32 lines
1.4 KiB
Markdown
32 lines
1.4 KiB
Markdown
# DRE Credit Reporting — Legal Analysis
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## Can DRE report debtors to credit bureaus?
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### Consumer debts (individuals)
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**Yes** — DRE can report to Equifax, Experian, TransUnion but must:
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- Send FDCPA validation notice first
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- Wait 30-day dispute window before reporting
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- Comply with FCRA § 1681s-2 furnisher duties (accuracy, investigation on dispute)
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- Follow Texas § 392.202 dispute process (30-day investigation)
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- Maintain $10K surety bond with Texas SOS (§ 392.101)
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### B2B debts — corporate debtors
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**No** — FCRA defines "consumer" as an individual (§ 1681a(c)). Consumer CRAs don't maintain business credit files. Use Dun & Bradstreet, Experian Business, or Equifax Business instead.
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### B2B debts — personal guarantors
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**Yes** — individuals who signed personal guarantees are "consumers" under FCRA (per FTC Advisory Opinion to Tatelbaum). All FCRA/FDCPA rules apply.
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### B2B debts — sole proprietors
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**Yes** — a sole proprietor is an individual ("consumer"). Same rules as consumer debts.
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### Liability risks
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- Incorrect reporting → actual damages + attorney fees + punitive
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- Failure to investigate dispute → $100-$1,000 per violation (FCRA § 1681n)
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- Texas Finance Code § 392.403: $4K/violation
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### Business credit bureaus (recommended for B2B)
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- Dun & Bradstreet Global Trade Exchange (free)
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- Experian Business
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- Equifax Business
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- No FCRA/FDCPA restrictions, no 7-year limitation
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