When a company makes loans to consumers, they know that a certain portion of those customers will not pay and ultimately become bad debts. Once an account becomes a bad, debt companies have procedures in place that allows them to report bad debt accounts to the credit bureau. Bad debt accounts are normally reported to the credit bureau at the end of the month using a program or system that is compatible with credit reporting agencies. In order to report, you'll need to have a business license and designated office space at your company used for credit reporting purposes.
Instructions
1. Call the credit reporting agencies you wish to submit data to and request a membership application. Upon approval, you will become a member of the credit bureau.
2. Get a data furnisher's agreement from the credit reporting agency and sign it and return to the agencies. This agreement outlines the terms and conditions for submitting data.
3. Convert data to be submitted. If your data is not in the Metro 2 format, you will need to have it converted. Contact a credit reporting service company, such as Data Linx (see Resources) and they will convert your data to the Metro 2 format.
4. Transmit your data to the credit reporting agencies. It will be sent using a secure https connection.
5. Call or email the agencies to verify that they have received and downloaded your information. After downloading is complete, they will be able to view the information on computer terminals.
