For all of the hard work consumers and credit repair companies put in to addressing
negative items on credit files, a gentler kinder approach might yield the same results.
The so-called “Goodwill deletion” is becoming part of a consumer’s arsenal when trying
to clear their credit reports of blemishes. What is a Goodwill deletion and when, if ever,
does it work?
A Goodwill deletion is simply the practice of asking your lender, a credit report data
furnisher, to cut you some slack and remove an accurate, but negative, credit file entry.
Normally the Goodwill deletion strategy is best worked on low level delinquencies, such
as a 30-day late payment. And, you must keep in mind that you’re not arguing the
negative item is incorrect but are arguing, more so, that the it’s an anomaly.
Late payments have evolved over the years and in today’s credit reporting environment
a 30-day delinquency has a much cleaner definition than in years past. According to the
Credit Reporting Resource Guide (CRRG), a credit industry publication that provides
credit reporting guidelines to data furnishers, “The clock for a 30-day delinquency starts
30 days after the due date, as opposed to the billing date.” What this means is if your
credit report contains a 30-day delinquency then payment was not received until at least
30 days after the statement due date. In years past the definition was more ambiguous
and some furnishers could have reported you delinquent if your payment was received
even one day after the due date suggesting the definition of a “30-day late” was really 1
to 30 days late.
In the credit card environment a 30-day late payment means the consumer was given
51 days to make their minimum payment, but didn’t do so. The 51 days is a result
of the confluence between the CRRG guidelines and the Credit Card Accountability
Responsibility and Disclosure Act of 2009 (CARD Act). The CARD Act mandates credit
card issuers set the payment due date no less than 21 days from the date they mail you
your statement. That 21 days plus the CRRG’s “30 day past the due date” requirement
gives you 51 days to make a payment.
What this all means is that it’s unlikely that the consumer missed a payment because of
something like business or vacation travel. This is why the Goodwill deletion strategy
requires more of a “catch more bees with honey” approach. Does the practice work? The
practice absolutely works. But, you’re going to be more successful if you have little or no
record of past delinquencies and you’re a good customer (revenue).
The Goodwill strategy also works better when you take your case directly to the data
furnisher rather than going through the credit reporting agencies. There isn’t an option
when you use online disputes for “I really was late, I’d just like to ask my lender to delete
it.” And frankly, the credit bureaus frown on those types of deletions because they argue
the result is a less representative credit report and credit score.
Michael B. Citron is an internationally known public speaker and author. He lectures for professional associations worldwide. Michael is a serial entrepreneur who is dedicated to living the American dream, and helping others to do the same. His role at DisputeSuite.com has placed him in the spotlight of the credit repair industry. DisputeSuite is the largest provider of technology and education services to the industry, and has been a catalyst in the forward movement to standardize the credit repair industry.
P.S. DisputeSuite provides a variety of solutions for your credit repair business. From engaging custom websites, to dispute processing services, to a robust CRM with automations and portals, DisputeSuite is a One-Stop Shop to making your Credit Repair Business A Success! Let’s chat today to discover the best plan for you: 727-877-6812 or support@disputesuite.com
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