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Nick21
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Postby Nick21 » Sun Apr 05, 2015 5:57 pm

otter wrote:It's one thing to never report an account which is derogatory. It's another thing to report it and then remove it in exchange for payment.


Afaik it is completely legal, I couldn't find any law or FTC regulations that stipulate when an account is reported it can't get deleted or that a deletion requires legal justification. Everything seems to point that furnishers decide when and if to report and only that the info reported is accurate.

flan wrote:Right, but deleting it requires that you give a reason. All of the permissible reasons are variations of "we made a mistake" (wrong person, wrong amount, bookkeeping error, etc). There is not one for "we got paid, so who cares?". PFD is against the rules at the CRAs, but it's very hard to enforce, because collection agencies make so many mistakes and have legitimate reasons to delete accounts. (Also, the other thing that many CAs do, even the ones that don't do PFD, is not verify disputes filed against paid accounts, which has the same effect.)


You're referring to the dispute process which is different. To dispute info reported, you need to make a claim it is inaccurate so those choices reflect that. However if you talk to the furnisher directly and they simply agree to remove, they will submit the removal and no dispute is needed.

I agree with you both on the topic, PFD and goodwill deletions are questionable when related to the removal of accurate negatives but afaik it is within discretion for them to do so :/


flan
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Postby flan » Mon Apr 06, 2015 8:56 pm

Nick21 wrote:Afaik it is completely legal, I couldn't find any law or FTC regulations that stipulate when an account is reported it can't get deleted or that a deletion requires legal justification. Everything seems to point that furnishers decide when and if to report and only that the info reported is accurate.



You're referring to the dispute process which is different. To dispute info reported, you need to make a claim it is inaccurate so those choices reflect that. However if you talk to the furnisher directly and they simply agree to remove, they will submit the removal and no dispute is needed.

I agree with you both on the topic, PFD and goodwill deletions are questionable when related to the removal of accurate negatives but afaik it is within discretion for them to do so :/


Not according to the agreements you make when you become an information reporter. You agree that you will report only accurate information, which has a specific call out saying that PFD is not accurate information. "Only inaccurately reported accounts should be deleted. Paid derogatory accounts, such as collections or charge offs, should be reported as paid; they should not be deleted." is what my copy of the file format says, in about 50 places. You also have to provide a reason, none of which are "we don't care any more, we got our money."

A creditor or collection agency has no obligation to report information; they can, and do, say "Pay us, or we report". But, once they've reported, it's forbidden by both the agreement with the CRAs, and by federal regulation (which prohibits reporting information you know, suspect, or reasonably should know, to be false) to delete it.

There is a contractual obligation to respond to all disputes, even those you've been paid for, but that's widely ignored.

Nick21
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Postby Nick21 » Wed Apr 08, 2015 6:48 am

flan wrote:Not according to the agreements you make when you become an information reporter. You agree that you will report only accurate information, which has a specific call out saying that PFD is not accurate information. "Only inaccurately reported accounts should be deleted. Paid derogatory accounts, such as collections or charge offs, should be reported as paid; they should not be deleted." is what my copy of the file format says, in about 50 places. You also have to provide a reason, none of which are "we don't care any more, we got our money."

A creditor or collection agency has no obligation to report information; they can, and do, say "Pay us, or we report". But, once they've reported, it's forbidden by both the agreement with the CRAs, and by federal regulation (which prohibits reporting information you know, suspect, or reasonably should know, to be false) to delete it.

There is a contractual obligation to respond to all disputes, even those you've been paid for, but that's widely ignored.


I'm talking about the legal aspect. I quickly scanned the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq and I couldn't find the part that regulates the removal of the info by the furnisher? Or perhaps it's regulated in another act?

I also looked into that quote and it's regarding "instructions to customers who provide information." It seems more like this is what they discourage, agencies often provide guidance on certain topics especially when the law lacks clarity or doesn't address the issue. So while I agree with you, what does the law say on the topic?

flan
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Postby flan » Fri Apr 10, 2015 10:56 pm

Nick21 wrote:I'm talking about the legal aspect. I quickly scanned the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq and I couldn't find the part that regulates the removal of the info by the furnisher? Or perhaps it's regulated in another act?

I also looked into that quote and it's regarding "instructions to customers who provide information." It seems more like this is what they discourage, agencies often provide guidance on certain topics especially when the law lacks clarity or doesn't address the issue. So while I agree with you, what does the law say on the topic?


Remember, the act of deletion *is* a report of information, and the regulations that implement the FCRA require that information to be correct and complete. It's not simply not taking action; the reporter has already taken an action, by reporting the account.

To delete an account, you must report that the account was reported in error. Since in the case of a PFD, it was not, the reporter is reporting information THAT THEY KNOW TO BE FALSE. That is pretty clearly not reporting complete and accurate information, since information you know to be false is, by definition, not accurate.

JamesMS
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Postby JamesMS » Thu Apr 16, 2015 8:06 am

Whether it is legal or not I do not believe is the point. I believe the initial point was, should this happen. Some collections are able to be deleted off someone's report because the agency and the debtor made a deal, I pay you and you delete this. There's also people that when they see something negative they will dispute everything. In this case, it's crazy how many people get things removed this way, more so the debts that are true and accurate.
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