Where Does The Creditor Get His Profits?

Creditors make their profits by collecting from their customers, not by reporting negative credit information. Because creditors recognize this "catch­22" situation, they will often agree to delete any negative listing upon settlement of the debt. You have to realize that creditors won't try to ruin a credit rating as a personal vendetta. It's strictly business. If it pays them to collect from and restore a rating to perfect, they will do this. Talk in terms of money, not principals or morals.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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