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Why the Credit Bureaus Can't Get It Right
Our reporter uncovers a system that seems designed to drive you crazy.
User Comments
Posted 4:57 PM EST April 04, 2009
Posted by: thegoodfaery
jusgottahavit....could you tell me what you mean by the $2.30 certification? Do you mean to send a request to the credit bureau via certified mail? THANKS!!
Posted 7:49 AM EST March 05, 2009
What I'd like to know is why are we "the consumer" not getting the same information from the credit agencies as the lenders? I ran my FICO score for the THREE before Experian dropped FICO on 2/13 and now they offer their own score model which doesn't come close to what my lender (who is only using Experian) is looking at! I tell the lender to pull the report based on my review and they come up with significantly lower score and I get DENIED and yet when I update my Experian report, my score is 70 points higher! I call Experian and they then tell me my lender isn't using the same model???? So what good is this information to me? Where is the accountability here! We are accountable for our actions why are these credit agencies who are being "paid" for information that is useless not being held accountable as well?! When I disputed items on my report including delinquencies that I had hard docs to prove otherwise, one of the lenders notified me in writing that they had dropped my credit l...(Read more of this comment)
Posted 2:32 AM EST March 05, 2009
I don't know which of you two is worse. The one looking for mommy to hold his hand or the one looking for the hand out. There are laws and their are people who enforce the law. What more do you want. Do you lock your doors at night? Why? There are laws saying don't steal. There are police who enforce those laws, but every now and then something bad happens and we might buy a lock or an alarm. Did the govt. have to pay for that? No we did. You are expecting way too much from your government. It's like you want them to micromanage your life. Take some damn responsibility of your life and quit relying on Uncle Sam to be there and cover your ass for everything because he won't. It's not a perfect world we live in, but I'm going to do everything in my power to make my life a good one if that means instead of buying that bag of chips, I'm going to send a letter to a creditor challenging him to verify that the debt he tells the CRAs is actually mine. It might be, but can he prove it in the al...(Read more of this comment)
Posted 1:37 AM EST March 05, 2009
So why is everyone turning against me. I'm here trying to help you guys out. And NoJusticeInAmerica I know a few things because I do credit repair. If you want to know how to get free credit reports, just ask. Oh yeah I know that you can get one for free if you get denied, but if you call the automated system of the CRAs and claim being possibly a victim of identity theft you get a free one too. Yes, I said it. If claim that you BELIEVE you are a victim of identity theft you can get a free one too.
It is not misleading as to how easy it is to fix your credit. I do it on a regular basis. Here let me show you.
Dear Credit Reporting Agency,
Account #xxxxxxxxx is not mine. It must be deleted.
Thank you,
jusgottahavit
How hard was that? That's how simple it can be. No blood, no sweat, no tears. Yes a 42cent stamp and $2.30 certification to save yourself from god only knows how much on unnecessary interest. For less than $3 you can get out...(Read more of this comment)
It is not misleading as to how easy it is to fix your credit. I do it on a regular basis. Here let me show you.
Dear Credit Reporting Agency,
Account #xxxxxxxxx is not mine. It must be deleted.
Thank you,
jusgottahavit
How hard was that? That's how simple it can be. No blood, no sweat, no tears. Yes a 42cent stamp and $2.30 certification to save yourself from god only knows how much on unnecessary interest. For less than $3 you can get out...(Read more of this comment)
Posted 9:19 PM EST March 04, 2009
Posted by: CNPDrummer
Justgotahavit must be one of those deregulate the world conservatives who us average guys can thank for the Savings and Loan mess a decade ago and now for telling us to take ownership of our own problems. Guess what - the crappy system created by CRA's is PECISELY what's wrong with the free market enterprise system of today. If you're "too big" to fail (i.e. you have eliminated all your competition), then you are entitled to free bailout money, and creating the bureacracy we find rampant in these CRA companies. I'm getting close to the "Mad as Hell" stage! I appreciate the intelligent discussion of what CAN be done. At the least, we should be crawling all over our politcal leaders to change this system which costs borrowers millions more in interest, potentially lose a job offer, or God know what other consequence for inaccurate financial info. PS: My credit score is in the top 95%, but I shudder to think what one or two errors could cost me!
Posted 12:19 PM EST March 04, 2009
justgottahavit I think you are missing the point, and you are incorrect.
Or at the very least alittle too vague and patronizing to be an expert here.
Let me clear up a few things:
First of all the questions were rhetorical.
Now about the other responses you threw up, Yes you do have to pay for credit reports, and you mention that you can get your reports "more frequently than annually".. ha well that's sort of a spin on facts don't ya think? The only way you can get them more than once without paying is to apply and fail to get a credit card (that is an inquiry on your report which lowers your score.
And to your statement that "it takes as long to fix your credit as it does to mess it up" is extremely mis-leading! It takes a fraction of a second for some dummy CA to put a ding on your credit report, and it takes hours and days of blood, sweat, tears, stamps, and return reciept costs to clear it up. And that is only if you are lucky.
And further more you statem...(Read more of this comment)
Or at the very least alittle too vague and patronizing to be an expert here.
Let me clear up a few things:
First of all the questions were rhetorical.
Now about the other responses you threw up, Yes you do have to pay for credit reports, and you mention that you can get your reports "more frequently than annually".. ha well that's sort of a spin on facts don't ya think? The only way you can get them more than once without paying is to apply and fail to get a credit card (that is an inquiry on your report which lowers your score.
And to your statement that "it takes as long to fix your credit as it does to mess it up" is extremely mis-leading! It takes a fraction of a second for some dummy CA to put a ding on your credit report, and it takes hours and days of blood, sweat, tears, stamps, and return reciept costs to clear it up. And that is only if you are lucky.
And further more you statem...(Read more of this comment)
Posted 4:42 PM EST March 03, 2009
NoJusticeInAmerica,
To answer your first question, we don't have to pay to view our credit reports. They're not going to advertise that, but there are ways to view credit reports, more frequently than annually, without paying a cent. And we don't have to pay to fix our credit report. It takes about as much time to fix it as it does to mess it up. For instance, how long does it take to apply for a loan? In that same amount of time we can write a letter challenging inserts on our credit reports.
As far as the governments responsibility. They made the law and made it available to us and to benefit us. It's up to us to understand it and use it. We are the enforcers. A lot of these companies will use our ignorance of the law against us. It happens every where. The FDCPA and FCRA are to protect us. So print them out and use them to your advantage.
Why don't CRA's fix their data? Think of it like this. They are information recorders. Information provided to them they bel...(Read more of this comment)
To answer your first question, we don't have to pay to view our credit reports. They're not going to advertise that, but there are ways to view credit reports, more frequently than annually, without paying a cent. And we don't have to pay to fix our credit report. It takes about as much time to fix it as it does to mess it up. For instance, how long does it take to apply for a loan? In that same amount of time we can write a letter challenging inserts on our credit reports.
As far as the governments responsibility. They made the law and made it available to us and to benefit us. It's up to us to understand it and use it. We are the enforcers. A lot of these companies will use our ignorance of the law against us. It happens every where. The FDCPA and FCRA are to protect us. So print them out and use them to your advantage.
Why don't CRA's fix their data? Think of it like this. They are information recorders. Information provided to them they bel...(Read more of this comment)
Posted 2:15 PM EST March 03, 2009
response to CNPDrummer 3/1/09 Post:
Dido to all your questions!! Amen someone else feels the same way.!
To add on to that;
1. Why do we have to pay to see, and pay to fix our credit reports and scores? These things dictate if we can get loans, how much we pay in interest to lenders of all types. Doesn't the government have a responsibility to enforce the laws of the country? Aren't the FPCPA, and the FCRA laws of the country? Why aren't reports free, why don't CRA's actually fix their data? Someone once said somehting which appears to be true that can answer part of my add-on questions:
1a. Credit Reprting Agencies make money off people who enter consumer data in there, and banks & lenders make more money off abused consumers who have their credit reports damaged by false and/or out dated information. So the banks and the lenders have no motivation what-so ever to correct reporting mistakes (purposeful or not) , on the contrary - they actually have more incentive...(Read more of this comment)
Dido to all your questions!! Amen someone else feels the same way.!
To add on to that;
1. Why do we have to pay to see, and pay to fix our credit reports and scores? These things dictate if we can get loans, how much we pay in interest to lenders of all types. Doesn't the government have a responsibility to enforce the laws of the country? Aren't the FPCPA, and the FCRA laws of the country? Why aren't reports free, why don't CRA's actually fix their data? Someone once said somehting which appears to be true that can answer part of my add-on questions:
1a. Credit Reprting Agencies make money off people who enter consumer data in there, and banks & lenders make more money off abused consumers who have their credit reports damaged by false and/or out dated information. So the banks and the lenders have no motivation what-so ever to correct reporting mistakes (purposeful or not) , on the contrary - they actually have more incentive...(Read more of this comment)
Posted 10:56 AM EST March 02, 2009
Posted by: Nickindal
jusgottahavit,i would be one looking for guidance.
Posted 12:25 AM EST March 02, 2009
bricklethepickle,
It is illegal to report anything on your credit report after 7 years of the date of last activity. Many creditors still report it, but suit can be brought upon these companies for $1000 for each erroneous report. Simply rereporting the item doesn't start the 7 years over. I totally agree that the credit reporting agencies should request verification of what is being reported but that just isn't the case. Challenge these creditors with dispute letters found online. If they do not return a letter either send them another or send a copy of that letter to the credit reporting agencies with a statement saying that they failed to respond and the item MUST come of by law.
It is illegal to report anything on your credit report after 7 years of the date of last activity. Many creditors still report it, but suit can be brought upon these companies for $1000 for each erroneous report. Simply rereporting the item doesn't start the 7 years over. I totally agree that the credit reporting agencies should request verification of what is being reported but that just isn't the case. Challenge these creditors with dispute letters found online. If they do not return a letter either send them another or send a copy of that letter to the credit reporting agencies with a statement saying that they failed to respond and the item MUST come of by law.
Posted 12:17 AM EST March 02, 2009
Environengineer,
Laws have changed from many years ago. Read the Fair Credit Reporting Act. I did. So much useful information. I've had a company hunt me down for $33,000 for 11 years. One, it can't be reported after 7 yrs. Two, statutes of limitations on collecting a debt expires after 4 yrs. in Texas. They had a law firm threaten me and I merely copied and pasted a few items from the Fair Credit Reporting Act and I've never been bothered since. If anyone reading this needs help fixing their credit, I'd be more than happy to guide you in the right direction.
Laws have changed from many years ago. Read the Fair Credit Reporting Act. I did. So much useful information. I've had a company hunt me down for $33,000 for 11 years. One, it can't be reported after 7 yrs. Two, statutes of limitations on collecting a debt expires after 4 yrs. in Texas. They had a law firm threaten me and I merely copied and pasted a few items from the Fair Credit Reporting Act and I've never been bothered since. If anyone reading this needs help fixing their credit, I'd be more than happy to guide you in the right direction.
Posted 12:01 AM EST March 02, 2009
CNPDrummer,
As far as your issue, do not dispute anything online. You need a letter mailed certified to the creditor who is reporting the information. If they do not reply within 30 days or correct the matter. It must be deleted. This federal law based on the Fair Credit Reporting Act. Proof must be provided. I've actually had legitimate reports removed because they could not verify in time. I'm talking thousands of dollars. You can challenge each and every single line on your report, even bankruptcies.
I've been doing this for a while. It's fun. I use to get all the harassing phone calls from collectors. Not anymore. When you put it writing that you want them to stop, they listen. It's law.
As far as your issue, do not dispute anything online. You need a letter mailed certified to the creditor who is reporting the information. If they do not reply within 30 days or correct the matter. It must be deleted. This federal law based on the Fair Credit Reporting Act. Proof must be provided. I've actually had legitimate reports removed because they could not verify in time. I'm talking thousands of dollars. You can challenge each and every single line on your report, even bankruptcies.
I've been doing this for a while. It's fun. I use to get all the harassing phone calls from collectors. Not anymore. When you put it writing that you want them to stop, they listen. It's law.
Posted 9:21 PM EST March 01, 2009
I had a problem (several) once and when I contacted the credit bureau that lady actually told me that they just go by the name and not by SSN!
Unbelievable
Unbelievable
Posted 8:46 PM EST March 01, 2009
Posted by: CNPDrummer
1) WHY do we have to pay for our credit score? 2) Why are for-profit companies in charge of my financial information. 3)Why are they allowed to sell it to anyone willing to fork over a few bucks? 4) WHY is there no oversight to assure harmful innacuracies are quickly corrected? 5) WHY do I have to jump through so many hoops to assure accuracy?I needed to vent after spending most of my weekend dodging the free-credit report bait and switch used by all 3 reporting agencies. To make matters worse, I found the same report errors on them all. Now just TRY to correct them - I DARE YOU! As I start the on-line dispute process, Equifax dumps me at CSC Credit's doorstep. I have to create a whole new ID & Password, which doesn't work minutes later when I try to login. I am also left without so much as a phone number to call for help with the issue, effectively locking me out of disputing anything at all. I finally wrote out an FTC complaint. This is all BS! Where have our legistat...(Read more of this comment)
Posted 8:44 PM EST March 01, 2009
Posted by: environengineer
What the credit reporting agencies neglect to tell you is that the terms of their contracts with the companies that report to them require them to accept what those companies tell them, not what you can prove otherwise. Case in point: Many years ago a false claim of default was reported on my credit report. I disputed the information and provided the reporting agency with a copy of court documents in which the person claiming the default admitted under oath that the account had been paid in full well in advance of its due date. The credit reporting agency said it didn't matter that I had court documents disproving the claim, they were bound to accept what their paying clients told them and include it in my credit report.
Posted 8:35 PM EST March 01, 2009
I believe all the three credit report agencies should have the repsonbility of proving and verifying the accuracy of the information, once notified of an discrepancy. Appropriate documentation should be submitted by both parties (credit agency and complainant). I believe very little follow up or verification by the agency is done; whatever the lender responds, the credit agency reports as fact, which then become part of your credit record for ANOTHER SEVEN years. Once a item has been on your credit report for 7 years, it should be illegal to report that same item for another 7 years or enternity.
Posted 2:50 PM EST March 01, 2009
I find the article misleading. The Credit Reporting Agencies are nothing but information recorders. They retain what is reported to them. Yes, errors can be made but it up to the consumers to check their credit reports regularly and notify either the creditor reporting the information or the credit reporting agency of the deficiencies. It is so easy to fix your credit.
I have been doing it for friends and family for about a year now. Simply send written correspondence disputing whatever you wish, whether accurate or not, to the creditor reporting the information. They have 30 days to validate that what is being reported is true. A simple "this is verified" will not suffice without sufficient proof. If it is not validated with proof in 30 days, by law (FCRA), it MUST be removed from the credit report. Too easy.
Sample dispute letters and more info can be found all over the internet.
I have been doing it for friends and family for about a year now. Simply send written correspondence disputing whatever you wish, whether accurate or not, to the creditor reporting the information. They have 30 days to validate that what is being reported is true. A simple "this is verified" will not suffice without sufficient proof. If it is not validated with proof in 30 days, by law (FCRA), it MUST be removed from the credit report. Too easy.
Sample dispute letters and more info can be found all over the internet.
Posted 9:20 PM EST February 19, 2009
You keep using the term "BUREAU." There is no such thing as a "Credit Bureau." According to Webster On Line Dictionary, Bureau is a noun meaning:
1. An administrative unit of government;
2. Furniture with drawers for keeping clothes.
TransUnion, Experian, and Equifax are companies that are paid for their services by their customers, who are other companies that report through TransUnion, Experian, and Equifax. Anyone can be a customer as long as they are willing to pay the monthly fee that TransUnion, Experian, and Equifax charge.
TransUnion, Experian, and Equifax have way too much power and ruin lives. They must be stopped.
Please stop giving them even more power by referring to TransUnion, Experian, and Equifax as a "bureau"
As far as "investigating" goes, all they do is ask their customer to confirm or deny whether or not the reported debt is correct. So lets stop referring to their doing "investigations" too.
1. An administrative unit of government;
2. Furniture with drawers for keeping clothes.
TransUnion, Experian, and Equifax are companies that are paid for their services by their customers, who are other companies that report through TransUnion, Experian, and Equifax. Anyone can be a customer as long as they are willing to pay the monthly fee that TransUnion, Experian, and Equifax charge.
TransUnion, Experian, and Equifax have way too much power and ruin lives. They must be stopped.
Please stop giving them even more power by referring to TransUnion, Experian, and Equifax as a "bureau"
As far as "investigating" goes, all they do is ask their customer to confirm or deny whether or not the reported debt is correct. So lets stop referring to their doing "investigations" too.
Posted 11:45 AM EST February 11, 2009
I got a good one for all of you to think about regarding debt collecting and negative credit reports:
As you all know these big banks who have these large credit lending components to their businesses, have recently asked for and/or accepted BILLIONS of dollars, BILLIONS OF TAX PAYER DOLLARS. Yes our money. Companies like Chase, GE, Citigroup, etc.. who are major credit card distributors. I am enraged when I think about them tagging negative remarks on people's credit reports, and going after consumers who are down on their luck for money they do not have. When you think about it, we will have given them over $9,000. each this year alone of our tax money with these bailouts, and yet they will come after you for old out-dated debts, and they will destroy your credit records for over 7 years?!? Isn't there something fundamentaly wrong here?!?!Don't they owe us money, can we destroy their records, and their lives?
As you all know these big banks who have these large credit lending components to their businesses, have recently asked for and/or accepted BILLIONS of dollars, BILLIONS OF TAX PAYER DOLLARS. Yes our money. Companies like Chase, GE, Citigroup, etc.. who are major credit card distributors. I am enraged when I think about them tagging negative remarks on people's credit reports, and going after consumers who are down on their luck for money they do not have. When you think about it, we will have given them over $9,000. each this year alone of our tax money with these bailouts, and yet they will come after you for old out-dated debts, and they will destroy your credit records for over 7 years?!? Isn't there something fundamentaly wrong here?!?!Don't they owe us money, can we destroy their records, and their lives?
Posted 1:11 PM EST February 09, 2009
What I don't understand is why do the credit bureaus list phone numbers? No one answers the phone, and I'd be afraid if they did, you'd likely have to press 1 for English. Also, where do they come off with "customer service"? Responding to a customer's request is "service" in case they didn't know. I once attended the Direct Marketing Association trade show. Trans Union has a very large, impressive booth to draw users in. In today's economy they still spend, spend, spend, at the shows. Too bad the people that work the booth are like the auto show models, just read from a scrIpt and don't know the truth behind the product or the service issues that arise!
By the way Smart Money, where I come from "Can't means Won't!" in all instances.....think about it!
By the way Smart Money, where I come from "Can't means Won't!" in all instances.....think about it!
Posted 12:32 PM EST February 03, 2009
Posted by: Scurzuzu
Don't type in the URL that CreditInsider left in his comment at 11:58am on Feb 03. It is just a placeholder page with generic "credit" links, designed to earn money off of random credit repair searches online. I'm not sure if he typed the wrong address or deliberately tried to mislead, but regardless the URL is useless.
Posted 11:58 AM EST February 03, 2009
Posted by: CreditInsider
http://www.mycreditfile.com is used by most credit industry insiders for ordering outside reports, and placing disputes, and dealing with credit repair. They offer a complete list of the "best" of the "best" credit tools.
Posted 11:06 AM EST February 03, 2009
Posted by: Nathan17
37% of consumers find errors on their credit report, is likened to 90% of the population feels they have higher than average intelligence. I agree there should be a more hands-on approach to resolving disputes but the size of the industry limits this ability. If all participating companies abide by the e-oscar process then the system is very efficient; but it would be nice to have a hands-on option to appeal if the initial e-oscar process fails. But, more to the point, lenders should not be 100% reliant on credit bureau data/scores; a credit bureau report is a starting point .. a lender should still independently verify and investigate the information therein. A lender would not expect a balance reported to the credit bureau be used as a payoff quote; similarly they should not treat a credit bureau report/score as gospel. Credit is one and only one of the 5 c's of lending. The e-oscar model may need to be modified, but it is an efficient framework that has benefited consumers the...(Read more of this comment)
Posted 2:08 PM EST February 02, 2009
Posted by: dcochran63
Would you say it is ironic that below this story are all kinds of Google ads that link the reader to "free" credit bureau inquiry services? I think "freecreditreport.com" wrote this article.
Posted 12:37 PM EST February 02, 2009
Posted by: dougofte
Just more clap-trap from some comapany paid shill.".....We don't write the book". They guy should be horse whipped for making a statement like that.
These companies hire the barely retrainable (low low cost) to enter the very information their companies are built upon.
They don't really care because when a lender requests info from them they furnish info and are paid. Whether the info is correct or not.
One would think the lenders would be concerned about loosing a good customer thru the lack of quality control on the part of a third party. Of course we won't even go over by where the lender's big time decision makers are wined and dined with a happy ending by theese bureaus (has nothing to do with it, grin).
Then we have the goobers out there checking liens at town halls. How much of that info if cooked up while sitting in the local bar??
Think about the people who work for these bureaus, they are your fmaily members, neighbors, fellow church attenders and may...(Read more of this comment)
Posted: 5:57 PM EST September 30, 2009
Posted by: upgrademycredit on Twitter
RT @MikeCitron: http://bit.ly/QrdPI Now it makes sense... This is EXACTLY what I said-
Posted: 12:39 AM EST September 30, 2009
Posted by: Vixwrld on Twitter
RT @MikeCitron: http://bit.ly/QrdPI Now it make sense... This is EXACTLY what I said- DITTO!
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