Removing an Item from CR
Date: Fri, 05/07/2010 - 04:22
For example, I had a cash advance company removed the balance owed was wrong. Who's to say they don't try and put it back on my credit report.
They can put a debt back on your credit rating, and as far as I
They can put a debt back on your credit rating, and as far as I know, a creditor doesn't have to prove the reporting agencies that the debt is legit.
Quote: In other words, what prevents unethical collection agenc
Quote:
In other words, what prevents unethical collection agencies from contuining to put items back on. |
The FCRA (Fair Credit Reporting Act) requires data furnishers to report factual and accurate information. It is against the law for any company to report information that is not accurate.
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Or does the credit bureau remember that it was taken off once and to not put it on again. |
The credit bureaus do keep track of items that were previously on your credit report.
A data furnisher (Creditor, CA, etc) can always modify its data. When an item has been removed from your credit report, it is possible for them to reinsert it. However, the lender usually has to make a written statement and request the bureau to reinsert it. Upon review and the merits of the request, the bureau may reinsert data that it has previously deleted.
**Note that that the bureau's "memory" goes by the account number previously being reported. A data furnisher could establish a new account number for you and simply "add" a new account to your credit report very easily. However that practice is not allowed per CDIA rules, and if caught the item would be removed and the furnisher could face legal repercussions or other reprimands.
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For example, I had a cash advance company removed the balance owed was wrong. Who's to say they don't try and put it back on my credit report. |
One more quick note pertaining to "reinsertions" versus "adding"
One more quick note pertaining to "reinsertions" versus "adding" items to your credit report....
There are varying levels of collection and companies who could report the balance on your credit report. The OC (original creditor) may report the account; the OC may also send the account to subsequent CAs (collection agencies), who then also may report the account separately from the OC under their own company name.
If the OC has previously removed its own tradeline from your credit, then for them to put it back on would be considered a reinsertion.
However, if the OC sends the account to a CA, the CA could very easily put the debt back on your credit report under their own name. Which is apart from the OC and would not be considered a reinsertion. (To you it is, because it's the same debt; but technically, it's a different company and a new collection item that is being reported. The bureau's "memory" would not correlate the new CA account with the previously deleted OC account, and so it would be added as a new account.)
Again, if this were to happen, you've got the FCRA in the background saying that anything on your credit report has to be accurate. If a subsequent CA reports the balance to the bureaus, and it is not accurate, you could ultimately file suit against them.