Pre-1996 Amendment: 1681c[a][4]: Spence v. TRW

This Folder Examines the Differing Time Periods That the Various Types of Credit Data May be Retained in Your Credit File. The Related Re-Aging Folder Also Contained in This Forum Examines the Known, Deceptive Trade Practice of Tampering With the Reporting to Avoid Automated Purge Mechanisms at the Bureaus.
David A. Szwak

Pre-1996 Amendment: 1681c[a][4]: Spence v. TRW

Postby David A. Szwak » Sat Jan 14, 2006 9:55 pm

Spence v. TRW, Inc.
92 F.3d 380
C.A.6 (Mich.),1996.
Aug 13, 1996

When the $461 hospital debt was reported to TRW in June of 1990, TRW did not know that the debt had been placed for collection five years earlier. When TRW released its residential mortgage credit report on September 17, 1992, the placement of the debt for collection antedated the report by more than seven years. Again, however, TRW was unaware of this fact.

If Mr. Spence had "directly conveyed" to TRW the pertinent information on when the hospital debt had been placed for collection (see 15 U.S.C. § 1681i(a)), TRW would presumably have deleted the item as obsolete pursuant to § 1681c(a)(4). Mr. Spence failed to do so, however, [FN1] and on the facts presented we are satisfied that this failure was fatal to the claim asserted in Count V of the complaint.


FN1. Mr. Spence did send TRW a communication dated June 2, 1992, in which he demanded reinvestigation of "any and all negative entries contained in my credit report." This was simply not sufficient to put TRW on notice that the hospital item was obsolete.

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