Can Bad Credit be Deleted?
Yes, it can. Despite the fervent
proclamations of bureaucrats and credit bureaus everywhere, a
simple fact remains: negative credit listings are deleted from
peoples' credit reports by the thousands each and every day.
A few years ago, an attorney from
Lexington
Law visited with a regulatory agency for a casual
conversation with two agents. The Agency's office, as a matter
of course, believed the credit bureaus' claim that bad credit
couldn't be deleted. The visiting Lexington attorney asked, "How
many negative listings would you have to see deleted from
consumer credit reports before you would believe that bad credit
can be deleted: ten? fifty? a hundred? one thousand?" The agents
responded with only blank stares.
"How about 50,000 deleted listings, would that convince you?"
continued the Lexington attorney. From his briefcase he pulled a
stack of papers six inches high.
"In these pages, we have listed the permanent deletion of over
50,000. listings from our clients' files in the last two
years alone," he explained. The agents pulled the stack across
the conference table and began to pick through the pages, taking
in the massive list.
"But have you deleted any bankruptcies?" shot back one of the
agents, "we know that bankruptcies can't be deleted." The
Lexington attorney leaned across the table and ran his finger
down the first page.
"There's one deleted bankruptcy... and, there's another,... and
another,... and another. Should I go on?" asked the Lexington
attorney.
The agents sat back in their chairs. "You know," began the
junior agent, "I have this one listing on my credit report that
simply must belong to somebody else..."
How is it possible?
The Fair Credit Reporting Act (FCRA) allows a
consumer to challenge the information on his credit report on
the basis of "completeness and accuracy." When a consumer files
a dispute, the credit bureaus must contact the source of the
credit information (the creditor) and confirm that the
information is accurate, verifiable, and not obsolete. In some
circumstances, the credit bureau is required to go beyond a
simple verification of the creditor's own computer record. If,
within 30 days, the credit bureau has not received verification
from the creditor, then the credit bureau must promptly delete
the credit listing.
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