The online disputes system, otherwise known as the "Expedited Dispute Resolution" Section 611a(8). The key phrase to note is;
"the agency shall not be required to comply with paragraphs (2), (6), and (7) with respect to that dispute" if they delete the tradeline within 3 days."
Paragraph 2 states that it is mandatory for the CRA to forward your dispute and all of the associated records you present to the creditor.
Paragraph 6 states that the CRA must supply you with written proof and results of the dispute process.
Paragraph 7 states that the CRA must supply you with the process of verification on demand from the person making the dispute.
The problem is that the law isn't detailed enough to say permanently delete or suppress the derogatory item. The CRA can perform a "soft delete" for about a month and then the derogatory item can recur when the creditor reports it again in the subsequent 30 day cycle. This is because the CRA's aren't obliged to tell the creditor you disputed it at all!
This compounds their defense strategy of attrition and delay by allowing the consumer to think they are getting a permanent deletion, but it is only temporary solution. Since the creditor never knew it was removed, they will report it again and the CRA will put it right back on your report. Moreover, you have no proof the investigation or the supposed results ever took place that you would have received if the dispute was done by mail by a reputable credit repair company like HTDI Financial.
I have always filed my disputes in writing and kept a copy, I then attach the answer to the complaint when I recieve it.
Outstanding
Keeping a copy of all records coming in an out is imperative ... especially in the credit repair process. Kudos goodnatured on your astuteness and attention to detail.
credit
Gosh!! This can be very discouraging for the 'consumer'. Thinking you successfully took care of a debt and really din't. If the debt does come back on your CR, do the dates ( SOL, etc) stay the same?
Response
If a negative item is deleted and then put back on it's called a re-insertion. These are quite rare as when they revised the Fair Credit Reporting Act in 2003 (Fair and Accurate Credit Transactions Act) it was made more difficult for a negative item to reappear once it has been deleted. Should a re-insertion occur the consumer should be notified within five days by the bureau reposting the derogatory.
If it does reinsert then all the dates should correspond with when it was originally placed on the report.
credit
Thanks for the clarification, BRIAN. I would hate for a debt to 're-appear' on my CR and have the dates change to the SECOND time it was reported.