We’re having a run-in with a client. They failed to pay us for 9 months. They just finally paid up. We are not doing any further business with them.
However, it occurred to me a couple of weeks ago to check their credit rating. I checked it on Experian, and it wasn’t good. Had I been smart enough to do this at the outset of our job, we might have avoided some pain.
This also got me thinking–I should report them to the credit agencies. It seems like the socially responsible thing to do, so that other potential contractors, etc., will know what they’re getting into.
How does one go about doing this?
I’m sure someone with more direct knowledge will be along shortly to fill in the details, but IIRC from another thread.
You have to register with the bureaus to be able to post reports and that of course costs $$. So the question becomes is it worth spending the money to add another ding to their report? And as for notice to other potential creditors, it will only benefit them if they check it.
They will background check your business and determine whether you can and should be reporting credit information.
You will have to ‘qualify’ and ‘apply’ to be a subscriber with their membership and security teams.
Usually only makes sense when a significant volume of account data will be submitted by you and/or you intend to pull (buy) a number of credit reports on potential clients. Then you have a whole other hassle in declining credit and the federal laws that mandate what you must do as a lender to stay in compliance with the FCRA.
On small scales, it ain’t worth it. You open yourself to terrible risk once you report credit data. As a data furnisher, you must reply to disputes, etc. Whole crap load of stuff.
And after you jump through all the hoops to get on their list of approved information providers, you have to submit your data electronically in a very specific format.
Bottom line, report them to the Better Business Bureau. That’s much easier for an individual/small business to do.