Jul
07
2010

Court judgment on credit report for non-sufficient funds check

Dear Experian,

I just paid off an outstanding debt for a non-sufficient funds check written in 2005. I recently found out that a warrant had been issued because of the nonpayment. I have a copy of the court dismissal and receipt for the restitution. How can I be assured this will be removed from my credit report?

- RAA

 

Dear RAA,

Non-sufficient funds checks don’t automatically appear in a credit report. Instead, they would first be reported to a debit bureau, which is similar to a credit reporting company but maintains information about bank accounts rather than debts.

Additional action usually is necessary before the check becomes part of your credit history. The most common action is for the bank to turn the amount over to a collection agency. At that point, it becomes a debt you owe and so will be reported to the national credit reporting companies and will be included in your credit report.

The second possible action is suing the person to recover the insufficient funds and any additional penalties or fees. A public record of the civil court judgment would then be added to your credit report. That sounds like what happened in your instance.

You may want to verify that the judgment has been updated to show that it was paid or dismissed. The public record entry in your credit report should reflect the status of the judgment in the court’s records. If it does not, you can request a verification of the status.

Even if the judgment is paid or dismissed, the public record item or the collection account will remain in your credit report for seven years. Your credit report is a history and that judgment is a part of your history.

Thanks for asking.

- The “Ask Experian” team

Our policies for Ask Experian:

The information contained in Ask Experian is for educational purposes only and is not legal advice. You should consult your own attorney or seek specific advice from a legal professional regarding your particular situation. Please understand that Experian policies change over time. Posts reflect Experian policy at the time of writing. While maintained for your information, archived posts may not reflect current Experian policy. The Ask Experian team cannot respond to each question individually. However, if your question is of interest to a wide audience of consumers, the Experian team will include it in a future post.