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Topics addressed on September 3, 2008:
Court judgments on small business credit reports
I am a debt collector and am enforcing a judgment against a corporation. The judgment is listed on their credit report in the public records section. If and when they do pay off the judgment, what is the proper procedure for getting the judgment removed from their credit report? Do I send the corporation the "satisfaction of judgment" document so they can send it to the credit bureaus to remove the record. Or, should I just send the documentation showing they've paid off the judgment directly to the credit bureaus myself?
I presume that you are referring to the corporation’s business credit report, not the individual credit report of the business owner. Experian also provides business credit reports, and while they are similar, there are some differences in the way information is reported and when it will be deleted.
A judgment on an Experian business credit report will remain for seven years. Once paid, the status of the judgment will be updated to show that it was satisfied. It will not be deleted from the business credit report immediately. Rather, it will remain with the updated status for the remainder of the five year timeframe.
Civil judgments that appear on an individual consumer’s credit report also remain for seven years from the filing date. When an individual judgment is paid the status is updated to show that it is satisfied. Like the business credit report, the judgment will show the new status for the remainder of the time until it is deleted.
In both instances, the status would be updated automatically based on the court records. In this instance, your collection agency may report directly to Experian that the judgment was satisfied, which also would result in the entry being updated on the business credit report.
Thanks for asking.
- The "Ask Experian" team