Collector - October 2016 - 46

What Can You Say to Your CRA? Federal law, state law and business policies all dictate the type of consumer information that may be furnished to a CRA. I n addition to letters and phone calls, reporting a consumer's debt to a consumer reporting agency (CRA) is a legitimate collection method. However, not all data or all debt is reportable. The Fair Credit Reporting Act limits what information can be reported and how long information can be reported on a consumer's credit report. Furnishers of information to CRAs also have to be aware of the limitations imposed by the National Consumer Assistance Plan (NCAP), which further limits the information that CRAs will accept. NCAP is the result of an agreement reached between the three major CRAs (TransUnion, Equifax and Experian) and multiple state attorneys general to modify the current credit reporting practices. While the FCRA typically permits furnishers to report information about consumer debts, the FCRA does not allow a delinquent debt to be reported in perpetuity. It requires a furnisher to provide a date as to when the debt became past due (i.e., date of delinquency). Generally, the FCRA allows a debt to be reported seven years from the date of delinquency. At the end of the seven years, the debt must be removed from the consumer's credit report. The seven-year reporting period for accounts placed in collections begins to run 180 days after the date of delinquency. Longer timeframes generally exist for reporting information pertaining to judgments, liens and bankruptcies. Even if the FCRA may legally allow the accurate reporting of certain consumer information, CRAs may have policies restricting the reporting of certain information. Furnishers need to be aware of and understand these limitations as well. For instance, under NCAP furnishers may not report debts that did 46 not arise from a contract or agreement to pay. Some examples of these types of debts are certain fines, tickets and other assessments, such as library fees or fines, parking tickets and court fines and fees. NCAP also contains initiatives that will restrict the reporting of certain medical debts and judgments. Because each CRA may also have its own policies regarding acceptable data types, furnishers should reach out to the CRAs to understand what type of data is acceptable. Furnishers can learn more about what information may be reported to CRAs in ACA SearchPoint document #3001, Reportable Information. Have you checked out ACA's member-only SearchPoint library? ACA SearchPoint is filled with documents that put important compliance information related to the FDCPA, FCRA, TCPA, state laws and many other topics at your fingertips. To access ACA SearchPoint, visit acainternational.org/searchpoint. Accounts Receivable Merchant Services Solutions been a leading provider of electronic High Risk Holdings has payment and risk management solutions for Accounts Receivable Merchants. We work with several acquiring banks that have an appetite for Collections in providing an online merchant account and payment gateway to accept credit card payments. With over 25 years of experience in the Payment Industry, and a team of Certified Payment Professionals, we understand the Accounts Receivable Industry's unique payment processing requirements and needs. Competitive Rates * Quick Approvals * Free Rate Analysis * 24/7 Tech Support Custom Pricing Plans Available * Multiple Acquiring Bank Partners Apply for a new merchant account with High Risk Holdings today! Call us at (888) 218-4818 or e-mail contact@ highriskholdings.com for a free consultation or apply online: www.highriskholdings.com ACAINTERNATIONAL.ORG http://www.acainternational.org/searchpoint http://www.highriskholdings.com http://www.ACAINTERNATIONAL.ORG

Table of Contents for the Digital Edition of Collector - October 2016