Is there any harm in a Compliance Condition Code being on your credit report? I don't believe it would impact scores at all, but is it a bad "look" to have it on there? I've been trying to obtain a goodwill adjustment for a late payment for quite some time with a creditor. Usually I get back denial letters, and on occasion I get one saying that they placed a Compliance Condition Code on my account which can be removed if I write in a request stating such. I've had it removed twice thus far, but today received a letter stating that they had placed another on there. Not sure if I should just leave it on there at this point since evidently my future GW requests may result in it being placed back on, anyway.
Here's what the letter stated regarding the CCC, "To reflect your concerns, we placed a Compliance Condition Code on your credit report soon after we received your inquiry. This code explains to potential credit grantors that we completed the investigation of your dispute and that you may not agree with the results. We can request for this code to be removed, if you agree that the information on your credit report is accurate."
It's a bit annoying as I'm obviously not "disputing" anything - I make it very clear in my GW letters that I know I made a mistake and am simply requesting the late payment to be removed; in no way am I suggesting that the late payment is wrongly represented.
Any feedback on this topic is welcomed. Thanks everyone.
Compliance Condition Codes allow for the reporting of a conditon that is required for legal compliance with some provison of law, usually the FCRA or FCBA.
It includes account closed at consumer request, account information disputed by consumer (FCRA or FCBA), account disputed and dispute now resolved.
If you did not dispute, then the reporting of such is inaccurate and should be removed.
A pending dispute can, for example, affect scoring, as it removes certain OC account information from the scoring until the condition code is update to show that the dispute is resolved.
I would contact the furnisher and inform them that you wish the reporting removed.
Can it also be requested that they stop doing this as it will be the 3rd time they've done it and I've had to request to have it removed?
I would send them a letter advising that since it has become a repeated issue, you now consider it to be intentional reporting of inaccurate information, which is a violation of FCRA 623(a)(1), and any further occurence will be reported to the CFPB.
Gotcha, thanks for that advice. Sending a letter requesting this on its own is probably the best bet; I doubt my chances of receiving a GW adjustment would be nearly as good if I included that exerpt in one of my GW request letters!