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Reporting a Money Judgment to a Credit Bureau

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  • 02-11-2018, 12:00 PM
    AlwaysOnTime
    Reporting a Money Judgment to a Credit Bureau
    My question involves collection proceedings in the State of: NY

    I manage a large residential property in NYC and have been aggressively pursuing former tenants that owe money for unpaid rent and/or damages.

    During the past few years, we have been awarded money judgments, either Default Judgments or Notice of Judgment when tenant appears in court, and have filed those money judgments in the respective court (small claims or civil court) and those Money judgments when necessary have also been recorded by the clerk.

    At a minimum, my goal is to have the money judgment appear on the individual's credit report.

    Unfortunately, it does not appear that the money judgments, even those that are 2 or 3 years old, are making their way on to the credit reports.

    On one hand, I have been informed that the credit bureaus will pick up the money judgments automatically at court and place them on the credit reports and creditor does not have to do anything. Well, that does not seem to be happening in my cases.

    On the other hand, I have also been informed that the court clerks send the money judgments to the credit bureaus, which I have a hard time believing. Our attorney also never heard of this, but I don't know as anything is possible.

    Either way, I just want these money judgments to appear on the former tenants credit report.

    How do I make this happen?

    Thank you.
  • 02-11-2018, 12:26 PM
    Highwayman
    Re: Reporting a Money Judgment to a Credit Bureau
    Just curious why you never used a City Marshal in an attempt to collect your civil judgments?

    I had an judgment entered against me some years ago (an error on the part of the State) and pretty shortly after it was recorded by the County Clerk it showed up on all three credit reports. Not sure how it works in the City but it could be an issue of sheer volume delaying things.
  • 02-11-2018, 04:08 PM
    adjusterjack
    Re: Reporting a Money Judgment to a Credit Bureau
    Quote:

    Quoting AlwaysOnTime
    View Post

    Either way, I just want these money judgments to appear on the former tenants credit report.

    How do I make this happen?

    Become a paying member of a credit reporting agency that reports to all three credit bureaus. Then you can report directly. I did that when I had my rentals. I could report payment history and judgments, and obtain credit reports.

    Also consider the National Tenant Rating Bureau:

    https://www.thelpa.com/lpa/ntrb_description.html
  • 02-11-2018, 04:18 PM
    jk
    Re: Reporting a Money Judgment to a Credit Bureau
    How do you know the judgments aren’t showing up on their credit reports? Have you unlawfully been pulling credit histories?
  • 02-11-2018, 06:23 PM
    adjusterjack
    Re: Reporting a Money Judgment to a Credit Bureau
    Quote:

    Quoting jk
    View Post
    How do you know the judgments aren’t showing up on their credit reports? Have you unlawfully been pulling credit histories?

    Might not be illegal under Section 604 of the FCRA:

    https://www.consumer.ftc.gov/sites/d...orting-act.pdf
  • 02-11-2018, 07:09 PM
    jk
    Re: Reporting a Money Judgment to a Credit Bureau
    Care to be more specific? I see nothing that would allow a judgment creditor to pull a credit history of a judgment debtor.
  • 02-11-2018, 09:08 PM
    Mr. Knowitall
    Re: Reporting a Money Judgment to a Credit Bureau
    Quote:

    Quoting jk
    View Post
    I see nothing that would allow a judgment creditor to pull a credit history of a judgment debtor.

    To be safe under the FCRA, a judgment creditor should not obtain a consumer's credit report unless the debt underlying the judgment arose from a transaction in which the consumer directly and voluntarily sought credit from the plaintiff.
  • 02-11-2018, 11:17 PM
    adjusterjack
    Re: Reporting a Money Judgment to a Credit Bureau
    Quote:

    Quoting jk
    View Post
    Care to be more specific? I see nothing that would allow a judgment creditor to pull a credit history of a judgment debtor.

    604. Permissible purposes of consumer reports
    (a) In general. Subject to subsection (c), any consumer reporting agency may
    furnish a consumer report under the following circumstances and no other:
    (1) In response to the order of a court having jurisdiction to issue such an
    order, or a subpoena issued in connection with proceedings before a Federal grand jury.
    (2) In accordance with the written instructions of the consumer to whom it relates.
    (3) To a person which it has reason to believe
    (A) intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be
    furnished and involving the extension of credit to, or review or collection of an account of, the consumer;
    or
    (B) intends to use the information for employment purposes; or
    (C) intends to use the information in connection with the underwriting of insurance involving the consumer; or
    (D) intends to use the information in connection with a determination of the consumer’s eligibility for a license or other benefit
    granted by a governmental instrumentality required by law to consider an applicant’s financial responsibility or status; or
    (E) intends to use the information, as a potential investor or servicer, or current insurer, in connection with a valuation of, or
    an assessment of the credit or prepayment risks associated with,
    an existing credit obligation; or
    (F) otherwise has a legitimate business need for the information
    (i) in connection with a business transaction that is initiated by the consumer; or
    (ii) to review an account to determine whether the consumer continues to meet the terms of the account.

    (G) executive departments and agencies in connection with the issuance of government-sponsored individually-billed travel charge
    cards.

    Post judgment collection efforts make it legal to pull a credit report.
  • 02-12-2018, 12:01 PM
    jk
    Re: Reporting a Money Judgment to a Credit Bureau
    The judgment creditor is not extending credit to the judgment debtor.
    There is no account open where the creditor would need to be aware of judgment debtors credit history.

    All of those reasons died as soon as the judgment was ordered.
  • 02-12-2018, 12:25 PM
    Mr. Knowitall
    Re: Reporting a Money Judgment to a Credit Bureau
    The judgment does not create a context in which the defendant, as a consumer, directly and voluntarily sought credit from the plaintiff. The transaction underlying the judgment may nonetheless qualify the plaintiff to pull a credit report, even if a judgment has been issued.

    Going back to the original question, the court does not automatically send copies of judgments to credit reporting agencies. However, judgments are public records, so if it chooses to do so a credit reporting agency may obtain information about money judgments from the court's records and include that public information on its credit reports.

    Even if a creditor is not authorized to pull a report, a creditor that signs up with a credit reporting agency may submit accurate information about a money judgment to the agency. The question is whether it's worth the money and time, as well as the duties of verification and updating that come from reporting information to consumer credit bureaus.
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