Most collection agencies today report your slow-paying customers to either Equifax or Trans Union, Canada’s best known credit bureaus. While this collection tool does result in some added recoveries, the extra income can be easily offset due to inaccurate credit reporting.
To maximize recoveries with credit reports, credit grantors (you) can help by providing your collection agency with the following data upon assignment of a case:
- Full name of customer
- Address or last known address (in full)
- Date of birth and/or SIN#
- Original date of debt
- Date of first delinquency
The reason this information is so vital is so the agency can ensure your collection ends up on your customers bureau. If this data is not provided, both credit bureaus will not accept the file into their system. Credit bureaus must accurately reflect the status of a collection item. Information such as charge date and delinquency date play a huge roll in accurate credit reports as it impacts the statute of limitations, or how long a credit bureau is allowed to report the negative data.
So when your collection agency requests this data from you, it is not because they want to make more work for you, it is because they must strive to be a compliant furnisher of data to the credit bureau. Otherwise, consumers and corporate customers alike have the right to challenge the report and even seek legal damages if erroneous credit reporting damages them financially.
In addition to accurate data, another way to maximize recovery is to check to see if your agency report to Canada’s other regional credit bureaus. There are several other credit reporting agencies in Canada, including: Credifax, DNB Canada, Lumbermen’s, Sterling West, and Group Echo.
Accurate credit reporting can greatly enhance the recovery of your money. Make sure the collection agency you choose is reporting to as many of these credit bureaus as possible.