Delete credit bureau entries – that’s how it works!

The credit check is part of the everyday business of the financial world. Anyone who wants to pay on account or take out a loan is usually screened for their liquidity. The credit bureau serves as a large collection center around information about payments made, their punctuality and other relevant details which could influence the financial environment.

A sensible system that can cause difficulties for citizens with high reliability. The stored data is not always correct or it is simply not taken into consideration that the receivables have been repaid. As a result threatens the unjustified gradation of creditworthiness, which is accompanied by numerous restrictions on loan offers and purchases.

An exceptional case that affects only a few? According to statistics, nearly every fourth consumer generates faulty data records.

Only a few of these entries are automatically detected and deleted without any direct contact with consumers

Incomplete information about the settlement of crediter or simply wrong entries are not uncommon. A problem case does not have to be based on massive mistakes. An accumulation of smaller cases is already enough to noticeably impair the individual rating of an individual and to achieve effects.

IMPORTANT: Such repercussions also include poorer credit conditions and the resulting increase in lending rates. Any consumer who wants to have a good credit rating, should delete erroneous and outdated credit bureau entries.

Locate errors and correct them quickly

Locate errors and correct them quickly

The causes of inaccurate or incorrect entries are manifold. Frequently, a temporal difference between cancellation of payment obligations is also responsible. For example, overdue loan receivables exceed the repayment date and are not considered completed, as in the case of failed settlement.

In addition, there are sheer mistakes in the amounts, even personal information is not always up to date. Each consumer therefore has the right once a year to request a free information from all institutions for the credit information.

Additional fees are only due from the second request. Therefore, a check on suspicion of a problem is always recommended.

TIP: Deleting a bad negative credit bureau entry takes some time. Therefore, it is advisable at least once a year to use the free self-information and to eliminate problems early.

If important personal information is missing or entries are incorrect, it can be insisted on rectification. According to § 35 Abs. 1 BDSG the legislator obligates all credit bureaus to this step – either by deleting the data sets or a specific correction of individual sections.

Delayed data and slow delivery

Delayed data and slow delivery

The credit bureau is not always the main responsible, if caused by inaccurate data unpleasant problems. Often, the bottleneck is already in the hands of companies that have a contract with the consumer.

According to § 28a Abs. 3 BDSG, it is stipulated by law that, after the expiry of one month at the latest, all changes regarding the payment of interest payments or the termination of a contract must be submitted. In this way a fair and timely consideration of negative as well as positive processes should be guaranteed.

If the specifications do not agree with the actual information regarding the claims, this often helps to get in direct contact with the company involved.

A friendly note with a request for transmission of the current contract status to the various credit rating agencies usually already promises success. However, owning the correction is still the safest method.

If a company confirms the fulfillment of all contractual conditions, the direct dispatch to the credit bureau can achieve a quick success.

If no further problems occur, the negative note should disappear in the future in the information or be regarded as done.

In the case of a loan, such a degree does not apply. According to credit bureau, the note is unnecessary in this respect and already results from the information about the contract. Of course, wrong or misleading details can creep in here as well.

More about your credit rights in our guide:

What rights do consumers have for loans?

Here, the same advice as in ordinary sales contracts applies: By agreement between consumers, the company and the credit agency, an agreement should be reached on existing problems.

Features are stored for up to three years

If a late claim is settled, the entry remains valid in this regard and is only assessed as completed. An early elimination by the credit bureau is not by the legislator in accordance with § 35 paragraph 2 sentence 2 No. 4 BDSG being considered. Datasets are thus fully retained for a period of three years. With few exceptions, no objections can be raised.

However: If the debt to be paid does not exceed an amount of 2000 €, you can delete a credit bureau entry.

Condition for this is a repayment of the obligation after six weeks at the latest and only if there is no court order or an enforcement order. If all these factors are given, credit bureau is authorized to remove the relevant data from the register of persons.

Deadlines and unclear demands

Deadlines and unclear demands

If the term of payment expires, the data may not be transmitted immediately to the credit bureau. This step takes place only as a final consequence, previous reminders remain unanswered to the consumer. Up to two times, the creditor must ask his debtor in writing to pay his debt. It sees the Federal Data Protection Act in § 28a BDSG that the time between first reminder and forwarding to credit bureau must be at least four weeks.

At the same time, the debtor must be informed of this intention. The purpose of this provision is that accidental violations of the prescribed limits does not directly lead to a devaluation in the ranking of the credit bureaus. Interpretations on their own behalf on the legal basis are not relevant and in no way binding.

Thus, if there is a dispute over an outstanding payment, a company may not act on its own initiative and pass on data to the credit bureau.

The time of forwarding is also relevant. In addition to the personal objection to the credit agency for unjustified claims and the order of execution is considered a key criterion.

If a company sends the information to the credit bureau before the expiry of the deadlines or the obligatory reminders, this process can be reversed.

A simple note in a letter also clarifies that the claims in the dispute were not accepted by both parties. The entry in question is therefore invalid in this situation. A consumer is right to have such a credit bureau entry to delete from the credit agency.

Consumer Credit Law: Companies threaten to threaten with an entry:

credit bureau – when companies threaten with an entry

Eliminate deadlocked conflicts

Eliminate deadlocked conflicts

If the credit rating does not address the issue or even refuses to remove dubious notices, the involvement of an arbitrator in mediation in disputes will help. The credit bureau even maintains a service for private customers for this occasion.

The so-called ombudsman is considered an impartial mediator, whose invocation is associated with no cost. After clarification of all facts, he promulgated a verdict by an arbitral award. If there are reasonable doubts about the correctness of the deposited information in credit bureau’s data records, these must be eliminated immediately or at least adjusted.

He is authorized to review any disagreements with reminders and contracts with companies. Likewise in the case of complaints, he may request the correction of entries. Although other institutes do not have their own ombudsman like credit bureau, they do have their own data protection officer.

If the personal request also falls on deaf ears, the competent data protection supervisory authority will step in as the next higher instance. Credit bureaus usually list the personnel responsible for such procedures under the Privacy category.

With a bit of patience and a well-written letter, you can delete any erroneous credit bureau entry. Of course, such matters can not be done in one day. Correcting your own data with the credit bureaus is a slow process, but an improved credit rating is worth the effort a hundredfold.