What Can I Do if a Creditor Refuses to Remove Something on My Credit Report?

You may feel resentment when a creditor reports missed payments on your report, especially when other creditors allow you a longer grace period to pay a debt, but you probably can do nothing about a negative item. Unless the creditor reports false information, it can legally report something to the credit reporting bureaus.

Dispute Item

You can dispute anything on your credit report -- even legitimate items -- if you think the creditor cannot verify the accuracy of the data. For example, if a court loses record of your bankruptcy petition, you can dispute the item and the credit bureaus will have to remove the item from your report. Although the bureaus must investigate disputes within 30 days, they can take months to resolve complicated cases.

Suing the Creditor

If you really think the creditor cannot prove an item or believe the item to be false, but the creditor keeps reporting the erroneous data, you can sue the company. However, suing should be your last option because a lawsuit can take months or years to process and cost you thousands of dollars. Some consumers have set up websites or contacted news reporters to embarrass companies into correcting a falsely reported item. If you file a lawsuit, it will probably be for defamation of character.

Wait It Out

Most items, such as missed payments and collection accounts, disappear from your credit report within seven years, so if an item is close to falling off your report you may just want to wait. Credit inquiries affect your credit rating for only a year, and some items last longer than seven years. For example, bankruptcies usually stay for 10 years, and tax liens can remain forever. While you wait for an item to fall off your report, adding new positive accounts and eliminating debt eventually will make any negatives less important to your credit history.

Tip

Review your credit reports from all the national credit bureaus frequently, contact a creditor when you see a mistake and dispute the item with the credit bureaus. Ask the creditor to send you a universal data form if it agrees to update your report. A UDF is a document the creditor must file to a reporting bureau to update a person's credit history. If you feel the creditor or credit bureau reports erroneous information, you can file a complaint with the Federal Trade Commission, suggests Holden Lewis of Bankrate.com.