Can a company legally change an account listed on my credit report as charged off to collections just because I applied for a home loan?
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Can a company legally change an account listed on my credit report as charged off to collections just because I applied for a home loan?
Asked on July 5, 2012 under General Practice, Arizona
Answers:
Anne Brady / Law Office of Anne Brady
Answered 12 years ago | Contributor
If I understand you correctly, this company found out you applied for a home loan, and so they reported to credit rating agencies that they had put your debt into collections to mess with your home loan, so you would pay them off? Â If so, the answer is that if they really did put your loan with collections, then yes, they can legally report that, regardless of their motivation for doing so. Â If, on the other hand, they reported putting the debt out for collections when in fact they did not, they are not within their rights. Â You should immediately alert the credit rating agencies to this and attach a note to your files.
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