Please review this list of frequently asked questions or contact us with any other questions you might have.
Can negative information be removed from my credit report?
If valid negative information can't be removed, what can I do?
How can errors and omissions be corrected?
How will the credit bureau respond to a dispute?
What if the response is no change to the report?
Do credit bureaus report bad checks?
How is my credit history reported?
How is bankruptcy reported to the credit bureaus?
What types of information are reported as positive data and what is reported as negative?
How can public record items be removed from a credit report?
Do consumers have the right to ask that their accounts not be sent for collection?
What if I have a question not on this list?
Q: Can negative information be removed from my credit report?
A: Yes. if the information is incorrect or outdated. The law says that if
negative information is correct it can remain for up to seven years. Chapter 7
bankruptcy can remain for up to ten years.
Q: If valid negative information can't be removed, what can I
do?
A: The law gives consumers the right to add a "100 word statement of dispute" to
their credit file. This gives the consumer a chance to explain negative items
when their credit report is obtained by a credit grantor.
Q: How can errors and omissions be corrected?
A: A consumer has the right to request an investigation of any information that
is incomplete, incorrect and out of date. These requests must be in writing. The
credit bureau will send you a dispute form along with your credit report. The
bureau must then investigate and verify the information. If the information is
not verified within a reasonable time period (30 days), it may be removed by
reason of doubt, however, if the information was correct it can be put back on
your report at a later time. If data is found to be incorrect, it must be
removed.
Q: How will the credit bureau respond to a dispute?
A: The credit reporting agency may respond with one of the following answers to
your dispute:
We have changed your credit file as requested.
Your credit file will not be changed because....
The party(s) involved did not respond so the information is being removed by
reason of default.
Q: What if the response is no change to the report?
A: You have the right to request that the information be re-investigated or you
can place a "100 word statement of dispute" in your report. You will also want
to contact the creditor directly and try to resolve the matter.
Q: Do credit bureaus report bad checks?
A: If you've ever had a checking account closed "with cause" you're likely to be
listed in the database for one of several organizations that compile this type
of information for subscribing banks, and other financial institutions. Before
you open a new account your bank will check with such an organization to
determine if there have been problems with your accounts in the past. There are
smaller versions of these organizations, but ChexSystems, and Telecredit are
more widely used in California.
ChexSystems is a deposit account verification service for financial institutions. The company itself is a subsidiary of Deluxe, the company known for printing checks for our checking accounts. This information does not appear on a credit report. Telecredit is another account verification service, used mainly in the retail world (merchants). Equifax owns Telecredit and checks that are not satisfied and are on their database will be reported on an Equifax credit report.
In order to get your name removed, you must negotiate with the originating financial institution. A consumer file with one of these companies is a negative file - only those who have had financial privileges terminated with cause are included. "Cause" includes overdraft abuse, ATM abuse, kiting, etc. Your name will stay in their files for five years. All account verification companies are subject to the rules of the Fair Credit Reporting Act, however, they don't share information with the credit bureaus (with the exception of Telecredit which is owned by Equifax). You can submit a written dispute or just a request for a report which will be provided free. When requesting a report include your name, social security #, driver's license #, and addresses used during the past 5 years to:
Chex Systems Consumer Relations
12005 Ford Road, Suite 600
Dallas, TX 75234
(800) 428-9623
Equifax Check Services
P.O. Box 30032
Tampa, FL 33630-3032
(800) 237-3826
Fax: (813)882-9150
Q: How is my credit history reported?
A: Your credit report will include a listing of various codes and abbreviations
along with an explanation to help you understand what it says about your payment
history. For example, accounts are usually described as 0 (open), I
(installment), or R (revolving). A number from 0-9 will rate the account as to
how promptly the account has been paid, with 0 meaning too new to rate, and 9
meaning "charge off".
"0" (zero) indicates the account is too new to rate.
"1" indicates the account is current or paid as agreed.
"9" indicates the account was written off as a bad debt or "charge off".
For example: an account listed as "R 9" means a revolving charge account which
was "charged off" as a bad debt.
Q: How is bankruptcy reported to the credit bureaus?
A. Each creditor may report the information differently. Bankruptcy will show up
on your credit report as a public record item and may remain on your report for
up to 10 years. This information may show up on your credit report as either
"charge off", "bankruptcy liquidation", or "discharged in bankruptcy". Some
creditors may not report it at all. Bankruptcy is a very serious step. It should
not be taken lightly as this information will remain on a credit record for a
long time and will affect future credit purchases. Creditors will view
bankruptcy as failure to pay debts.
Q: What types of information are reported as positive data and
what is reported as negative?
A: Other than your identifying information such as name, address, etc., the only
positive information on a credit report will be for accounts which are either
"paid satisfactorily" or "current account with no late payments". Non-rated
items may include inquiries, accounts closed by customer request, or refinance.
Negative items on a credit report include: late payments, collection
accounts, charge-offs, tax liens, repossessions, foreclosure, and bankruptcy.
Q: How can public record items be removed from a credit report?
A: If the item is incorrect, misleading or obsolete it can be disputed. If the
bureau cannot verify the disputed information, it must be deleted from your
credit report. If a lien or judgement has already been paid, but the report
reflects it as being unpaid, you should contact the original creditor and
request a discharge form. That discharge form is then submitted to the court
clerk to be recorded, and a copy of the recorded document sent to the credit
bureau as evidence that the lien or judgement has been satisfied. However, if
the item is correct it will remain on the report for seven years (chapter 7 for
10 years).
Q: Do consumers have the right to ask that their accounts
not be sent for collection?
A: Yes. If you are late in paying on your account you should contact the
creditor and ask to make an alternative payment plan. In some cases, you may be
able to make reduced monthly payments, or "skip" a payment without being
penalized. However, use of a special program will most often not guarantee a
current status on a credit report. The important thing is to contact creditors
promptly when there are problems and keep them informed.
If you are unable to resume full payments within the time allowed by the creditor that account will then show as being past due, and if not brought current may be turned over for collection to a third party. The fact that the debt is being handled by a collection agency will be reflected on a credit report. After October 1994 it will be required that the credit report indicate the name of the original creditor as well as the agency handling the debt.
Q: What if I have a question not on this list?
A. For more information and questions, please call 800-762-1811 or E-mail:
cccsnc@cccsnojuggle.org
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