New Credit Bureau Reporting Requirements for Debt Collection Agencies and Debt Buyers Become Effective This Week
New mandatory credit bureau reporting process changes that had been announced earlier this year will become effective this Wednesday, June 15. The three major credit bureaus issued a memo in March, stating that the purpose is to provide consumers more transparency. The bureaus established the plan in conjunction with several states’ Attorneys General.
New requirements of collection agencies and debt buyers include:
- Must report the name of the original creditor and creditor classification code according to the Metro 2® format (required for each account or item reported)
- Do not report debt that did not arise from a contract or agreement to pay, including – but not limited to – certain fines, tickets, and other assessments