January 30, 2008
Federal Law and Credit Bureau Restrictions
Federal law dictates how long a credit bureaus may continue to report an item — seven years for most, 10 for bankruptcies. Other items such as delinquent student loans can linger for decades, and many states allow unsatisfied court judgments to be renewed every 10 years, meaning they can remain in a consumer's credit file indefinitely. Consumer advocates, though, say the same overburdening of the system that permits inaccuracies also interferes with the bureaus' ability to remove expired information properly. "Under the law, obsolete credit information is supposed to be off reports after seven years," said James Fishman, an attorney specializing in credit litigation.