Credit BLOCK vs. REMOVAL of negative items

[johnnypinaz]

What is the difference between a block and removal or fraudulent credit items? I noticed a block is supposed to take 4 business days and a removal up to 30 days.

Is a block more permanent because it cant come back? Is there any disadvantage to a block?

Thanks

[RobertEG]

An identity theft block of information prevents the CRA from including that information in any credit report they issue to anyone other than the consumer.

Blocks dont require proof of identity theft, they require only that the assertion by supported by a sworn report before a law enforcement agency.

It does not delete the information from the consumer's credit file.

The FCRA also bars a CRA from including in credit reports made avaliblable to others any adverse information which has passed its credit report exclusion period, such as collections with a DOFD of more than 7 yrs plus 180 days prior, and inquiries for a consumer's credit report which were made to offer credit or insurance not initiated by the consumer.  Again, the information is blocked from credit reports, but not deleted from the consumer's credit file.

Removal is actual deletion of the information from the consumer's credit file.

That usually must come from the furnisher.

There are two notable exceptions.  One is when a dispute is filed with the CRA and the disputed information is unverifiable.  Then the CRA must delete the information until verification is provided by the furnisher.  The other is the internal housekeeping done by the CRAs, where they subjectively delete old accounts that have been closed for approx ten years,

Neither a block nor a deletion is normally permanent.  Information blocked as a result of identity theft can be "unblocked" if subsequently shown not to have resulted from identity theft.  However, there is no defined process under the FCRA for reviewing identity theft blocks, so they normally just stay in force. They are pretty much permanent.

If the block involves information asserted to have resulted from identity theft, I see no disadvantage to blocking it from your CR.

Information blocked due to passage of a CR exclusion date can still be obtained in very limited situations, as set forth in FCRA 605(b), such as when a consumer applies for credit in the amount of $150K or more.  Information deleted based on non-verification of a dispute can be reinserted if the furnisher provides a pre-certifcation ot it accuracy.

[johnnypinaz]

Perfect info, thanks!

One last thing, when looking at my own report, will I see a notation when something is blocked, or I will not even see the items myself?

This would either be thorough myfico.com or directly through one of the TU, EQ or EX websites. Not a 3rd party site.

thanks

[RobertEG]

They are not prohibited from including the blocked info from reports they issue to the consumer, but I have never requested my own report under such a situation, so dont know for sure how they handle such info.

It is quite possible that, for convenience, their blocking software may simply block its inclusion in all credit reports. 

Creidt reports are always subjective determinations of what information is chosen to be included.

For example, many commercial credit reports choose not to include the reported DOFD, which is important info for determining the exclusion date of any reported collection or charge-off.

For that reason, the FCRA provides the consumer the right to request any info in their actual credit file by sending a request to the CRA under FCRA 609(a)(1).

Such requests currently require a fee of $11.00. 

[johnnypinaz]

I pull all 3 reports individually and also my Fico daily. I just put 2 blocks in on my Equifax report. They were previously challenged to be removed but came back verifiable and the company isnt working with me... so I put them in as blocks. Ill let you know how it turns out and what I see from Equifax.com, myfico and also privacy matters if they do get blocked.

thanks

[RobertEG]

Also, if you are having problems getting info from a creditor that relates to identity theft info, you can also use the police report to require them to provide all business records in their possession related to the account.  That will give you facts that you can use to challenge the information.

Just send them a copy of the police report along with proof of identity, and request all such records under the provisions of FCRA 609(e).

A powerful mini-discovery right that is usually available only through the courts, but provided for under the FCRA.

[andydallas1]

I didn't realize that a creditor could "verify" an account at anytime and have it reinstated on your report,,,so basically they have as many "btes at the apple" as they want,,,they could send something to 'verify" an account 2 years after it was disputed and the CRA would accept it??

I'm not talking about identity theft, simple items that are disputed

[InvincibleSummer3]

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@andydallas1 wrote:

I didn't realize that a creditor could "verify" an account at anytime and have it reinstated on your report,,,so basically they have as many "btes at the apple" as they want,,,they could send something to 'verify" an account 2 years after it was disputed and the CRA would accept it??

I'm not talking about identity theft, simple items that are disputed

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Yep. You are supposed to be notified within 5 days of reinsertion but yes, they can reinstate provided the debt was still within CTRP.