Credit Guides And Credit Services

• Credit bureaus refuse to delete inaccurate data because the credit grantor, through an automated system, verified it as accurate. credit pacific service union

• Disputed information actually was deleted, but later was reinserted because the credit grantor thoughtlessly re-reported it, and the credit bureaus screens failed to catch it. credit first service union

• The credit bureaus algorithms cause them to wrongly mix into your credit report data about people with similar names or SSNs. card credit mobile service

Another important consideration is the tremendous volume of disputes that the bureaus must handle and the challenges this presents. According to deposition testimony, approximately 350 credit bureaus employees must process between 7, 000 and 10, 000 consumer disputes per day. card credit discover service

Because there is an average of three items disputed by each consumer, the credit bureau employees only have a few minutes for processing each disputed item. To handle this volume, credit bureau employees must quickly enter a two-digit code describing the consumer s dispute, which is then sent via computer to the furnisher of the information. Most furnishers have an automated system, which merely checks to see if the data disputed by the consumer is identical to the data originally furnished by the credit grantor. If it is the same, the credit grantor verifies its accuracy and the credit bureau refuses to delete it. However, if the furnisher s original information is inaccurate, this automated exchange between it and the credit bureau fails to uncover the inaccuracy. credit public service union

The approaches recommended in this chapter are designed to maximize your chances for resolving disputes with the minimum amount of time and effort. However, if credit bureaus or credit grantors initially fail to correct inaccurate information, these approaches should enhance your ability to enforce your basic right to an accurate credit report. card credit processing service

With these caveats in mind, we can proceed to discuss the basics of the dispute and correction process. First Steps A System For Documenting Your Disputes Whether you look at it as a project or part-time job, it is wise to keep careful track of your dispute-related communications with the three major repositories. You should create a folder for each of the three credit bureaus in which you can store copies of letters and attachments. It also is wise to maintain a log that records the date and time of your communications. The log is particularly important if you choose to conduct your disputes mainly over the Internet or by phone. center credit service union

The fastest way to dispute errors is online, through each CRA s Web site. The second fastest was to dispute is over the telephone. But unless you are forced by the circumstance of a pending mortgage application or other high-pressure deadline, it is generally most prudent to conduct all disputes in writing via First Class certified mail. It will cost you $2.47 for each certified letter (or $7.38 for three). With the number on the certified mail receipt, you can go to the U.S. Postal Service s web site (www.usps.com) and verify that each credit bureau received your dispute letter. Print out a copy and place it in your newly created folder. For an extra $1.95 per letter ($5.85 for three), you can go the extra step of a return receipt requested, which you can include in the folder upon its return from the credit bureau. Remember, keep copies of all letters, receipts, and attachments in the folder corresponding to Equifax, Experian, or Trans Union. If a credit grantor like Sears or MBNA is causing inaccuracies, you will want to create folders for them as well. card credit service wireless

Some might find such record-keeping chores to be a pain in the neck, but it s a greater pain down the road to have to prove that you disputed something when you don t have the documentation. As we will see, the FCRA imposes deadlines on the credit bureaus and credit grantors, and these deadlines can work to your advantage. Your record-keeping system can help show that you did what you were supposed to do, but that they did not meet the deadlines. Under the FCRA, if they don t meet the 30-day deadline for verifying disputed information, they are supposed to delete it and not reinsert it. credit security service union

The Nature of Your Dispute

An important consideration in deciding how to proceed is the nature of the error or errors that you are planning to dispute. Again, if you are under a high-stakes deadline, where errors have lowered your credit score to the point that a mortgage will cost an extra several hundred dollars per month, you will probably want to dispute the errors online through the credit bureaus Web sites. You may even want to involve an attorney. If you are applying for a mortgage or refinancing, ask your mortgage broker or lender to enlist the help of a reseller so you can benefit from rapid re-scoring of your credit report (see Chapter 3). If you are facing a mortgage or other deadline, say so in your dispute letter. The bureaus prioritize emergency disputes. credit report service

On the other hand, let s say you are not faced with a deadline and you have discovered Sears is reporting that last year, you were once 60-days late, and once 30-days late. To the best of your recollection, this was a result of a mistake by Sears, as it sent the bill to the wrong address. You found out about it because Sears called you at the correct phone number. You paid the bill right away. Sears admitted it was their mistake and apologized. blogspot com christian

Because you finally obtained your credit report, you ve discovered the mistake is showing up on two of your three credit reports. Because you used the online credit score simulator at the Fair Isaac or credit bureau Web site, you see that removing these derogatory tradelines will bump you up to a better risk category. In other words, it s worth getting it deleted because in a few months, you ll probably apply for some kind of credit or be up for an insurance renewal. In this case, it could be most effective to send a friendly, written dispute to the two credit bureaus, along with any supporting documentation, preferably a letter from Sears confirming your story. Again, it s even better if Sears directly notifies the credit bureau that the information should be deleted. In any event, if things work as they should, the information is deleted from your credit report and your credit score improves. christian counseling credit

Three Avenues Mail, Phone, or Online

All right. We have gotten most of the qualifiers out of the way. For the most part, it s best to do your disputes in writing. Here are the three avenues for disputing credit report errors, with a brief summary of their advantages and disadvantages: credit federal service union

• Certified First Class Mail

  . Advantage: Allows you to prove the credit bureau received your dispute. Allows you to attach supporting documentation. Disadvantage: Takes longer, usually requires more paper shuffling. credit monitoring service

• By Phone

  . Advantage: Allows you to explain your case to a human being. Involves less paper shuffling. Disadvantage: Could make it more difficult to later prove you disputed errors. Requires that you take careful notes of your conversation. Does not allow you to provide supporting documentation unless you can provide it via fax machine. Also, it s possible, and some folks think likely, that CRAs record consumer dispute phone calls. credit division service

• Online

  . Advantage: Dispute is immediate, and is instantly forwarded to the credit grantor, triggering its investigation. Disadvantage: Could make it more difficult to later prove you disputed errors. Requires that you take careful notes, print out computer screens. Does not allow you to provide supporting documentation unless you can provide it via fax machine later. card credit online service

Here are the addresses and phone numbers for disputes. Please note that the P.O. Box numbers and telephone numbers for disputes are different from the ones used for requesting a copy of your credit report. consumer counseling credit inc

Equifax

P.O. Box 740256 Atlanta, GA 30374 (800) 797-7033 [9am - 5:00pm In Your Time Zone] https://www.econsumer.equifax.com/elsc Experian NCAC P.O. Box 9595 Allen, TX 75013 (800) 583-4080 [9am - 5:00pm In Your Time Zone] www.consumer.com/consumer/index.html Trans Union P.O. Box 2000 Chester, PA 19022-2000 (800) 916 8800 [8:30am - 4:30pm Your Time Zone] card credit fleet service

www.transunion.com/investigate Disputing In Writing Via First Class Mail (Certified) One advantage to getting the paper version of your credit report is that the last page is the bureau s form for disputing errors in your credit report. In general, the most effective manner for disputing errors is to: card consolidation credit

• Fill out the bureau s dispute form

  , including the confirmation number from your credit report. Be as specific as possible about what information you want deleted or changed, and why. If you prefer not to use the dispute form, integrate all specifics into a concise dispute letter. Avoid poorly focused or rambling letters that don t quickly identify the specifics of your dispute. Limit your dispute to one page and rewrite it until it is that short. credit free online report

• Attach any supporting documentation

  , like a copy of a cancelled check, showing that a trade line was paid on time or paid in full. credit federal first service

• Attach your own version of Dispute Sample Letter 1

  (see Page 98) consumer credit service

• Send your dispute package Certified First Class Mail to both the credit bureau and the credit grantor (furnisher)
• Keep all copies and the mail receipt in a dedicated folder

• Note the Activity on your Log
• Mark on your calendar 35 days from when you send the letter to check for a response and to send a follow up letter

  (if necessary) center credit family service

Fill Out The Dispute Form.

One advantage of the dispute form attached to your credit report is that it has your identifying information pre-filled-in, thereby authenticating you. The form also makes it easy to fill in the company name and account number of the trade line you are disputing. credit reporting service

It includes boxes you can check explaining the reason why the information is inaccurate, including Not My Account, Paid In Full, Payment Never Late, or Payment Status Incorrect, Account Closed, and Account in Bankruptcy, or Paid Before Sent To Collection. Importantly, these forms include the category Other, and space to explain in more detail. cca credit division service

If there are details that support your dispute, concisely write them on the form. Also important, if there are documents, like cancelled checks, or user agreements that support your dispute, attach copies and make it part of the dispute package. The FCRA requires that the credit bureaus provide to the credit grantor (furnisher) all relevant information provided by the consumer so that the credit grantor can see that the dispute is supported. credit free report service

Recent testimony before Congress suggested that the credit bureaus are not always complying with this requirement. As noted before, the bureaus try to cope with the volume by describing the dispute with a two- or three-digit code that can be sent via computer to the furnisher. This automated message exchange does not very well accommodate transmission of paper attachments provided by the consumer. But the FCRA mandates that the credit bureaus provide all of your relevant material to the credit grantor. Thus, there is a tension between customary industry practice and what seems to be an obvious legal requirement, which has not yet been resolved by the courts. card credit customer discover

Another potential tension is the requirement that the credit bureaus forward the consumer s dispute to the furnisher within five business days. Testimony before Congress raised questions as to the extent this was happening. credit repair report service

I mention this so you will know to fashion your dispute to fully take advantage of the rights afforded you by the FCRA. That brings us to Sample Dispute Letter #1. Sample Dispute Letter This letter serves two purposes. First, it puts the cred-it bureau and credit grantor on notice that you are serious about getting errors corrected and that you know your rights. Second, it provides an opportunity to provide any extra details or explanations that you were unable to fit on the dispute form. (If you do not use the dispute form, include the identifiers needed to authenticate you: Name, address, SSN, date of birth, previous addresses, and spouse s name.) credit legal repair service

You will also notice that the sample letter takes on a respectful, non-threatening tone. Remember, a human em-ployee, likely trying to handle huge volumes in a stressful environment, must process your dispute. Credit bureau officials state that a threatening or nasty tone does nothing to encourage their employees to effectuate your ultimate goal of correcting errors. They also say that it helps to get right to the point and not ramble. On balance, it is always better to treat other humans with respect, particularly when you want them to facilitate the correction of errors. (See sample letter, next page.) cic credit monitoring service

Sample Letter⁶⁷

To: Equifax, Experian and/or Trans Union (Address) Dear Credit Bureau: I am writing to dispute the following inaccuracies in my credit report: ccs credit division service

1. Sears Account No.: 123456789-01 Dispute: Never late (Canceled check showing timely payment attached) credit service union worker

2. MBNA Account No. 987654321-03 Dispute: Not Mine My ex-spouse s account (Statement of Divorce Confirmation letter from ex-spouse attached) 1st credit service union

• Previous Address Dispute: I never lived at 444 Elm St (Utility bill with current address is attached. I ve lived at this address for four years). card chase credit customer

• Please forward this letter and the enclosures to any of the creditors. If you do not send a copy of my letter and the enclosures to any of the creditors, I request that you promptly advise me so I can take additional steps to protect myself. Thanks for helping me in this very important matter. card chase credit service

Sincerely Yours, The Concerned Consumer ⁶⁷ This letter was drafted with the help of James Fishman, an attorney and FCRA specialist in New York with Fishman and Neil, and by attorney Joanne Faulkner of New Haven, Connecticut. Send To Both Credit Bureau Credit Grantor Even if you think your creditor is the main cause of the problem, you need to send the dispute to the credit bureau that is including the errors in your credit report. This is because the FCRA directs consumers to route their disputes through the credit bureaus. The credit bureau in turn is responsible for notifying the credit grantor of the dispute and for forwarding to the creditor all other relevant information. By sending the dispute to the credit bureau, the consumer increases the duty on the credit grantor to reinvestigate and increases its liability if it fails to do so. citi credit monitoring service

In most cases, it s also a good idea to send the dispute data directly to the credit grantor. There have been cases in which the credit grantors have claimed they never received the credit bureau s notice of the consumer s dispute. Sending it directly to the credit grantor also puts it on notice that you are serious about getting the error corrected. credit plus service union

And don t forget the shortcut mentioned before. If you think your creditor will believe you and promptly instruct the credit bureau that the disputed data should be deleted or corrected, that could be the most efficient way to accomplish this goal. After all, you are the creditor s customer. Sometimes, that gives you leverage. credit farm service

Send all letters Certified First Class Mail. In a few days, go to the U.S. Postal Service s Web site (www.usps.com) and using the number on your Certified Mail receipt, confirm receipt of your dispute. Note all the activity in your Activity Log. 1st credit federal service

The FCRA requires the credit bureaus to complete their investigation in 30 days and send you the results of their investigation. Mark your calendar so you will know to send a follow up letter if they fail to meet that requirement. Generally, you want to avoid sending additional dispute letters within the 30-day period, as that grants the credit bureaus an extension. The credit bureaus must forward your dispute to the credit grantors within five business days. credit paychex service tax

Following Up

Within 30 days or so, you are supposed to receive at least a letter from each credit bureau advising you the results of the investigation. If your dispute is successful, the bureaus will respond by informing you that trade lines (information about an account) will be deleted or otherwise corrected. If you don t receive a response by day 40 or so, then write a follow-up letter basically stating: credit service tax

Since you did not advise me within 30 days about your investigation of my dispute, please confirm that you have deleted the disputed account (insert creditor name and account number). Please do this promptly and send me a corrected copy of my credit report. Also please ensure that this deleted trade line is not reinserted into my credit report at some future date. Thank you very much for your prompt assistance in this matter. I hope you have a great day. aeon credit service

Happy Consumer If the credit grantor insisted that its original report about you was correct, the credit bureau will advise you that the disputed trade line was verified as reported. If this is the case, and you are not willing to give up, it s time to escalate. Before we discuss the escalation process, let s say a few words about disputing by telephone and via the Internet. Telephone credit one service union

You can dispute errors over the phone by calling the toll-free numbers listed in this chapter. There might be certain errors that lend themselves to resolution by telephone. For example, if you are 22 years old and your credit report shows you owe an unpaid, 7-year-old auto loan, you could probably convince a credit bureau operator that you are not responsible and that this is a mistake. bad cell credit phone service

But if you are trying to resolve the kinds of disputes where your word is not sufficient then you need to prepare before you make the phone call. First, you want to gather and have ready all documentation supporting your dispute. Second, you want to be ready to keep detailed notes of your conversation. Some state laws permit you to record phone conversations without first getting the other person s consent, but overall, it s usually better to obtain someone s consent before recording a phone conversation. counseling credit debt service

Finally, you should ask the credit bureau employee for a fax number so you can fax any supporting documentation. Keep a copy of the fax machine s activity record showing the time and date that you faxed the information to the bureau s fax number. card credit payment service

Place all records related to this communication in your dedicated folder. Internet After obtaining your credit report online at the credit bureau s Web site, you can click on specific derogatory trade lines, find the dispute button, and click on that to dispute it. When you do this, the credit bureau says it instantly forwards your dispute to the furnisher. This should speed the dispute resolution process, but there are no guarantees of that as of this writing. Print all relevant computer screens and save them in a dedicated folder. card credit merchant

Escalating After A Refusal To Correct

If, like many other consumers, you found that the system did not work the way it was supposed to, and that inaccurate information remains on your credit report, your situation is considerably more serious, and it s time to take it to the next level. If possible, it s best to get expert legal advice from an attorney who specializes in the FCRA. Again, the best places to find FCRA attorneys are at two groups: the National Association of Consumer Advocates (NACA) www.naca.net and the National Consumer Law Center (NCLC) www.nclc.org. counseling credit family

As a practical matter, however, it s not always possible or affordable for many consumers to find an attorney who will represent them at such an early stage in the credit dispute process. If you are determined to clear your credit report, but it s not practical for you to find legal representation, let s look at the next steps you can take on your own. annual credit report request

Escalation Letter More Demanding

Since the resolution of your dispute now necessitates some escalation, your letter to the credit bureaus and/or credit grantors will require a more stern and demanding tone. Here are some points that might help you communicate your seriousness. Of course, you should only state things that are true. area bay credit service

• Ask the credit bureau to describe the accuracy and completeness of the disputed data, including the business name, address and phone number of any furnisher that was contacted. This is an important right under the FCRA that is often overlooked.⁶⁸ atlanta consumer counseling

• List all ways that the bureau s failure to honor your dispute has damaged you. Has it caused credit denials or discouraged you from applying for credit Is it causing you frustration, aggravation or other emotional distress If so, is the distress interfering with your work performance, relationships, or daily life account card credit merchant

• Write to the FTC⁶⁹, which under the new FACT Act will forward your complaint to the credit bureau; also, write your Member of Congress⁷⁰ and/or the news media. aspire card credit customer

• Complain to a state authority, like a State Attorney General⁷¹, or banking department or consumer protection department. In some cases, these offices will contact the bureaus about your complaint. Sometimes that suffices to make the bureaus respond. Some county governments have helpful consumer affairs offices.⁷² card counseling credit service

• You can also place a 100-word statement of dispute on your report, but generally this has not proven to accomplish much. card credit online processing

Taking It To Court

If none of these actions are successful in convincing the CRAs to delete or correct inaccurate information, the FCRA gives you the right to go to court and file suit. The merits of such a suit can only be judged on a case-by-case basis. Like any other area, it is preferable to seek the advice of an attorney who specializes in the FCRA. If you are unable to find a specialist, any attorney can obtain valuable information about the FCRA in a manual published by the National Consumer Law Center (www.nclc.org). consolidated counseling credit

⁶⁸

15 U.S.C. 1681i(a)(6)(B)(iii) ⁶⁹ www.ftc.gov ⁷⁰ www.house.gov and www.senate.gov ⁷¹ Go to www.naag.org. Web site for the National Association of Attorneys General to obtain an address for your State Attorney General ⁷² See www.nacaanet.org/about/members.ahtml, the National Association of Consumer Agency Administrators Making Your Dispute A Priority check credit service

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