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Massachusetts Ban On CA Credit Reporting

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I had posted this some time ago, however, it got buried in the Mass. page on the Consumer Forum, so I am posting it again.

 

Here is the link to the Mass. Consumer Credit Act:

 

http://www.mass.gov/dob/209cmr18.pdf

 

Here is the section that bars CA's from reporting(under prohibitions for debt collectors)

 

(11) For a debt collector to report to a consumer reporting agency on its transactions or experiences with a consumer in the debt collector's name.

However, a debt collector may, with the express written authorization of the creditor, report to a consumer reporting agency in the creditor's name.

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It basically just seems like there is a written violation. CA will still break this rule. They will still report to CRA without written consent of OC.

 

I guess it's an extra few bucks for a judgment against the CA if they violate.

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It basically just seems like there is a written violation. CA will still break this rule. They will still report to CRA without written consent of OC.

 

I guess it's an extra few bucks for a judgment against the CA if they violate.

The reason I have posted this is because ANY dispute to ANY CRA for ANY CA report for a Mass. resident is being immediately responded to by the CRA with a DELETION.

 

The CA may not care about Mass. statutes (although they have certainly complained about it enough in their forum) but the CRA certainly does care,as THEY are the ones subject to penalties and fines by Mass.

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The problem I see with the MA law is that it causes the CA to violate the FDCPA which forbids them to use ANY name but their own!

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But doesnt' this law contradict the FCRA? Let's face it...the FCRA demands maximum possible accuracy. If the debt is reported by RMA, for example, but it's really with Citibank, how is it accurate to state the debt is reported by Citibank?

How will we DV unknown CA's on credit reports? Will they CRA tell us exactly who is supplying the informaiton?

A good thought in concept (prevents multiple CA listing from the same account) however I hope it was thought through well...

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Come to think of it, any good DV letter should contain the demand to see the written permission of the OC to report the debt.

 

I didn't see, but can OC's give CA's blanket permission, or is it on a case-by-base basis?

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I wonder how many CA actually know this but choose to violate anyway?

I guess I haven't made myself clear.

 

If you are a Mass. resident and you have a CA reporting on your credit report as XYZ Collection Agency, they WILL be deleted by the CRA if disputed from a valid Mass. address.

 

It doesn't make any difference WHAT the CA wants or doesn't want to do.

 

The ONLY way the CRA will KEEP a CA on the report is if it is reported as :

XYZ Collection Agency as assigned by ABC Credit Card Company, AND the CA has given the CRA a copy of their signed authorization.

 

They are ONLY being deleted if the Mass. resident DISPUTES an existing entry.

 

NEW entries from a CA for Mass. residents are NOT being accepted unless the CA fulfils the new requirements.

 

(The CA's are all bent out of shape on this as they say it skews the FICO and that CC companies and banks will be issuing loans to "undeserving" debtors)

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So do you think I should print out this Mass. Consumer Credit Act and send it along with a dispute of any CA's on my report? (Highlighting the specific area.)

 

(Yes I am a MA resident)

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So do you think I should print out this Mass. Consumer Credit Act and send it along with a dispute of any CA's on my report? (Highlighting the specific area.)

 

(Yes I am a MA resident)

I suggest you simply dispute the account as "this is not my account, I have no such account with this creditor for this amount for this date".

 

IF it is verified, which it WILL NOT be, you can then re-dispute it with a copy of the statute and request a copy of the signed AGREEMENT from the OC.

 

I do NOT suggest a "not mine" EVER, as those usually get automatically handled by a computer program that simply matches the spelling of the name.

 

Word of warning!! If you are within SOL, and concerned about getting sued, LEAVE IT ALONE!!

Edited by Why Chat

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It basically just seems like there is a written violation. CA will still break this rule. They will still report to CRA without written consent of OC.

 

I guess it's an extra few bucks for a judgment against the CA if they violate.

The reason I have posted this is because ANY dispute to ANY CRA for ANY CA report for a Mass. resident is being immediately responded to by the CRA with a DELETION.

 

The CA may not care about Mass. statutes (although they have certainly complained about it enough in their forum) but the CRA certainly does care,as THEY are the ones subject to penalties and fines by Mass.

 

Several years down the road I cannot wait to see how Experian deals with this. I wonder if they will be forever "above the law". It will be interesting to see how this develops.

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I'm about to move to MA very soon (already closed on home there) and I still have some lingering old CA's reporting. Once I live there, even if the debt occurred while I was living in a different state, can I get them deleted? Also, WhyChat, while I've got you here, I'm moving from NC which has a 3 year SOL. MA has a longer one (4 or 6, don't remember at this moment). If I have things that are out of SOL in NC, but wouldn't be in MA, are they back in? Like an account that is 3.5 years old? Thanks!

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I'm about to move to MA very soon (already closed on home there) and I still have some lingering old CA's reporting.  Once I live there, even if the debt occurred while I was living in a different state, can I get them deleted?  Also, WhyChat, while I've got you here, I'm moving from NC which has a 3 year SOL.  MA has a longer one (4 or 6, don't remember at this moment).  If I have things that are out of SOL in NC, but wouldn't be in MA, are they back in?  Like an account that is 3.5 years old?  Thanks!

Mass has a 6 year SOL, however, it also has a "borrowing statute"(read the Mass. page on my website for complete information)

 

Massachusetts Borrowing Statute

§ 9. Suspension in Case of Non-Resident Defendant.

If, when a cause of action hereinbefore mentioned accrues against a person, he resides out of the commonwealth, the action may be commenced within the time herein limited after he comes into the commonwealth; and if, after a cause of action has accrued, the person against whom it has accrued resides out of the commonwealth, the time of such residence shall be excluded in determining the time limited for the commencement of the action;

but no action shall be brought by any person upon a cause of action which was barred by the laws of any state or country while he resided therein.

 

This means if you have already defaulted and have gone BEYOND the prior State's SOL, you can use the shorter SOL as an absolute defense if you are sued.

 

In any case, make sure you have opted out BEFORE you move, and delete old addresses AFTER you move before doing any disputing.

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I think this definitely qualifies as the thread of the day. Perhaps week, or even month.

 

EXCELLENT find, WhyChat...

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sometimes I truly do love AG Reilly :)

 

Crosslinking to the MA thread in the Consumer protection forum

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Ok, would this not also apply to a resident in any other state other than MASS. but the CA is located in MASS.? For example, I live say in OK but the CA is located in Mass., how can they NOT be breaking the law by reporting against me as themselves if they are located in the state that forbids it?

 

I hope that made sense.

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Ok, would this not also apply to a resident in any other state other than MASS. but the CA is located in MASS.? For example, I live say in OK but the CA is located in Mass., how can they NOT be breaking the law by reporting against me as themselves if they are located in the state that forbids it?

 

I hope that made sense.

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Ok, would this not also apply to a resident in any other state other than MASS. but the CA is located in MASS.?  For example, I live say in OK but the CA is located in Mass., how can they NOT be breaking the law by reporting against me as themselves if they are located in the state that forbids it?

 

I hope that made sense.

No, it would NOT apply to any other State's resident.

 

The laws of each State are for the RESIDENTS of that State only.

 

This law applies to any CA from any State who is reporting, or wishing to report on a Mass. RESIDENT.

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WANTED

 

Some Room to Rent

 

Must be in the state of Massachusetts

 

Size is not very important but needs to be at least 4 x 6 x 12 inches.

 

A spare desk drawer would be sufficient.

 

I am a quiet, clean, non smoker. I won’t use any utilities at all. I promise that you won’t EVER even notice that I am there.

 

I travel extensively. My current plans have me traveling out of state 100% of the time for the next 6 months. Therefore, I will not even need a key.

 

Because of my travels I need my roommate to open my mail and occasionally forward the important stuff.

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WANTED

 

Some Room to Rent

 

Must be in the state of Massachusetts

 

Size is not very important but needs to be at least 4 x 6 x 12 inches.

 

A spare desk drawer would be sufficient.

 

I am a quiet, clean, non smoker. I won’t use any utilities at all.  I promise that you won’t EVER even notice that I am there. 

 

I travel extensively.  My current plans have me traveling out of state 100% of the time for the next 6 months.  Therefore, I will not even need a key.

 

Because of my travels I need my roommate to open my mail and occasionally forward the important stuff.

 

LOL, for the fee of $1200 per month...I'll take ya!! :clapping:

I think I have a spare closet not in use!

 

(Just Kidding)

Edited by OhBoyOhBoy

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WANTED

 

Some Room to Rent

 

Must be in the state of Massachusetts

 

Size is not very important but needs to be at least 4 x 6 x 12 inches.

 

A spare desk drawer would be sufficient.

 

I am a quiet, clean, non smoker. I won’t use any utilities at all.  I promise that you won’t EVER even notice that I am there. 

 

I travel extensively.  My current plans have me traveling out of state 100% of the time for the next 6 months.  Therefore, I will not even need a key.

 

Because of my travels I need my roommate to open my mail and occasionally forward the important stuff.

 

LOL, for the fee of $1200 per month...I'll take ya!! :clapping:

I think I have a spare closet not in use!

 

(Just Kidding)

 

For $1200/mo in Boston that's about what you get :clapping:

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