It’s ‘Debt Parking’: Whenever Fake Debts Wind Up in your Credit History

It’s ‘Debt Parking’: Whenever Fake Debts Wind Up in your Credit History

The F.T.C. recently took its first appropriate action to stop the fraudulence. Customers may well not understand the debts are to their reports until they make an application for that loan.

Consider this unnerving situation: You make an application for a loan and then discover that your credit file is marred by way of a delinquent debt — the one that you’ve got already compensated or recognize that is maybe don’t.

You will be a target of unscrupulous collectors who possess put invalid or fake debts on your credit reports to coerce one to spend them. The tactic is known as unlawful “debt parking,” or sometimes “passive debt collection.”

The Federal Trade Commission recently took action against a Missouri collection business and its own owners, alleging which they gathered significantly more than $24 million from customers, mainly by putting “bogus or highly debateable” debts on their credit file. Continue reading «It’s ‘Debt Parking’: Whenever Fake Debts Wind Up in your Credit History»