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Negative information stays on your credit report

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  • Ross Cunningham •
  • Originally published January 2, 2009 at 1:11 p.m., updated January 2, 2009 at 1:11 p.m.

Q. I have been having some trouble getting credit. I checked my credit report and found that I have several problem debts from about six years ago. Since that time, I have paid all my bills on time and done everything I can to get a good credit rating. What can I do to have these old bad debts removed from my credit report?

A. There is probably nothing you can do to have this information removed. Under the law, if the information is not accurate or complete you can insist that the credit-reporting agency re-investigate, and remove the information unless it is substantiated.

On the other hand, if the information is accurate, there is no way to have it removed simply because it is negative. Credit reporting agencies are in the business of reporting information. All the law requires is that the information they report is accurate and complete, not necessarily favorable. I should point out that after seven years the information will become obsolete and will no longer be reported. It sounds like within a short period of time your credit history will again appear very good.

Q. I have a question. My daughter recently passed away. Can the companies she owed money to force me to pay?

A. Probably not. You are responsible for your daughter's debts only if you agreed to pay them. For example, if you co-signed with her. In all other cases, the company must collect from her estate. If there is not enough money to pay the bills, they do not get paid.

Q. My wife and I were recently approached by someone trying to sell us a living trust. He said that we would save a lot of money on estate taxes. Our estate is worth a total of about $900,000. The living trust would cost us over $1,500. We already have a will. Is it worth it?

A. Based on what you say, you will not owe any estate taxes at your death. Starting this year, estate taxes are due only if your estate is worth over $3.5 million. More importantly, a living trust does not eliminate liability for estate taxes.

In my opinion, most people in Texas do not need a living trust. I suggest you speak with another attorney and have him or her compare the benefits and costs of a living trust and a will. In many cases, a will and some simple estate planning is all you will need.

Q. Can our daughter-in-law claim any part of the land our son recently inherited?

A. If the property was inherited by just your son, it is considered his separate property and his wife has no interest in it.

Q. The other day I had some workers in my apartment. I think one of them left with my extra key. Can I require my landlord to change my locks?

A. Under the law, a landlord has an obligation to change the locks at his expense, when a new tenant moves in. After that time, the landlord must change the locks whenever the tenant requests it, as often as the tenant wants. The tenant, however, must pay the costs of installing the new locks. In other words, you can require your landlord to change your locks, however, you must pay the costs.

Q. My brother wanted to purchase a vehicle but did not have enough credit so he had me co-sign. He's been paying his note on time for over two years and has established good credit. I now want my name removed. How do I get the creditor to remove my name?

A. There is no way to force the creditor to remove you as a co-signer, even if your brother's credit is now excellent. The only way to have a co-signer removed is for the creditor to agree to remove him, or for the debtor to refinance and pay-off the debt. Having said this, I suggest you speak with the creditor because if your brother's credit is now better, the creditor may be willing to refinance in only his name.

Richard Aldermann, a consumer advocate popularly known as "the People's Lawyer," is a professor at the University of Houston Law School in Houston. His column appears weekly in the Victoria Advocate. Write to him at UH Law Center, Houston, Texas 77204-6391. He also maintains a Web page at www.peopleslawyer.net.



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