Is a bank obligated to report information on your credit report?

Question

Is a bank obligated or required to report information on your credit report?

I was reading this question and I thought that banks did not have to report information about a loan to the credit reporting bureaus if they did not want to but I can't find any supporting evidence for that position.

Is a bank obligated or required to report information on your credit report?

Is there any incentive to the banks to report information on your credit report? They already know how the loan they are servicing is going so they won't gain additional information from doing so.

I'd love sources on any answers if at all possible.

Answer 1

In the United States, nobody is obligated to report information on your to the credit bureaus. Doing so is an incentive they hold to keep you honest. If repossession of an item isn't an option, lenders have little recourse besides hurting your credit. It isn't all that hard to declare bankruptcy, and lenders aren't allowed to threaten (or act on) you with harm.

http://www.pueblo.gsa.gov/cic_text/money/fair-credit/fair-crd.htm

Furthermore, companies aren't even required to report accurately it seems. The law simply says that you can have it corrected, not that companies are bound for accuracy in the first place.