12-26-2012 11:51 AM - edited 12-26-2012 11:56 AM
I created a petition at whitehouse.gov to put additional regulation on the credit reporting agencies. I believe that they should be forced to use the same criteria when it comes to the amount of time a BK, or other derogatory crecit informaiton can be reported. This is specifically directed toward experian because they report bankruptcies for 10 years, and the other agencies only report them for 7.
Due to the unprecedented economic collapse many people have been forced to file for bankruptcy, and I believe that the negatively impacted credit ratings are one of the things that are hindering the economic recovery. I also find it interesting that the banks, and financial instutuitions that caused the economic crisis through irresponsible lending got a bailout, and a second chance, while the rest of us don't and are forced to live by the same rules that existed before the collapse.
My peititon is here. I need 150 signatures before it starts appearing on the whitehouse.gov website. We need 25,000 signatures in 30 days to get a white house response
I am no financial expert, so if someone believes they could create a better worded petition than mine, please do so, and post it here and I will sign yours.
For the record I have a bankcruptcy that will be removed from my equifax, and transunion credit reports next month, unfortunatly it will remain on experian for the next three years. I am much more financially responsible now with all accounts being paid on time, and money in savings.
thanks in advance
12-26-2012 12:08 PM
12-26-2012 07:56 PM
The Chapter 7 BKs remain on ALL credit reports for 10 years. I have a Ch 7 reporting to all 3 Bureaus and it is 9 yrs, 4 mos old.
Chap 13's fall off after 7 years on ALL bureaus if you successfully completed the plan. If you didn't complete the plan, it stays on ALL Bureaus for 10 years. I had a Chap 13 too and it fell off my ALL reports in October at the 7 year mark because I successfully finished my plan.
I think you will need to reword the petition so that it is accurate first before you'll get the signatures you want. If you have a BK on only some of your reports, something is incorrect and you will need to dispute it.
I'm not sure that I even understand why this is a petition. All 3 CRA's say the same thing (although the wording for Transuion is vague):
1.) 7 years for a discharged chapter 13
2.) 10 years for dismissed or discharged chapter 7's and 13's.
I beleive the reporting reason for a chapter 13 is that in this case the debtor is repaying back all or a portion of their debt, and in a chapter 7 all debt is discharged without payment. So this petition, IMO, is trying to put in place what is already in place. Do all of the CRA's play fairly? Nope they don't and as a matter of fact dealing with them to follwo their own rules can be an uphill battle.
I believe this petition is not a revelation at all, therefore it really has no basis. According to what you stated, in this case, Experian is correct to report it for 10 years if it is a discharged/dismissed chapter 7. If this is not correct and you need some help, why not contact the CFPB as they have been very helpful to consumers who are having legitimate reporting problems?
Now if you want to start a petition to change the reporting of 7 years on all derogatories then I'm with you, but this one, IMO, is just not practical.
12-27-2012 05:42 AM
The 10 year period for Bankruptcy is in Section 605 of the FCRA, it's not something the CRAs came up with. I can't explain the 7 year period for Ch13 but perhaps someone else can.
605. Requirements relating to information contained in consumer reports
[15 U.S.C. §1681c]
Information excluded from consumer reports. Except as authorized under subsection (b)
of this section, no consumer reporting agency may make any consumer report containing
any of the following items of information:
(1) Cases under title 11 [United States Code] or under the Bankruptcy Act that, from the
date of entry of the order for relief or the date of adjudication, as the case may be,
antedate the report by more than 10 years.
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