Victory!.....I think

[strive4credit]

After going back and forth with a local credit union...PFFCU...in Phila. They are going to finally remove a 30 day late from Oct '10.

I had two accounts with them. A signature loan and a credit card. The late was hurting my score so I got it removed from two reports (not mine) but the only cra reporting the 30 day late was guess who..........Experian!

I offered to pay off my credit card in exchange for removal of the interests charges, most of the late fees ever accrued, and finally that 30 day late!

This is the same 30 day late their "Lawyer" said would be illegal to remove. It cost me a pretty penny but once it is removed, I am going to get it put back on the other reports. (How easy is that? I need a letter for that.)

My scores should be cool then. My experian score was the lowest at 718. What kind of jump could I expect?

[Lian]

Well, it is most likely a victory, but in actuality they could re-report it under certain conditions.

First, a little background on the law and procedures in this area. Their statements to you that it was illegal for them to delete prior reporting of the late were incorrect.

FCRA 623(a)(1) states that it is illegal to report information that is knowingly inaccurate. that is not the issue here. This section of the statute relates to the reporting of inaccurate information and does not equate to a prohibition against deletion of accurate information. The other pertinent provision of the statute is section 623(a)(2), which places a duty on a furnisher of information to update information previously reported if it subsequently changes such that it is no longer accurate or complete. That is an updating provision, and once again, not a deletion restriction.

The restriction against deletion of the reporting of accurate information stems only from instructions set forth in the standard credit reporting manual used by each of the CRAs, and incorporated into their reporting agreements. ("Credit Reporting Resource Guide'" (c), CDIA).

In that manual, it is repeated stated that the prior reporting of accurate information is not to be deleted based on subsequent payment of the debt. This is a guide, and not a statutory or regulatory provision. However, it is quite often used, with relish, by furnishers of information to support their "prohibition" against deletion of accurately reported information.

As for their ability, once information is deleted from your CR, to reinsert the information in your credit file, this is regulated under FCRA 611(a)(5)(B). It applies only to the reinsertion of information that was deleted based on a dispute over its accuracy or completeness. It permits the reinsertion of the information only if the furnisher provides a "certification of accuracy of the information." That is simply a certification that the information is complete and accurate. While this section does not strictly apply to situations where deletion did not result from a finding of inaccuracy or incompleteness through the dispute process, it is the only section of the statute that relates to reinsertion of deleted information. If this provisions were to be extended, it would imply that it would require a certification of its accuracy. They could do that if no resolution of its inaccuracy was found through the dispute process.

Practically, I highly doubt they would do that. They have little to gain by its reinsertion, and a lot of expected headache from such an action. Deletion was done for whatever reason, most likely just to be rid of you. I don't see them gaining anything by ticking you off again.. But yes, technically I believe that it would not be impermissible for them to do so.

I would not raise the issue with them. It appears that the dawg is ded. If they really want to be rid of you, they could simply delete the entire account from your credit file, causing you to lose it entirely in your credit scoring, including its age of accounts. You were fortunate that they did not delete the entire account, and only deleted the negative information. I would not give them cause to just do an entire account deletion.