Having debt on your credit report is a fact of American financial life. But what happens if the same debt is listed multiple times on your report?.
As the Consumer Finance Protection Bureau (CFPB) has explained, this is not a “harmless error. ” That’s because credit bureaus don’t recognize all these entries as duplicates showing the same debt. Instead, the credit bureaus presume that each debt is legitimate and unrelated to the others. Therefore, to calculate your credit score, the credit bureaus will total up all of the debts that are listed on your account, including any duplicates, to ascertain your entire amount of debt.
Consequently, those duplicates can lower your credit score and ultimately cost you money in the form of higher interest rates on credit cards and loans, just like any other error on your credit report.
Have you ever checked your credit report and noticed the same debt listed twice? If so, you’re not alone This frustrating situation, known as duplicate reporting, can negatively impact your credit score and make it harder to secure loans or lines of credit.
But don’t worry, there are steps you can take to address this issue and get your credit score back on track.
Understanding Duplicate Reporting: Why Does It Happen?
There are a few reasons why a debt might be reported twice on your credit report:
- Human error: Sometimes, mistakes happen. A debt collector or credit bureau might accidentally report the same debt twice.
- Multiple accounts: If you have multiple debts with the same creditor, they might be reported separately on your credit report. However, only one of these accounts should reflect an outstanding balance.
- Debt sold to a new collector: If your debt is sold to a new collection agency, the original creditor might still report the debt on your credit report. This can lead to duplicate reporting.
The Impact of Duplicate Reporting on Your Credit Score
Duplicate reporting can have a significant negative impact on your credit score. Here’s how:
- Lower credit score: Each time a debt is reported on your credit report, it lowers your score. So, if the same debt is reported twice, your score will be even lower.
- Higher interest rates: A lower credit score can lead to higher interest rates on loans and lines of credit. This means you’ll end up paying more for the money you borrow.
- Difficulty getting approved for credit: A low credit score can make it difficult to get approved for loans, credit cards, and even jobs.
What to Do If You Find Duplicate Reporting on Your Credit Report
If you find duplicate reporting on your credit report, don’t panic. There are steps you can take to fix the problem:
- Dispute the errors: You can dispute the duplicate entries with the credit bureaus (Equifax, Experian, and TransUnion). You can do this online, by mail, or by phone. Be sure to include documentation to support your claim, such as a copy of your credit report and a letter from the debt collector confirming that the debt has been paid.
- Contact the debt collector: You can also contact the debt collector directly and ask them to remove the duplicate entry from your credit report.
- Consider hiring a credit repair specialist: If you’re having trouble resolving the issue on your own, you might consider hiring a credit repair specialist. These professionals can help you dispute errors on your credit report and negotiate with creditors to improve your credit score.
Class Action Lawsuit: Fighting for Consumers Affected by Duplicate Reporting
Should duplicate reporting have impacted you, you may be qualified to participate in a class action lawsuit. These legal actions are brought on behalf of several individuals who have suffered injuries from the same business or entity. In this instance, the debt collectors who are in charge of disclosing the same debt twice would be the targets of the lawsuit.
The class action lawsuit against Equifax, which is mentioned on the ClassAction.org website, is one example of how consumers can fight back against duplicate reporting. This lawsuit is seeking compensation for consumers whose credit scores were damaged by duplicate collection accounts.
Protecting Yourself from Duplicate Reporting
There are a few things you can do to protect yourself from duplicate reporting:
- Check your credit report regularly: You can get a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once a year at AnnualCreditReport.com. Be sure to review your reports carefully and dispute any errors you find.
- Keep track of your debts: Keep track of all your debts, including the amount you owe, the creditor, and the date you last made a payment. This will help you identify any potential duplicate reporting.
- Contact your creditors if you have any questions: If you have any questions about your debts, contact your creditors directly. They should be able to provide you with accurate information about your account.
Duplicate reporting can be a frustrating and damaging experience. You can, however, take action to resolve the situation and safeguard your credit score. You can make sure that your credit report is accurate and accurately represents your financial situation by raising concerns about errors, getting in touch with debt collectors, and exercising caution.
Advocating Under the Fair Credit Reporting Act Protecting Your Rights to Accurate Credit and Background Check Reports
Having debt on your credit report is a fact of American financial life. But what happens if the same debt is listed multiple times on your report?.
As the Consumer Finance Protection Bureau (CFPB) has explained, this is not a “harmless error.” That’s because credit bureaus don’t recognize all these entries as duplicates showing the same debt. Instead, the credit bureaus presume that each debt is legitimate and unrelated to the others. And so, when determining your credit score, the credit bureaus will add up all the debts listed on your account—including any duplicates—to determine your total financial liability.
Consequently, those duplicates can lower your credit score and ultimately cost you money in the form of higher interest rates on credit cards and loans, just like any other error on your credit report.
How Do Duplicate Entries Occur?
Numerous sources provide data to the national credit bureaus, which automatically compile this data into credit files. (No one is checking to ensure the information they receive is correct. The bureaus obtain information from significant suppliers, banks, and other parties with direct, first-hand ties to you, like credit card companies. And the bureaus also get data from other data compilers and third parties such as debt collectors.
Because of this, it’s possible that different sources are presenting the same information, and the variations in each entity’s debt description are slight enough for the automated systems of the credit bureaus to interpret all of these entries as unrelated debts.
Another way that multiple entries can appear is if a debt has gone to debt collection. Large companies often assign a single debt to more than one debt collector. Due to debt collectors’ reporting of accounts to credit bureaus, it may appear on your credit reports that you have several outstanding debts, even though they are all related to the same credit account.
And it’s always possible there was some error, either in the submission or processing of the data. A computer glitch causes a double entry, the vendor submits the same information twice, and so on.
No matter what the cause, the effect is the same. There are mistakes on your credit report, which can make it more difficult for you to obtain credit or even to get employment, rent an apartment, or purchase a house.
You have the right to dispute the error, regardless of why it occurred, and the credit bureaus are obligated to correct your credit report.
What should I do if multiple collection agencies report on the same debt?
FAQ
Can a collection agency put old debt as new?
Why is the same collection on my credit report twice?
Can a collection agency double your debt?
Can 2 collection agencies try to collect on same debt?
Can multiple credit collection agencies report the same debt?
As the debt is resold between the credit collection agencies in auctions. Multiple credit collection agencies may have owned the debt and reported it to the credit bureaus. However, there are some rules to help protect consumers from multiple reporting of the same debt damaging your credit score.
Can a collection agency report old debt as a new debt?
No. A collection account is always to be considered an extension of the existing debt. It is against the law for a collection agency to report old debts or collection accounts as a new account when the debts are sold. If a collection agency keeps reporting the old debt as a new debt then you may be able to take legal action.
What happens if a debt collector doesn’t work?
If they aren’t successful, they may turn the debt over to a collection agency. At this point, your original account shows up on your credit report as a charge-off with a zero balance. A new collection account showing the balance you owe will appear on your credit report, and debt collectors will begin contacting you.
What if a debt is listed multiple times on my credit report?
Some of my debts are listed multiple times on my credit report. What should I do? If the same debt is listed multiple times (possibly with different names) you should dispute the multiple listings with the credit reporting agency and the original creditor or furnisher that provided the information to the credit reporting agency.