Disputing Collection Accounts on Your Credit Report (FCRA)

How a dispute works

Under 15 U.S.C. § 1681i(a)(1), when you dispute an item directly with a consumer reporting agency, it must conduct a reasonable reinvestigation for free. It generally has 30 days from receiving your dispute, and up to 15 more days if you send additional information during that period. The agency must also notify the company that furnished the information.

What happens to unverified information

Under § 1681i(a)(5)(A), if the disputed item is found to be inaccurate or incomplete, or cannot be verified, the agency must promptly delete it or modify it as appropriate. A furnisher that receives notice of the dispute must investigate and report its results under § 1681s-2(b). If the furnisher confirms the information is accurate, it can stay on the report.

How long collections can be reported

Under 15 U.S.C. § 1681c(a)(4) and (c), most collection accounts may not be reported for more than seven years. The seven years run from 180 days after the start of the delinquency that led to the collection. A later sale of the debt does not restart that period.

Pay-for-delete

Pay-for-delete is a settlement in which the collector agrees to ask the credit bureaus to delete the account in exchange for payment. No law requires a collector to agree, and some collectors say their agreements with the credit bureaus do not allow deleting accurate information. If a collector does agree, get the terms in writing before you pay, and keep proof of payment.

What credit scores weigh

FICO, a major credit score developer, publishes the general weight of each factor in its scores: payment history 35%, amounts owed 30%, length of credit history 15%, new credit 10% and credit mix 10%. Other scoring models weigh factors differently.

Debt collection is governed by federal law and state law. State statutes of limitations, licensing rules and court procedures differ, so check your state’s rules and talk to a licensed attorney about an active case.

Researching disputing collection accounts on your credit report in your state

To research disputing collection accounts on your credit report for a real matter, start with the primary sources. For example, read the statute, the rule and the documents in your own file. Then look for recent appellate decisions from your state, because they control how local courts read the law. After that, compare what you found with the federal rules that may also apply. Our state procedures guide and the Research Center can help you find and check each source.

Sources and further reading

Official sources used on this page:

• law.cornell.edu
• law.cornell.edu
• law.cornell.edu

Related reading on Lawtopolis:

• Debt Validation Under the FDCPA (15 U.S.C. § 1692g)
• Debt Buying and Debt Collection: How It Works
• Time-Barred Debt and the Statute of Limitations