Collection Actions: 2.9.2.2 Settlement Language Requiring the Debt Collector to Completely Remove Disputed Debt from the Credit Report
A settlement of the debt can include a provision requiring the collector to seek to clean up the consumer’s credit report. Reproduced below is a sample settlement provision that requires the creditor to withdraw the entire report of the disputed debt. This withdrawal is sometimes referred to as a “hard delete.” The credit record will then be altogether silent about the debt and will not even provide a basis for another creditor, interested in the creditworthiness of the consumer, to inquire further. This approach is often the simplest solution for the consumer and the safest.