present Value of a Debt

Under the Fair Credit Reporting Act (FCRA), creditors must accurately report the present value of any debt according to the original debt agreement. The creditor is obligated to correctly report the value of the debt in all communications with the debtor related to the current value. In addition, any reports to the major credit bureaus must be accurate. If you can demonstrate that a creditor has violated the FCRA by misreporting the value of a debt, you may be entitled to damages.

Instructions

1

Review the original agreement that created the debt. Look over any bills that were paid and any additional amounts that were borrowed in the case of a line of credit. Calculate the interest payments yourself to ensure that the company has not made any errors. Calculation errors are surprisingly common, so if you see a debt value that is out of line with what you believe you owe, double-check it.

2

Ask your creditor for the current value of the debt. Request that the information be sent to you in writing. If you detect any errors in the debt calculation, inform the creditor and request an itemized report of your account. When you receive this, further review it for any errors. If you think you're a victim of identity theft, inform your creditor as quickly as possible.

3

Order copies of your credit reports from the three major consumer credit bureaus (TransUnion, Equifax and Experian). Dispute any erroneous debts with the relevant credit bureaus. If you have documents from the creditor that show a value contrary to the one reported to the bureau, include copies if the bureau requests more information.

4

Contract with a debt lawyer if the recorded value of your debt remains inaccurate and you have adequate documentation. An attorney will be able to help you file a lawsuit or come to an agreement with your creditor to update the value accurately.