In 2017, stricter practice requirements were outlined by the National Consumer Assistance Plan or NCAP that reshaped how data sent to credit bureaus had to be reported. Following these requirements led to a decrease in the amount of collection accounts that were actually reported, and a large number of accounts being removed. The requirements that most affected these accounts are:

  • “More frequent, detailed and accurate reporting of collections accounts, including reflecting when those accounts have been paid;”


  • “A prohibition against reporting debts that did not arise from an agreement to pay, or from medical collections less than 180 days old;”


  • “The removal of collections accounts that did not arise from a contract or agreement to pay;”


  • “Permission to report any account only when there is sufficient information to link the account with an individual’s credit files.” (i.e. a name, address and other information for identification, including a Social Security number or birth date.)

Despite the stricter requirements, the amount of household debt continues to be on the rise, leading to more and more accounts being turned over for collections. Clearly, the risk of an account being reported to the credit bureaus affects how likely recovery is on that account. Without that risk, or leverage, companies like Cedar Financial are having to rethink their strategies in order to continue with successful recovery rates.

Agencies like Cedar Financial follow compliance guidelines under a strict eye. By educating clients on the requirements prior to submission of accounts, the chances of missing information are drastically lowered, and accounts are more likely to be qualified to submit to credit bureaus. Cedar Financial also trains all of its’ adjusters to open up the conversation to consumers about budgeting, managing money, and options to help go against the rise in household debt.

For further information on the NCAP please visit:

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