Do Creditors Make Their Profits From Collecting From Their Customers, Or 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 the debtor's credit rating as a personal vendetta. It's strictly business. If it pays them to collect from debtors and restore their rating to perfect, they will do this.

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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