When a consumer relocates internationally, whether permanently or for an extended period, their existing accounts must continue to be reported accurately and lawfully. A consumer’s physical location does not relieve them of their financial obligations, nor does it negate a data furnisher’s responsibility under the Fair Credit Reporting Act (FCRA) to ensure that account data remains complete, up to date, and not misleading.
Why Reporting Still Matters
Consumers who move abroad often retain financial ties in the U.S., including:
- Active loans or lines of credit
- U.S. credit cards
- Ongoing payment obligations
- Long-standing credit histories
Credit reporting for these accounts continues to play a role in evaluating creditworthiness for both U.S.-based and international transactions—especially if the consumer returns or maintains financial activity in the U.S.
Steps for Reporting Accounts of Consumers Living Abroad
1. Continue Reporting as Usual
If the account remains active:
- Report balances, scheduled payments, and payment history as normal.
- Do not modify the consumer’s address to reflect the international location if it cannot be properly supported by the credit reporting system.
Most U.S. credit reporting systems do not support non-U.S. addresses in standard tradeline fields. If the international address cannot be processed, retain the most recent U.S. address on file.
2. Indicate Foreign Status if Necessary
If the consumer has notified the creditor of their relocation and it affects the account, consider applying a Special Comment Code if the relocation affects repayment ability or contact information. Otherwise, no special indicator is required solely due to international residence.
3. Do Not Close the Account Automatically
The consumer’s move abroad is not grounds for account closure unless:
- The account terms require U.S. residence
- The consumer requests closure
- The creditor determines a heightened risk due to the change in location
Delinquency and FCRA Considerations
If the consumer falls behind on payments while abroad:
- Continue to report delinquency status, DOFD, and collection activity per standard procedures.
- Do not delay or alter reporting due to the consumer’s location.
- Ensure all adverse information is reported accurately and timely, in line with FCRA regulations.
Collection and Contact Considerations
Attempting to contact or collect from a consumer internationally may present legal and logistical challenges. However, this does not change reporting requirements. Furnishers must:
- Continue to report activity within the monthly reporting cycle
- Avoid aggressive or illegal collection practices, especially across borders
- Maintain accurate documentation of consumer communications and contact preferences
Impact on the Consumer’s Credit Report
- Preserves Credit History
Ongoing reporting helps the consumer maintain their U.S. credit profile, even while living abroad. - Supports Future Credit Applications
Consumers who return to the U.S. or apply for credit from U.S.-based institutions abroad benefit from a continuous credit record. - Avoids Misreporting or Inactivity Flags
Accounts should not appear “dormant” or “closed” solely due to international relocation.
Conclusion
A consumer’s move to another country does not change the fundamental obligation to report their accounts accurately. Data furnishers should continue to update account status and payment activity as usual, without interruption, while remaining compliant with the FCRA. This ensures that consumers retain the full value of their credit histories and that reporting remains reliable, lawful, and complete.