People who owe money often find it hard to understand what’s going on, like when the same debt is reported by more than one collection agency. If you’ve found yourself in this situation and are wondering how it’s possible (or legal) we’ll explain how this happens, why it matters, and what you can do about it.
Having debt show up on your credit report once is bad enough. But what if the same debt appears multiple times, unfairly dragging down your credit score? This frustrating situation, known as duplicate reporting, unfortunately does happen. Read on to understand why collection agencies sometimes report debts twice, how it impacts your credit, and most importantly, what you can do about it.
How Does Duplicate Reporting Occur?
People often report the same debt more than once for the following reasons:
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Human error – A debt collector accidentally submits the same information to credit bureaus twice Or the credit bureau makes a mistake entering the data
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Multiple accounts: If you owe money or have more than one account with the same creditor, they may be reported separately. This is fine unless more than one shows a balance.
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Debt sold to new collector – The original creditor reports the debt, then a collection agency they sold it to also reports it.
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Multiple collection agencies – Large debts often get assigned to multiple collectors. Each may report it without coordinating.
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One credit monitoring service doesn’t keep you up to date when a debt changes hands. Outdated info stays on your report.
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Intimidation tactics – Rarely, an unethical collector deliberately reports debts twice to pressure you.
Duplicate entries hurt your score and make it harder to get credit, no matter what the reason. But the good news is you can fix it!.
The Credit Score Impact
Duplicate reporting significantly damages your credit in two key ways:
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Lower scores – Each instance of a debt lowers your score. Multiple reports of the same debt cause an even larger drop.
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Higher perceived debts – Credit bureaus count each duplicate as a separate liability. So your total obligations appear higher.
This one-two punch makes you appear riskier to potential lenders. You’ll have a harder time getting approved for credit cards, loans, mortgages, and more. Plus, you’ll likely pay higher interest rates.
How to Dispute and Remove Duplicate Entries
If you find a debt reported multiple times on your credit report, here’s what to do:
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Check all three credit bureau reports – Get your free annual reports from Equifax, Experian, and TransUnion. Identify any duplicate entries.
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Dispute with credit bureaus – File dispute letters with each bureau that’s reporting the debt twice. Include proof it’s a duplicate.
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Contact debt collectors – Inform any collectors listed about the inaccurate duplicate reporting. Request they update or remove it.
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Send cease and desist letters – If a collector can’t prove they currently own the debt, send a cease and desist letter demanding they stop reporting it.
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Negotiate for removal – Offer to settle debts in exchange for collectors deleting their credit bureau entries. Get any agreements in writing.
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Consult credit repair help – Turn to credit counselors or lawyers if you need guidance managing a complex duplicate reporting situation.
With persistence and by asserting your consumer rights, you can get duplicate entries cleared up. Just don’t expect overnight results; the dispute process takes time.
Why Collection Agencies Sometimes Report Debts Twice
While accidental duplicate reporting does occur, some unscrupulous collectors deliberately report debts multiple times as a pressure tactic. Here’s why:
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Instill urgency to pay – Multiple entries make your credit situation look direr. This might spur you to pay debts quickly.
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Extra leverage negotiating – Collectors can offer to remove one entry in exchange for payment, but still use the other for leverage.
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Maximize late fees – Duplicate reports prolong delinquency statuses, allowing collectors to charge higher late fees.
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Improved commission incentives – Some agencies compensate collectors based on how many accounts they get to report.
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Lower credit scores – Damaged credit gives collectors more power over desperate borrowers.
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Limited repercussions – Weak consumer protection agency enforcement allows some collectors to get away with it.
While these tactics clearly violate consumer protection laws, collectors occasionally take the risk hoping you won’t have the time or resources to dispute duplicate entries. Don’t let them get away with it!
Your Rights Under the FCRA
You have legal protections that make duplicate reporting illegal under the Fair Credit Reporting Act (FCRA). Key rights include:
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Credit bureaus must ensure all reported information is accurate, current, and verifiable.
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Furnishers reporting data to bureaus must ensure it is accurate and complete.
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Outdated negative information must be removed after 7 years, or 10 years for bankruptcy.
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You can dispute any errors with credit bureaus and furnishers. They must investigate free of charge.
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Information confirmed to be inaccurate or unverifiable must be promptly corrected or deleted.
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You can sue credit bureaus and furnishers for damages caused by violations.
Don’t hesitate to remind collectors and credit bureaus of your rights if you encounter duplicate reporting issues. Take legal action with the help of a consumer law attorney if violations occurred.
How to Prevent Duplicate Reporting Issues
Stopping duplicate reporting before it happens is ideal. Here are some tips:
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Monitor your credit reports frequently for errors or changes.
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Maintain detailed records of all communication with creditors and collectors.
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Get any settlement or payment agreements in writing, specifying credit bureau reporting duties.
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If a debt changes collectors, follow-up to ensure old entries get removed.
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When providing info to collectors, only give the minimum legal requirements.
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Consider opting-out of prescreened credit offers to limit who can access your reports.
Remaining vigilant is the best way to protect your credit and prevent frustrating duplicate reporting situations.
The Bottom Line
Having a debt show up twice on your credit report is unacceptable. While accidental cases do occur, it also represents a potential violation of consumer protection laws. Regardless of the cause, you have every right to dispute duplicate entries and have them promptly removed. Arm yourself with knowledge of your rights and take proactive steps to prevent duplicate reporting for good credit health.
Why double reporting occurs
Double reporting typically happens due to:
- Information updates that didn’t happen: When a debt changes hands, the old collector may not have updated the credit report.
- System delays: Credit reporting systems may not show ownership changes right away.
- Unfortunately, some debt collectors may leave accounts on credit reports on purpose to put more pressure on consumers.
- Resold debt portfolios: When debts are bundled together and sold more than once, the right paperwork can get lost during the process.
Now let’s take a closer look at the legality involved…
Fair Credit Reporting Act (FCRA)
The FCRA prohibits reporting inaccurate information, including duplicate debt listings. If the same debt appears twice on your credit report:
- Debt collectors must be able to show proof that they are allowed to do their job.
- Information reported must be accurate and complete.
- Outdated information must be removed according to statutory timelines.
Fair Debt Collection Practices Act (FDCPA)
Under the FDCPA, collection agencies cannot:
- Misrepresent the amount or status of a debt.
- Use unfair practices to collect debts.
- Continue reporting debt information they know is disputed or incorrect.
The “One Debt, One Report” principle
Generally, the legal and ethical standard is that only the current owner or designated collector of a debt should be reporting it to credit bureaus. Multiple simultaneous reports of the same debt by different agencies typically violates consumer protection regulations.
Having the same debt reported multiple times can:
- Lower credit scores disproportionately.
- Create the appearance of higher total debt obligations.
- Cause confusion during credit applications.
- Make it harder to settle the debt (paying one collector doesn’t get rid of other reports right away)
Debt sales and assignments
When a debt goes unpaid, the original creditor has several options:
- Debt sales: The creditor can sell the debt to a collection agency and give up all rights to collect it.
- Assignments: The creditor could give a collection agency temporary collection rights while still owning the debt.
- Sequential collections: If one company fails to collect, the debt may be taken back and given to a different company to collect.
- Multiple agency strategy: Some creditors send the same debt to more than one agency at the same time. This happens less often, but it could be a problem.
What should I do if multiple collection agencies report on the same debt?
FAQ
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 two collection agencies collect on the same debt?
Two collection agency cannot collect on the same debt. A debt is only required to be paid one time. My credit card was sent by the credit card company to a collection agency. I had worked out a payment plan with this agency and was paying on time consistently.
Can a collection agency report old debt as new?
Collection agencies cannot report old debt as new. Legally, if a debt is sold or put into collections, that is the same thing as the original date. It may show up multiple times on your credit report with different open dates, but they must all retain the same delinquency date. Can a debt collector restart the clock on my old debt?.
Can a debt be listed twice on a credit report?
Consumers are often surprised when they pull their credit reports and find that one of their old debts is listed twice under different creditors’ names. How can this happen? It’s actually quite simple. In most cases, the debt is listed as both a charge-off and a collection on the individual’s credit reports.
Can a debt be a charge-off or a collection?
It’s actually quite simple. In most cases, the debt is listed as both a charge-off and a collection on the individual’s credit reports. It’s called a charge-off when the original creditor writes off the debt as uncollectible and sends the account to a collection agency.
What happens if a Debt Collector calls you?
And they are often successful. People are more threatened by a collection agency calling than the cable company, for example, and many pay up without a fight. But if the debt collector tries several times and still can’t get you to pay, he will probably sell the debt to someone else, maybe for 25 cents on the dollar.
Can a collection agency report the same debt multiple times?
The FCRA prohibits reporting inaccurate information, including duplicate debt listings. If the same debt appears twice on your credit report: Each debt collector must be able to verify they have the right to collect. Information reported must be accurate and complete.
What is the 777 rule with debt collectors?
The 777 rule governs how frequently companies can engage consumers to collect debt. The rule also stipulates the methods debt collectors can use when contacting debtors. The rule gets its name from a very specific stipulation. Companies aren’t legally allowed to call a consumer more than 7 times within 7 days.
Can 2 collection agencies try to collect on same debt?
4. Dispute Duplicate or Invalid Claims. If multiple agencies are claiming the same debt, only one of them has the legal right to collect.Jan 15, 2025
What are two things that debt collectors are not allowed to do?
Debt collectors cannot harass or abuse you. They cannot swear, threaten to illegally harm you or your property, threaten you with illegal actions, or falsely threaten you with actions they do not intend to take. They also cannot make repeated calls over a short period to annoy or harass you.