Re-insertion of Disputed Information on your Credit Report

Often, a consumer will dispute something on their credit report and successfully get undesirable information removed from their report. However, sometimes that item will get re-reported to the credit bureaus and re-inserted into credit reports.  Sometimes it’s the same creditor or collector, but sometimes, it happens when a third party buys the debt and begins reporting it.  The big concern is, can they do this?  Is this legal?

The Fair Credit Reporting Act (FCRA) is the law that governs all companies and businesses regarding credit reporting.   The FCRA provides that when a consumer disputes inaccurate information, and the credit bureaus or the creditor agree that it is inaccurate information, it must be removed from the credit report, never to return again.  However, the FCRA provides that information can get re-inserted to a credit file if the creditor certifies to the credit reporting agency that the information is indeed correct.  In turn, the credit reporting agency is obligated to notify the consumer that the information has been re-reported and will reappear on credit reports in the future.

However, the consumer is often left unaware, received no warning, and finds out at the wrong time that information they once thought was forever gone has reared its ugly head again.  The big issue here is whether the information is accurate and correct.  The FCRA includes many mandates and instructions, but the law’s core focus is protecting consumers from false information being conveyed about them.  When we apply for credit, insurance, or a job, the big concern we have is that we won’t get it because of false, inaccurate information being reported about us.  So the law protects us from this false, inaccurate information.  When information about us is false or inaccurate or even misleading, the law mandates that we are entitled to have that investigated and corrected, never to return.  If the credit bureaus or creditors fail at these tasks, we have rights to pursue.  But suppose the information they are reporting is true and accurate. In that case, regardless of whether the credit bureaus investigated within 30 days or whether they re-inserted information without warning, there is no legal attack that can be made.

If you have experienced re-reporting of false information on your credit reports, contact SmithMarco, P.C., for a completely free case review.

Larry Smith

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