Deletion letters refer to letters directly from lenders, credit card banks or collectors specifically instructing the credit bureau to delete bad credit from the consumer credit report or, advising the consumer of the credit card bank or collectors commitment to instruct the credit bureau to delete bad credit from the consumer credit report.
Based on our research, there is no question that deletion letters obtained directly from lender, bank, credit card bank or collector represent the most effective way to permanently remove bad credit reporting from the credit report and credit bureau history:
- Deletion letters are the only guaranteed way to permanently remove bad credit.
- Deletion letters are the only way to insure services such as rapid re-score are successful.
- Deletion letters, unlike disputes to credit bureaus, remove bad credit in days versus months, or not at all.
Obtaining deletion letters however proved problematic.
Closed accounts
On accounts that were delinquent but since paid in full and closed, it was extremely difficult to obtain the creditors cooperation in providing a deletion letter. In these cases it appears more likely that a dispute sent directly to the credit bureau requesting the deletion based on unverifiable information is more likely to succeed. This is particularly effective on accounts no longer being actively reported.
Open/Active accounts: Current
On accounts that were delinquent, but are now current and a balance is owed, requesting a deletion based on the mistake or inadvertence of the lender, bank, or credit card company was marginally successful. Leveraging the existing relationship and explaining that the customer needs the deletion letter did prove successful sometimes. When the request fails, a dispute can be sent to the credit bureau requesting the deletion of the bad credit but we found this to rarely be successful. It is recommended that the consumer work around the bad credit reported on these types of accounts if the request for deletion letter and credit bureau dispute letter were both unsuccessful.
Open/Active accounts: Late
On currently past due accounts, negotiating to pay the entire balance in exchange for a deletion letter was successful, particularly on collection accounts. It is recommended that the consumer either use the services of a professional or arm themselves with the letter templates contained in the collection account guide.
Because securing deletion letters directly from lenders, credit card banks or collectors is critical and difficult for most consumers, we have included professionals that are expert at obtaining deletion letters from lenders, credit card banks and collectors within our professional services network.
