Can a Credit Bureau remove and reinstate a disputed item?

Yes, a Credit Bureau can remove and reinstate a disputed item. This is known as a re-insertion and it is a fairly common occurrence. It is important to always keep a close eye on your credit reports to stay informed about any changes.

Let’s dive into why this happens so frequently. When you send a dispute letter to the credit reporting agency (CRA), they have 30 days to either provide evidence that the disputed item is accurate or remove it from your report. However, the CRA doesn’t gather the evidence themselves; they rely on the creditor to provide it. If the creditor fails to respond within the 30-day period, the CRA is obligated to remove the item from your report.

But here’s the catch: sometimes the evidence arrives a few days or weeks later, claiming to prove the accuracy of the original entry. In such cases, the Credit Bureau will start reporting the item again. Ideally, the Credit Bureau should notify you in writing within 5 days if an item is reinserted, but unfortunately, this doesn’t always happen. This failure to notify is actually a violation of the Fair Credit Reporting Act (FCRA).

If you encounter a re-insertion, don’t panic. There are steps you can take to fight against it. While the book provides detailed information in Chapter 2 on how to handle re-insertions, we encourage you to join the Credit Secrets program for practical guidance and actionable strategies to navigate these situations effectively. Take control of your credit and gain the knowledge and tools you need to overcome challenges like re-insertions. Together, we can improve your financial future.