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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Consumer Protection Law
Satisfied Customers: 111640
Experience:  Attorney experienced in commercial litigation.
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What is the obligation ( reporting purposes) of a creditor

Customer Question

What is the obligation (for credit reporting purposes) of a creditor who has charged off a debt but the consumer has since re-paid all of the debt? Does the creditor have the obligation of wiping out all references to the charged off amount on the consumer's
credit report and please provide as much FCRA documentation or other related documentation as you can?
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

Unfortunately, under the Fair Credit Reporting Act, the previous reports on the debt remain on the credit report. The only thing that the FCRA provides is that upon the debt being paid off, they must report that it was satisfied in full or satisfied by paying less. The prior reports on the account are not false reports and as such remain on the report for 7 years before they come off pursuant to the FCRA.

There is no provision under the FCRA to "expunge" a credit report for any reports that were valid and true at the time they were made. The FCRA only provides for removal of incorrect reports, meaning reports that were not correct at the time they were made. If the reports of delinquency were correct when they were made they need to remain unless you submit a challenge claiming they were incorrect and the creditor does not respond to your complaint.

So under the FCRA, you can send in a dispute to the credit bureaus that those reports are inaccurate and the debt is paid off and only if the creditor does not respond to your dispute to prove that when they filed the reports they were correct, would the credit bureaus remove them. It is worth a chance, since many creditors do not respond to the complaints from the credit bureaus, but that is your only chance.