What information must be removed from a consumer's file after seven years?

The correct information to be removed from a consumer's file after seven years includes all adverse information, which encompasses a range of negative credit items such as late payments, defaults, and most collection accounts. The Fair Credit Reporting Act (FCRA) stipulates this duration to protect consumers from the impact of outdated negative information on their creditworthiness. Adverse information is typically seen as a hindrance to obtaining new credit, so its removal after seven years allows consumers a chance to rebuild their credit profiles over time.

In contrast, the other options pertain to specific types of information. For instance, while bankruptcies can remain on a credit report for up to ten years, paid tax liens, depending on the jurisdiction and circumstance, may also have varied reporting times. Thus, they do not contribute to the broader requirement of removing all adverse information from a consumer's file after seven years. Proof of employment is not subject to the same timeline requirements as adverse credit information, thus falling outside the scope of this question. The focus on all adverse information provides the most comprehensive understanding of what should be considered for removal after the designated timeframe.