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It’s ‘Debt Parking’: When Fake Debts End Up on Your Credit Report
The F.T.C. recently took its first legal action to stop the fraud. Consumers may not know the debts are on their reports until they apply for a loan.
Credit.Brian Britigan
Published Dec. 11, 2020Updated Feb. 19, 2021
Consider this unnerving situation: You apply for a loan only to learn that your credit report is marred by a delinquent debt — one that you have already paid or maybe don’t recognize.
You could be a victim of unscrupulous debt collectors who have placed invalid or fake debts on your consumer credit reports to coerce you to pay them. The tactic is called illegal “debt parking,” or sometimes “passive debt collection.” ....

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