Fair Credit Reporting: 14.3.4 Practical Reasons Not to Respond to a Threat to Report a Debt
There is another important reason not to respond to creditor or collector threats concerning credit reporting. In almost every case, the reason a consumer is delinquent on a debt is that the consumer does not have enough money to pay all their obligations. Consumers must decide which debts to pay first. The collector’s threats are intended to get the consumer to pay its creditor’s debt first. This means that the benefits of paying debt “A” (the debt involving the threats) must be offset by any damage to not paying debt “B” because the money to pay debt “B” is now directed to debt “A.”