Thursday, June 10, 2010

Information You Need to Report Unpaid Bills to Credit Bureaus

Businesses that wish to report unpaid bills to the credit bureaus, must be members. The credit bureau may have you fill out an application. You also need the proper equipment that allows you to transmit the data. There are alternative ways that allow you to report to the bureaus.

Membership fees

    To report information to the credit bureaus, you must fill out a data furnisher agreement and pay the necessary fees. There are monthly fees as well.

Meet data requirements

    Any information you submit, transmit or send must be in the Metro 2 format. This is the format accepted by all of the credit reporting agencies, according to datalinxll.com.

Other requirements

    You also need an office set up in a designated space. Sometimes representatives of the credit bureaus visit businesses to make sure they are legitimate before approving them.

Another alternative

    Many small businesses such as doctor offices are not members of the credit reporting agencies (credit bureaus) because of the expensive fees. They turn over their delinquent receivables to collection agencies, many of whom are members of the credit bureaus. The collection agency reports the information to the credit bureaus.

Legal actions

    If you begin legal action against a debtor and you win a judgment, this becomes public record, which is recorded and indexed at the court house. A public record of this sort can appear on the debtor's credit file.

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