Winning a dispute with the credit agencies or getting a lender to correct an error does not totally leave you in the clear. Deleted items can return to your credit report legally, sometimes because of human error. Ultimate responsibility for reinserted items goes to the credit agencies, who should warn you immediately when this happens.
Identification
A deleted item can return to your credit report -- known as a reinserted negative. This most likely happens when you dispute an item and win the argument; however, later that the credit bureaus realize the deleted item was in fact legitimate. When an agency reinserts a negative item, it must notify you within five days or else you can request a deletion of the reinserted item.
Potential Lawsuit
Whenever dealing with the credit bureaus you can consider the possibility of a lawsuit. Because the agencies automate most of the dispute process, there is a chance the bureaus might accidentally reinsert a deleted item even when you have ironclad proof that it does not belong to you. In one case, the bureaus mixed up the reports of two people with similar names multiple times and the plaintiff had to sue for each successful dispute.
Considerations
If a disputed item reappears on your report, you probably do not need to threaten a lawsuit and quote the Fair Credit Reporting Act right away. Instead, reply to their notification of a reinserted negative item with a statement of why you feel this is an error and copies of evidence to prove your point. If the five-day limit has passed, you usually just need to quote the date the agency reinserted the item and how you never received notice of it.
Tip
Keep files on any interaction with a creditor or credit agency during the dispute process because if you go to court, you will need as much evidence as possible to win your case. Mail items with return receipt requested to guarantee that the bureau or creditor reads your dispute. Also, plan out future lending with the potential for the dispute process to take months. Some lenders may help you dispute a reinserted item if it gets in the way of your loan approval.
Warning
Consult an attorney should you come to the point of suing the credit bureaus. This article is not legal advice and an attorney can direct the proper way to pursue a case. Suing the credit bureaus can take years.
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