After disputing inaccurate information on your credit report, can the same account or trade line be reinserted without notice?
Under the Fair Credit Reporting Act (“FCRA”), the federal statute that was enacted to promote accuracy, fairness, and privacy of consumer information contained in the files of the credit reporting agencies, there are very specific procedures that a credit reporting agency must follow before reinserting negative information that had previously been removed from your credit file following a dispute.
Requirements for Reinserting Information on Your Credit Report
Specifically, the FCRA states that your information may not be reinserted on your credit file by the credit reporting agency unless the furnisher of the information certified that the information is, in fact, true and accurate. Furthermore, the consumer reporting agency is required to send the consumer written notification within five business days that the information has been reinserted on your account and provide contact information for the company that furnished the information. In other words, if you successfully disputed and had a delinquent account on your credit report removed, the credit reporting agency could only put the account back on your report if it received information from the company that the account was accurate and if it provided you with notice that the account was placed back on your report.
What If It Was Resubmitted Under a Different Name?
The credit reporting agency is required to maintain reasonable procedures to prevent the reappearance of a previously deleted account on your credit report. But unfortunately for many consumers, this is not always the case. One common situation when accounts often can reappear on your report is after a debt is sold. When a consumer accumulates debt and the original creditor tries to unsuccessfully collect on it, the debt is often sold to a third party. After being sold to the third party, or debt collector, the account can be reinserted on your credit report with a different name as a new collection account. While this practice is in violation of the FCRA, consumers need to be aware of this practice and must notify the credit reporting agency immediately of the credit report reinsertion. Just because the debt was sold to a new agency does not mean that it can be reported again as a new collection account, if you had it previously removed from your report.
Your Rights Under the FCRA
When the account reappears on your report, you have rights under the Fair Credit Reporting Act. Unfortunately, your rights still do require you to dispute the account again. The best way to dispute the account is to include the paperwork from your first dispute showing the account was previously deleted.
If you believe your rights have been violated and you would like the advice or assistance of counsel, contact SmithMarco P.C. for a complete free case review.