Lawsuit: Credit Bureau Associates Falsely Threatens Negative Credit Reporting

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Credit Bureau Associates has been accused in a proposed class action of violating the Fair Debt Collection Practices Act by falsely threatening a consumer with negative credit reporting consequences. The plaintiff in the case says he received a collection letter from the defendant that contained the following statements:

“Your account has been listed with CBA for immediate collection; with authority to record this item on your personal credit file. The Fair Credit Reporting Act states that this kind of information can remain in your credit file for 7 years.”

These statements, according to the complaint, imply that the defendant can – and will – report the plaintiff’s alleged debt to credit reporting agencies for seven years. The complaint argues, however, that federal law permits the reporting of delinquent obligations “for seven years from the date of delinquency” and that the age of the plaintiff’s purported debt would prevent it from being included in credit reports for the full seven years. The suit concludes that the defendant’s statements were false threats on which the debt collector never intended to take action.