When a company makes loans to consumers, they know that a certain portion of those customers will not pay and ultimately become bad debts. Once an account becomes a bad, debt companies have procedures in place that allows them to report bad debt accounts to the credit bureau. Bad debt accounts are normally reported to the credit bureau at the end of the month using a program or system that is compatible with credit reporting agencies. In order to report, you'll need to have a business license and designated office space at your company used for credit reporting purposes.
Call the credit reporting agencies you wish to submit data to and request a membership application. Upon approval, you will become a member of the credit bureau.
2
Get a data furnisher's agreement from the credit reporting agency and sign it and return to the agencies. This agreement outlines the terms and conditions for submitting data.
3
Convert data to be submitted. If your data is not in the Metro 2 format, you will need to have it converted. Contact a credit reporting service company, such as Data Linx (see Resources) and they will convert your data to the Metro 2 format.
4
Transmit your data to the credit reporting agencies. It will be sent using a secure https connection.
5
Call or email the agencies to verify that they have received and downloaded your information. After downloading is complete, they will be able to view the information on computer terminals.
Tips & Warnings
Information can sometimes be reported incorrectly or to another consumer's credit file. Sometimes the credit reporting agencies will come to your place of business when you first get started to do a physical inspection of your premises to see if you have designated office space.
A credit reporting agency will sometimes perform a test run to make sure your data transmits correctly without any problems.
This method will transmit all of the accounts, including bad debts and charged off accounts.
According to FinancialWeb.com, most collection agencies are members of the three major credit-reporting companies or bureaus, Experian, Equifax and TransUnion. As ...
Most negative information doesn't remain within your credit history indefinitely. The Fair Credit Reporting Act notes that the credit bureaus must remove...
There are three main credit reporting agencies: TransUnion, Equifax and Experian. These bureaus use two basic types of reporting codes---account codes and...
markjalali
Feb 21, 2011
This is a better way to report debts owed to small businesses. Much better than collection agencies. Mark Jalali Fort Myers Florida