Can a lender change or delete accurate negative information previously reported by him

The answer to the question as to whether or not a lender can change the negative information that he has reported to credit bureau even though it is accurate has a double sided answer.  Strictly speaking a creditor can report and update any information that he likes.  If he has reported negative information in the past that is accurate he can change and updated during the next reporting cycle.

So while a lender can easily change accurate negative information that he has reported on consumers credit report he does not usually do this.  In fact it would be very uncommon and rare for any lender to change accurate negative information on consumers credit report.  First of all the reporting and sharing of consumer data by credit bureaus and the creditors is governed by the Fair Credit Reporting Act which is a federal law.  According to the standards and practices sets down by this law it would probably be illegal for a lender to change accurate negative information on consumers credit report for any reason whatsoever.

Not withstanding the legal repercussions it would also be unethical on the part of the lender to employ such a practice.  A credit report serves as a person’s financial reference.  Lenders and creditors rely on the credit history of a person to be able to make accurate lending decisions.  The purpose of a credit report as a measure of consumers credit worthiness would be worthless if creditors started manipulating the information report to the credit bureaus.  Participation of creditors in the credit reporting system is completely voluntary.  Businesses have the option report to anyone or all of the credit bureaus or not report to them at all.  Over the years the credit agencies have made more and more efforts so as to ensure that the information present on credit reports of a consumer is accurate.  The algorithms and systems used to determine consumer credit scores have been made more refined so as to correctly reflect the risk of consumer poses as a borrower.

So while in theory a lender could probably change the information on a person’s credit report even though it is accurate it would be illegal and unethical for the person to do so. More so ever if a creditor were to do this it would probably be a violation of the contract with whichever credit agencies they report to and be sufficient grounds for cancelling the business’s ability to report or receive information from the credit bureaus.

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