Most people think a collector has to reach you before a debt can hit your credit. That’s not true — and the trick has a name: debt parking. Here’s what it is and what to do.
Quick Answer: Debt collectors can legally report debts to credit bureaus, but the FTC stopped Midwest Recovery Systems for “debt parking” fake debts worth $24 million. The company illegally placed bogus or questionable debts on credit reports to pressure consumers into paying during loan or job applications.The Federal Trade Commission has taken action against a …
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