Itâs âDebt Parkingâ: When Fake Debts End Up on Your Credit Report
The F.T.C. recently took its first legal action to stop the fraud. Consumers may not know the debts are on their reports until they apply for a loan.
Credit.Brian Britigan
Published Dec. 11, 2020Updated Feb. 19, 2021
Consider this unnerving situation: You apply for a loan only to learn that your credit report is marred by a delinquent debt â one that you have already paid or maybe donât recognize.
You could be a victim of unscrupulous debt collectors who have placed invalid or fake debts on your consumer credit reports to coerce you to pay them. The tactic is called illegal âdebt parking,â or sometimes âpassive debt collection.â
PHILADELPHIA – A New York company argues that a Montgomery County man has not properly pled a class action claim that it allegedly violated the Fair Debt Collection Practices Act in its efforts to collect debts for Bank of America.
Rafal Leszczynski (individually and on behalf of all others similarly situated) of Bala Cynwyd first filed suit in the U.S. District Court for the Eastern District of Pennsylvania on Sept. 8 versus D&A Services, LLC of Nyack, N.Y. and John Does 1-25.
“Some time prior to Feb. 3, 2020, an obligation was allegedly incurred to Bank of America N.A. Bank of America N.A. contracted with defendant D&A, a debt collector, who is now collecting the alleged debt. Defendants collect and attempt to collect debts incurred or alleged to have been incurred for personal, family or household purposes on behalf of creditors using the United States Postal Services, telephone and internet,” the suit said.