Have you come across debt you do not recognize or have already paid off on your credit report? You may be a victim of a practice called “debt parking.” It is crucial to understand what debt parking is since it can have a devastating toll on your finances. Our Los Angeles debt relief team explains debt parking, how it can affect you, and the ways you can protect yourself.
Understanding Debt Parking
Debt parking is the sneaky practice where a debt collector places debts to credit reporting agencies without giving the consumer notice. These debts can be debts you have already paid off or debts that may not even belong to you! Debt parking is a criminal offense, and debt collectors found engaging in it could face criminal charges. Debt parking violates the FTC Act, the Fair Debt Collection Practices Act, and the Fair Credit Reporting Act.
Effects of Debt Parking
Since most victims of debt parking are unaware it is happening, the false debts reported will show as collection accounts on your credit score, which will impact your score significantly. At times, these unscrupulous debt collectors may say you owe thousands of dollars, drastically bringing down your credit score.
What You Can Do
One of the best defenses against debt parking is monitoring your credit. Keep yourself in the know by running annual credit score reports and examining these reports closely for suspicious activity. If you find that there are debts you do not recognize, it is highly recommended to consult with a debt relief lawyer immediately. A lawyer will be able to get to the core of the situation and provide you with ways to remedy the damages caused by debt parking.
Contact Our California Debt Relief Team Today
Learning that you have fallen victim to debt parking can be a frightening and disorienting experience. With over 20 years of experience, the team at Resnik Hayes Moradi LLP can provide you with the guidance and support you need to get your finances back on track.
If you notice suspicious activity on your credit report, do not hesitate to contact us today through our website or give us a call at (213) 344-0043 to schedule your risk-free consultation!