I work at one of the big 3 credit bureaus so thought I’d chime in -
It is entirely possible to report inaccurate information to the bureaus. Although more often than not it’s on accident, not malicious. Additionally bureaus collect a lot of information from other sources. Some public some private. It’s possible for these datasets to be error prone themselves.
There are however official procedures for disputing/correcting errors in reporting and in my experience they do a pretty good job of validating everything (as that’s literally the business they’re in)
Our son (10 yo) had a delinquent medical bill for reasons we don't understand. The creditor can't tell us who sent the bill because we aren't the named party and I'll be damned if I put him on the phone with them, because he is a minor. So, we're at an impasse and no one can tell us anything.
Someone managed to get his name and address and did not realize he was a minor. Brilliant system you have!
hire a lawyer and write a letter. You're not at an impasse. You can have this cleared, if they don't have evidence and you write a letter, they have to shut it down.
I'll do no such thing. Someone else made a mistake and therefore I have to pay a lawyer to fix it? It's not a legitimate debt, but it goes to show how anyone can put anything in anyone's file and these information brokers will suck it up and pass it around without even the most basic sanity checks. The FCRA was a good start but an American GDPR would be better.
You shouldn't need a lawyer, but it may require a couple hours of time (but not all at once).
The next time they call, tell them that the person they are looking for is a minor and you are their guardian and because of that you are required to speak on their behalf.
Immediately inform them that all further communication must be done in writing and that you are requesting that they validate the debt in writing. They are required by law to communicate in writing if you request it and to also validate the debt.
If the next letter from them is not a debt validation, you should send them a simple cease and desist response stating they have not validated the debt and may no longer contact you. Send it certified, return receipt requested. Keep a copy for yourself.
If it doesn't stop at that point, you will need a lawyer, but it will most likely be at no cost to you:
If they send you another letter or call you again attempting to collect, get their information and if you are inclined, contact a debt collection attorney. You would be able to sue them for up to $1,000 per incursion plus the fees from your lawyer. Provided you collected their information and have your initial letter, it should require very little time from you to go through the legal process.
+1 to this -- and I'll add that you can find decent sample legally-phrased "f••• off, idiots" letters on the web (they should cite a specific U.S. law that establishes the two requirements mentioned: communication in writing, and verification of the debt on demand -- I can't recall the law's citation number off the top of my head).
If they're not on the debt, hence why the collector won't talk to the adults, and the debt is in the name of a 10yro, won't that disappear by the time the kid's 18 and not show up on the parents' record?
I don't believe that to be true but, in this case, it's a parent opting their ten year old out of it. The point is that this can be resolved to their benefit. Instead, they would rather scream about it being unfair. No one cares; the only people who get hurt will be them.
How did an 11 year old kid get "opted in" to the system in the first place?
And resolving an unfair situation by working within the absurd system without screaming about it just means that people will continue to be hurt by it.
Mistakes happen, but I obviously have no idea. You have to chose your battles. If you want to fight the credit bureaus then go for it, more power to you. Most of us, myself included, don't have the time, energy, or desire. I'd rather just take care of it and spend my time on more important matters.
Yes, because it's better than the alternative (ruining the credit rating of your ten year old, something they'll have to fix 8+ years from now). A perfect solution doesn't always exist.
In this case it's very unlikely they would need to hire a lawyer anyway.
You're correct; it drops off your credit report after 7 years, but the debt itself doesn't go away.
The solution here is to do what one of the posters above me said to do. Dispute the claim, inform the collector that they are going after a minor, demand all further communications be made via mail.
yardie says> So, we're at an impasse and no one can tell us anything.*
This is not true. And the system works fine. But you'll have to do some work (write a few letters and maybe a bit more). Here's how:
0. Open a chronological paper file. Copies of all correspondence with dates clearly marked/stamped will go into this file. Put the file into a file cabinet: put a copy of every letter, note or form, including the creditors' initial complaint, into it in time order. Also put notes about any phone conversations into it. Put dates on everything.
1. Talk to your local police department and, with your son, file a report with them if possible. They'll view it as a waste of time but it helps by putting you on "the right side of the law." Do it just to have a police report on file locally.
2. Have your son write a letter to the creditor (not the credit bureau) explaining that your son is a minor, the debt is not his, he did not purchase the item and asking them to remove the invalid entry from his credit report. Add a page with your adult names and signatures explaining that he is your legal son. Send those two letters along with a copy of the chronological file to the the creditor, all via registered mail if you're paranoid.
3. Wait. They _will_ respond. Usually they'll cave at this point. Sometimes they'll call and ask that a police report be filed in _their_ jurisdiction (usually by phone) or some such. Do what they ask within reason. Make sure they (creditor, police) send you copies of everything. Follow up if they don't.
4. Wait. _They_ (the creditors, NOT you) should, after brief investigation, notify the credit bureau to remove the item from your son's credit report. If they don't do so within a few months, send follow-up second and third letters if necessary, reminding them.
5. If you get no response from the creditor after two months, copy the chronological file and send it via registered mail to the credit bureau adding a cover letter explaining that you have exhausted the legal means of redress with the creditors and they have refused to respond appropriately. Ask the credit bureau to investigate the creditor's item on your son's credit report.
This sounds like a lot of trouble but it really isn't and it would be a great lesson for you son, since it shows how most of the world works.
Correction involves loosely-coupled organizations and persons. Nothing in this happens at Internet speed. Each contact must have the situation explained from the beginning. It teaches a person how to order events in time, how to narrate a story consistently and how to be patient.
It's obscene that this burden falls on these folks because someone else falsely used this kid's name. The police report should be filed against the collection agency and the credit bureau, for fraud.[0] We may not have debtor's prisons anymore, but we certainly have guilty-by-default for finance.
> it shows how most of the world works.
It certainly does, but not in the way you meant. :/
[0]I'm aware this is not legally possible; I mean "should" in a moral sense.
They didn't mention a collection agency, nor is one likely involved with this case yet. Collection agencies enter the picture usually long after an incident and much neglect by various parties.
Collection agencies are not evil. If you've ever been a landlord or had someone fail to pay a debt, a collection agency may be a godsend b/c they buy your debt (you get something at least; they get the paper debt, valid or not). Is that not a valid capitalistic risk-taking venture?
The credit bureau can't be charged with fraud: their data is from legitimate businesses (creditors); any fraud would apply to the creditor.
This system has and still works well. Most everyone reading this has made good use of our current credit system. We all understand how it works but are impatient with the slowness of the system. But it is a mistake to confuse slowness with malintent.
If the goal is to get it off the credit report then #2 needs to be addressed to the CRA, not the furnisher/creditor. Please see the safe harbor (for the CRA) language in the FCRA.
Debt will automatically fall off son's report after 7 years. They can ignore it without consequences. (assuming kid isn't getting a mortgage at 17 years old, haha)
> There are however official procedures for disputing/correcting errors in reporting and in my experience they do a pretty good job of validating everything (as that’s literally the business they’re in)
Anecdotally, I can't agree with this.
I'm six months in to trying to convince Equifax that I exist. Apparently they accidentally registered me as dead in their system, which has caused background checks on me, like when I registered my ABN, to fail. Turns out there are a number of government systems that have been outsourced to them.
They have twice manually intervened, and twice their automated processes have "corrected" their information and relisted me as deceased. And getting a manual intervention is a lot of complaints, and a lot of escalations.
> There are however official procedures for disputing/correcting errors in reporting and in my experience they do a pretty good job of validating everything (as that’s literally the business they’re in)
I'd disagree with that. The three agencies have a couple of names I've never gone by (I go by my middle name, so I expect "Middle Last" and "First Last" but I never went by "First Mother's-Maiden-Name"), and a couple addresses I've never lived at on my records for 20 years. They refuse to remove them.
It is entirely possible to report inaccurate information to the bureaus. Although more often than not it’s on accident, not malicious. Additionally bureaus collect a lot of information from other sources. Some public some private. It’s possible for these datasets to be error prone themselves.
There are however official procedures for disputing/correcting errors in reporting and in my experience they do a pretty good job of validating everything (as that’s literally the business they’re in)