Myth vs. Reality: What You Can and Cannot Remove From Your Credit Report, and When You May Have a Lawsuit

Myths vs Reality Credit Reporting
Consumer Law, Consumer Protection Law, Credit Report Issues No Comments

Social media is full of advice about “cleaning” your credit report, much of it dangerously inaccurate. Every day, people are told they can dispute any negative information and have it instantly removed. Others claim you can sue the credit bureaus simply because you don’t like what’s on your report.
The truth? Your rights under the Fair Credit Reporting Act (FCRA) absolutely give you power, but not in the way social media “credit hacks” suggest.
This myth-busting guide breaks down what is real, what is false, and what to do when a credit reporting agency gets it wrong.

MYTH #1: “You can remove any negative information from your credit report if you dispute it.”

Reality: You can remove negative information only if it’s inaccurate, incomplete, or outdated.

The FCRA requires credit reporting agencies (CRAs), like Equifax, Experian, and TransUnion, to report information accurately. They do not have to remove negative information simply because it’s hurting your credit score.

You can have negative items removed if:

  • The information does not belong to you (mixed file, identity theft, reporting another person’s account)
  • The information is factually incorrect (wrong balance, wrong dates, wrong status)
  • The information is being reported longer than legally allowed (e.g., most negative items must fall off after 7 years)
  • The creditor cannot verify the information after your dispute
  • The CRA failed to investigate properly

You cannot remove the item just because it’s negative if:

  • The account is accurate
  • The debt is yours
  • The late payment or charge-off actually happened
  • The reporting is within the legal time limits

Legitimate negative information must legally remain on your report, even if you dispute it 100 times.

MYTH #2: “The credit bureaus must delete anything you dispute.”

Reality: They must investigate your dispute, but only delete it if it’s wrong or unverifiable.

When you file a dispute, the credit bureau has 30-45 days to:

  1. Contact the furnisher (the company that supplied the information)
  2. Review the evidence
  3. Correct, update, or delete information that can’t be verified

But here’s the part social media skips:
They are allowed to keep the information if the furnisher verifies it, even if the verification is wrong.
They can reject disputes they consider frivolous or repetitive.
When that happens, you may need legal intervention to fix an error on your credit report. We can help.

MYTH #3: “Credit repair companies have special tools to delete accurate information.”

Reality: No company can delete accurate, lawfully reported information, not even the bureaus themselves.

Any company promising to delete bankruptcies, late payments, charge-offs, repossessions, or collections simply because you hired them is misleading you.
Under the FCRA, accurate and verifiable information is allowed to stay.
The only time negative items can be removed is when they violate the law.

MYTH #4: “If your dispute is denied, you’re stuck with the error.”

Reality: A denied dispute may actually strengthen your legal claim.

If you dispute an error and the credit bureau or furnisher refuses to correct it, even after you provide evidence, you may now have grounds for a lawsuit.

You may have a claim if:

  • The CRA failed to conduct a reasonable investigation
  • The furnisher verified false information
  • You are the victim of identity theft
  • Your file was mixed with someone else’s
  • The CRA reinserted an item that they previously removed
  • The error caused harm, such as:
    • Being denied credit, housing, or employment
    • Paying higher interest rates
    • Emotional distress
    • Lost financial opportunities

A dispute denial is not the end; it’s often the beginning of your legal rights.

MYTH #5: “You can sue a credit reporting agency just because something negative is on your report.”

Reality: You can sue only when the agency violates the FCRA.

Negative information alone, even if truly damaging, is not grounds for a lawsuit if it is accurate and legally reported.

You may have a lawsuit if the bureau or furnisher:

  • Reports information that belongs to someone else
  • Refuses to remove proven incorrect information
  • Fails to fix errors after a proper dispute
  • Fails to mark accounts as disputed
  • Does not investigate disputes reasonably
  • Provides outdated or legally obsolete information
  • Mishandles identity theft documentation
  • Causes you measurable harm through negligence

When these violations occur, you can recover:

  • Money damages
  • Attorney fees
  • Court costs
  • Punitive damages in serious cases

And you do not pay anything out of pocket to hire an FCRA attorney; the credit reporting agency pays the fees if you win.

GET A FREE CASE REVIEW

The Most Common Errors That Are Removable

Here are real situations where the law is on your side:

  • Accounts that aren’t yours (mixed files)
  • Identity theft records
  • Incorrect dates, balances, or account statuses
  • Duplicate accounts
  • Hard inquiries you didn’t authorize
  • Public records that do not belong to you
  • Criminal records attached to your credit file (rare, but it happens)
  • Re-aged accounts are used to extend how long a debt stays on your report

These are all fixable and often lawsuit-worthy if not corrected after a dispute.

The Items You Cannot Remove If They’re Accurate

Even though social media says otherwise, the following cannot be deleted simply because they hurt your score:

  • Accurate late payments
  • Accurate charge-offs
  • Legitimate collections
  • Repossessions
  • Foreclosures
  • Bankruptcies within the reporting window
  • Student loan defaults (if correct)
  • Accurate judgments

Everything has a legal reporting time limit, but accuracy is what controls whether the item stays.

When Should You Talk to a Consumer Protection Attorney?

You should reach out if:

  • You disputed an error, and it was not fixed
  • You were denied housing, credit, or employment because of inaccurate information
  • A credit bureau mixed your file with another person
  • You are a victim of identity theft
  • Your report shows duplicate accounts
  • A bureau or furnisher ignored your evidence
  • An item was deleted and then reinserted without proper notice

These situations aren’t just frustrating; they are potential legal violations.
At Francis Mailman Soumilas, P.C., we help consumers across the U.S. fix inaccurate reports and pursue compensation when credit bureaus break the law.

Bottom Line

You do have the power to remove negative information from your credit report, but only when it is wrong, outdated, or unverifiable.

You do not have the power to erase accurate information just because it’s negative.
But when a credit reporting agency refuses to fix an error or violates the FCRA, you may have a strong lawsuit, and a team of attorneys ready to help.
GET A FREE CASE REVIEW – 1-877-735-8600