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Concerning biz debts that get personal ...

Date: Sat, 07/31/2010 - 13:32

Submitted by WeShallOvercome
on Sat, 07/31/2010 - 13:32

Posts: 13 Credits: [Donate]

Total Replies: 4


One more question for today:

Given that small business CC accounts don't show on personal credit records until they are in default, and/or a CC co. decides to play hard ball ...

... and that my biz CC accounts are still off my record pushing 90 days overdue (I've checked recently using freebie reports).

Is there anyone who has successfully negotiated to keep derog comments off a personal credit report by settling a biz debt before the bank reaches a decision to stick it to you on your personal report?

Citi said they would do that in my case (at 75% settlement) and then another agent contradicted. So probably a bait and switch?

As I understand it, there is no legal requirement for a CC company to report anything at all, at any time (although they usually do in collusion with the bank industry) ... so it ought to be a negotiable factor in a settlement deal that involves business debts at least.


I have several business accounts that were charged off. Half of them are on my credit report and the other half never showed up.

After you settle them, dispute with the credit bureaus saying "not mine". Because technically that is true. My biz accounts were in the business name, not mine.


lrhall41

Submitted by on Sun, 08/01/2010 - 12:23

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"Debt Free to Be": One may be personally liable on the debt, that does not mean a defaulted account should go on your "consumer" credit report. Usually the loan is in the name of the business, and the person is only a gurantor. So, a business loan is not a consumer loan. I would dispute them all from my personal credit report. I don't know the CRAs can legally keep them on the reports or not, but I would use this justification to try to get them removed.


lrhall41

Submitted by on Sun, 08/01/2010 - 21:31

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Amex (at least) certainly claim that they do not negotiate over their right to report "forgiven debts" (via settlement), and I suspect they have to say that in order to maintain some level of leverage prior to pursuing a judgement (or else eat even more bad debt than they are already). They say it's their only resort (to use CRA's) when they are settling for less than full ... and I guess they and other CC firms have to maintain a merciless stance (facade) or lose what little teeth they have in the business of bad debt recovery. This is the case even when they agree an account holder has every reason not to pay, as they accept "stuff happens" and simply have a "that's unfortunate but you owe us" attitude. My feeling is that CC companies take joint risks (particularly in unsecured business debts) that should not absolve them from sharing the downside. Perhaps that is why it is not terribly hard to reach 50% settlements with them sooner or later when there is no means to pay. Amex keep "forgiven debts" on record internally, in case as one agent put it "someone wins the lottery" and settles up on old debts to clear their name!

Good points above about disputing with CRA's over biz debts reported to consumer credit reports. Certainly believe that's worth a try if and when that arises. What I do know (if a CRA doesn't play ball), is that they have to annotate SIF's for example with any mitigating circumstances you provide. Credit pullers then get to see any unique situations that could positively affect their decisions to provide loan products.

Having now settled with Amex, I'll keep you posted as to what transpires with the CRA's down the road concerning this account ...


lrhall41

Submitted by WeShallOvercome on Sat, 08/07/2010 - 00:38

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