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
"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
How is credit repair 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.