Can a debt collector report a paid debt as unpaid?

In Alaska, a debt collector cannot report a paid debt as unpaid. This is in accordance with Consumer Debt Defense Law, which states that any debts reported to credit bureaus must be accurate and not misleading. Debt collectors must report when a debt is paid in full or if there is an agreed payment plan in place. If a debt collector does report a paid debt as unpaid, the consumer can challenge the accuracy of the report. According to Consumer Debt Defense Law, consumers can file a complaint with the Alaska Department of Law or the Federal Trade Commission if a debt collector does report a paid debt as unpaid. Consumers should be sure to provide evidence to support their complaint, such as proof of payment or other documentation. If a consumer’s complaint is found to be valid, the debt collector may face legal penalties, such as being forced to pay monetary damages. A debt collector may also be required to stop any further debt collection activity or to provide a consumer with a copy of the correct credit report. In summary, Consumer Debt Defense Law in Alaska prohibits debt collectors from reporting a paid debt as unpaid. If a debt collector does report a paid debt as unpaid, the consumer can challenge the accuracy of the report, and may be able to receive damages or other forms of compensation from the debt collector.

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