Creditors Rights Law
Can a creditor give a debtor bad credit?
In many cases, the creditor will give a bad credit rating by reporting a late payment or failure to pay to a credit reporting agency. A bad credit rating may affect the ability to take out a loan or to get credit cards, buy a house or even to rent an apartment. Creditors know that the best way for a consumer to clear up a bad credit rating is to pay the debts appearing on credit reports.