When Bureaus Mix Credit Files, the Consumer Suffers

When Bureaus Mix Credit Files, the Consumer Suffers Yesterday’s NYTImes has an op-ed how the credit bureaus sometimes mix the files of one consumer with another. Mixed files result when a credit bureau issues a report on a consumer that includes the credit files of a different person. When the other person has negative accounts like charge-offs, repossessed car loans, etc. the innocent consumer cannot get credit from banks, can’t open a checking account, can’t get a car loan, etc. The op-ed piece gives the Judy Ann Thomas case as an example. She lived in Ohio, but the credit bureau...

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Credit Bureaus to Forward Dispute Documents to Creditors

Reporter Kelly Dilworth of CreditCards.com has posted an excellent report on a new development in the credit dispute process. For the first time, beginning later this year, TransUnion, Experian and Equifax will begin scanning every document that you mail in, including the full text of your dispute letter, and electronically transmit the documents to lenders and other data furnishers. Heretofore, all the credit bureaus sent to the creditors was a two or three digit code and a few comments. For example, if a consumer states the account does not belong to him or her, the dispute would be reduced to...

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60 Minutes & the FTC Reports on How the Credit Bureaus Fail to Correct Serious Errors in Consumers’ Credit Reports

Last night, 60 Minutes aired a fine report on the failure of Experian, Equifax and Trans Union to comply with the FCRA’s requirement that they investigate and correct errors in consumers’ credit reports. Steve Kroft of 60 Minutes traveled to Santiago, Chile where Experian employs most of its credit dispute employees. Three ex-Experian employees, who handled disputes sent by US consumers, told Steve their only function was to reduce the dispute to a two-digit code and forward it to the creditor that made the report and if the creditor said its report was correct, they verified the report to the...

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CFPB to Begin Regulating Credit Bureaus

Today the Consumer Financial Protection Bureau (CFPB) announced it is now accepting accepting consumer complaints about credit reporting. The CFPB’s press release advises consumers who have a problem with their credit reports to first dispute the reports by contacting the credit bureaus directly before complaining to the CFPB. The CFPB will accept complaints about the following issues: · Incorrect information on a credit report; · A consumer reporting agency’s investigation; · The improper use of a credit report; · Being unable to get a copy of a credit score or file; and · Problems with credit monitoring or identify protection...

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The Fair Credit Dispute System is Broken

CreditCards.com has useful information on the credit bureaus and how they operate. Today’s article is a good description on how the dispute process does not work in many cases. To dispute an inaccuracy, the consumer must contact the credit bureaus directly. Let’s say the dispute is a bit complicated. The consumer therefore has to explain the facts and may enclose documents proving that the current reporting is in error. What does the bureau do with the letter and documents? They compress it all into a two- to three-digit computer code and a 100-character summary, and send it electronically to the...

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