Legal Question in Credit and Debt Law in California
Hello. I have a question in reference to negative credit entries on my report. I pulled an annual report and on there list one account for AT&T that was sent to collections thus being paid off sometime ago. The entry is still listed on my report. I understand collection agencies have the ability to remove/delete entries however when speaking with the representative and two supervisors they both state all that they do is just list it as paid and do not remove the entry and that it would stay on there. Other companies that I may have had items go to collections were able to take it right off with no problems then seeing it reflected no later than 60 days if that.
Is this so with most companies that they do not delete negative entries after an item is paid?
1 Answer from Attorneys
You are correct. From a very technical perspective, the debt collectors - whether third parties or even AT&T have a contractual agreement with the credit reporting bureaus that they will accurately report information - both positive and negative. As such, because it did go to collections, the collection agency must report that, and then report that it has been paid in full. From the date it was paid in full, it will be reported for a period of seven years, then come off your credit report. The companies which have removed items are technically violating their agreement with the credit reporting agencies, but given the volume of credit data submitted each month, it's no surprise that the collection agents who are breaking their agreement with the reporting bureau aren't getting caught or in trouble. The reasons some do and some down boils down to company policy, AND also depends on when you repaid the debt. If you offer to repay it but only if they remove the item from your report, then they are more likely to do so. Once you have repaid them, they gain nothing by removing it from your report, and so it's not likely to happen. Sorry - wish I had better news.
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