Public record refers to information made generally available by federal, state and county courts. Derogatory is the term used to describe a credit account with a history of late payments. Common types of public records that may become derogatory are state or federal tax liens, civil court judgements and bankruptcies.
Time Limits
A derogatory public record typically remains on an individual's credit sheet for seven years. Chapter 7 bankruptcy will stay visible for ten.
Erroneous Records
If a person can provide evidence that certain derogatory entries are placed in error, he is legally entitled to have them removed. Doing this requires sending a written request for removal to the alleged creditor, along with the stated proof.
Legal Recourse
Failure to remove a derogatory posting that has been proven false, is cause for legal action, per the Fair Credit Reporting Act (FCRA). If an alleged account is not cleared under these conditions, the accused party may file a complaint with the Federal Trade Commission and sue the negligent company for up to $1,000.
Garnished Wages
Debts settled against wages also have a derogatory effect on a person's credit report. Garnishments, by themselves are considered derogatory, as they imply that obtaining payment by other means was unsuccessful.
Child Support
As stated, delinquency of any civil judgement is considered derogatory. Overdue child support may stop a company from issuing credit.
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