Debt Reporting Services

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
23h
What will reporting to the agency do for you? It won’t get them to pay in most situations If you do not believe you will get paid another option you can do is send them a 1099 for that amount and the irs can chase them for taxes
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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    23h
    What will reporting to the agency do for you? It won’t get them to pay in most situations If you do not believe you will get paid another option you can do is send them a 1099 for that amount and the irs can chase them for taxes
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    • Allison Park
      OP
      Member since 2024 · 158 posts · 87 votes
      8h

      It will report late rent to the 3 credit bureaus to hold them accountable and hopefully will put pressure on them to pay. I am also working with an attorney on a formal judgement, but it is not automatically reported to credit bureaus. 1099 is an interesting idea, but it won't get me paid back.

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  • Diana Khan
    Attorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 300 posts · 112 votes
    8h
    Quote from @Allison Park:

    I am trying to recover debt from a former tenant and found a company called Front Lobby that allows you to report debt to the 3 credit bureaus for a fee.  Has anyone used this service before?  Looking for Pros / Coms and alternatives.

    @Allison Park, I’ve worked with landlords dealing with money still owed after a tenant moves out, and I usually separate the idea of reporting the debt from actually collecting it. Credit reporting may create some pressure, but it does not necessarily put money back in your hands.

    Before using a service like this, I’d want the amount owed to be very clearly documented, including the lease, payment history, notices, and how the final balance was calculated. I’d also look at whether a formal demand or collection process makes more sense based on the amount involved. Since you’re in North Carolina, I’d have someone familiar with the local collection rules look at that piece before deciding which route gives you the best chance of recovery.

    I’d be glad to stay connected, @Allison Park. I work with landlords on situations like this, and unfortunately the collection side can sometimes be harder than getting possession of the property back.

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    • Allison Park
      OP
      Member since 2024 · 158 posts · 87 votes
      8h

      The amount is large due to intentional property damage. I am working with an attorney for a judgement. I have heard collections agencies take 50%, so I thought this might be a route that was more cost effective.

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  • Michael Eskenasy
    Investor · Pacific Northwest · Member since 2026 · 511 posts · 286 votes
    8h
    I’d separate credit reporting from debt collection before choosing the tool. FrontLobby currently says it can report former-tenant rental debt to TransUnion, Equifax and Experian for a one-time fee, without requiring a court judgment. But once debt is furnished to a credit bureau, accuracy, documentation, updates and dispute handling matter under the FCRA. If the balance is cleanly documented, I’d compare FrontLobby against a collection agency that also reports, plus the small-claims/judgment route. The real question is less “which service reports it?” and more “which path gives me the best recovery leverage without creating a compliance headache?”
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  • David Krulac
    Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
    7h

    @Allison Park Different states have different laws, but here when we get a judgement (and we think we might actually get paid); the judgement can be recorded at the courthouse. And here at least the credit bureau pick up an all "recorded" judgements. Unrecorded judgements are usually not picked up by the dredit bureaus. At one point we belogned to the lcoal credit bureau as a member and could provide documentation directly to the bureau as a participating member.

    There are alos collection companies that will atempt to collect on a judgement. Their fee are high sometimes 50% of the amount collected. In our state, you can add 6% per year interst on top of your judgement.

    In one case we would not rent to a tenant with no credit history unless they provided a co-signer, who owned real estate in the same county. (I would accept adjoining counties as well.) The tenant lost their job and we evicted the tenant. The co-signer came to the court hearing and lied under oath that he never co-signed. We then presented the signed lease to the judge, who asked the co-signer if this was his signature? He admitted it was. We got the judgement naming both the tenant and the co-signer. I recorded the judgement at the courthouse and had to renew it after 5 years. Finally after about 8 years the co-signer wanted to refinance his house and could not until he paid me off plus 8 years of interest.

    In another case a single divorced person owned a business that failed after moving into my property, I evisted than the tenant came to the hearing and told the judge that they agreed with everything I told the judge. I got the verdict and recorded it at the courthouse. I had the tenant's former marital address and researching it, in another county, found that my tenant's name was still on the current deed as co-owner with the former spouse. I then recorded the judgement also in that other county, as it would attach to the tenant's former house, since their name was still on the deed. Several years later the spouce had an attorney contact me about releasing my lien against their clients personal residence. I agree as long as the former spouse paid the full amount plus the accrued interst. Guess what the former spouse's occupation was? ...attorney

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