Epic Contributor
Posts: 25,584
Registered: ‎03-19-2007
Re: Collection Agency says it CANNOT delete?
[ Edited ]

This is a legal mailstrom!


Technically and procedurally, the CAs are totally correct in stating grounds for why they WONT  delete.  So any CA that tells you this is NOT being dishonest.

But what they dont tell you is that it is NOT a specific provision of law.  So, no, it is NOT illegal for them to delete.


When a CA signs up with a CRA to do credit reporting with the CRA, they enter into a reporting contract.  One of the major provisions in the reproting agreement between the credtitor/CA is that they agree to comply with the reporting guidlelines published jointly by the CRAs in a document know as the "Credit Reporting Resources Guide (c) 2006, CDIA." 


They have legal contract with the CRAs to comply with these credit reporting standards.  One standard that is repeatedly, and clearly stated under numerous sections of this agreement, is that anyone reporting information to them should not delete prior, accurate informtion based on the fact that payment of debt has occured.


But this apparently clear and express provision of the reporting agreement has absolutely no followup provisions, and thus NO teeth..  If a credtitor/CA does delete prior reporting based on payment offered to them, all the credtior/CA has to do is to report the deletion.  They dont have to offfer an reasons.  THe CRA must accept it, and never questions the underlying reasons.  No CRA has EVER challenged, to my knowledge, the violation of the reporting agreement by even asking, yet alone requiring, the reporting party to supplement any reason for their deletion.

Bottom line, the credtitor/CA can properly invoke this is a legal reason for denial of a PFD/GW, but they can just as easily ignore it with NO peril.

Their incentive is fueled by greed, not compliance with the reporting guidelines.