The Best Guide to Win Your Credit Report Dispute
The 60 Minutes TV program just lately disclosed the large amount of problems in consumer credit files. While a substantial amount of these were errors that might be adjusted through the standard routes of contacting the credit bureau, millions of people don't succeed in getting the errors removed from the credit files. The result could be not just costly but life-changing:
a. Failure to acquire a loan for a residence or a car or education
b. A lowered credit rating necessitating higher payments for loans you do get
c. Never-ending difficulties in the matter of id theft
The problem is that the credit reporting bureaus will just take the customer's complaint and pass it along to the creditor, i.e. the bank.The financial institution then sends back a notice to the credit bureau that the data in the credit agency's files agrees with the documents of the creditor. Case closed: the individual is advised tough luck. So the system which tells people to begin with the credit bureaus to correct problems in their credit report is just a waste of time because the credit reporting agencies will correct nothing at all and simply report data the lenders tell them. The far better course of action is to go directly to the lender to fix their information.
Of course, in the majority of cases, the financial institution will just report that their records are accurate and you, the consumer, are basically wrong.
I had this specific instance happen to me two times, with two well-known financial institutions. In the two situations, I wasted several months attempting to have the error corrected using the normal channels, first with the credit bureaus and then directly with the creditors. I also used a organization which markets quite a lot as being able to correct your credit file errors and they just repeated the actions that I had by now done. I then identified the ultimate solution. I sued the lenders and credit bureaus in small claims court.
This solution is enormously effective for several reasons:
a. In some states, your creditor won't be able to get rid of an individual as easily as they would like. Normally, any official legal action is managed by their legal department and they have a well structured process for replying through legal channels. However, in a few states their overpaid legal professionals are of no value as attorneys are not allowed inside small claims court. Therefore the financial institution, to be able to appear or respond, must do so using non-legal staff. This is inconvenient and costly for them since they don't have a system for this. It's much simpler for your financial institution to simply resolve your credit report.
b. In states where they are able to use their legal division to respond, the hardship for the lender is that the response has to be by physical appearance at a court hearing. This is costly because a person might need to hop on a plane and invest plenty of time and expense in handling your complaint. It's much easier for the creditor to simply repair your credit history.
c. Filing a formal law suit could be the only way to obtain the attention of anyone with brains as well as power at the lender. Until you do so, you'll be working with clerks and employees ordered not to think who basically repeat the same organization policy over and over and you get nowhere fast. Once you get the attention of thinking individuals, on many occasions it becomes immediately clear for them, that they need to fix your credit profile.
d. You have the attention of the right people and make yourself a thorn in their posterior for under one hundred dollars, which is the typical cost of processing a suit in small claims court.
Consequently, individuals can either spend months of time and have a lot of grief along with irritation or obtain my e-book that explains in detail how to correctly file the action within small claims court, get the claim to the correct individuals and have one's credit profile fixed within sixty days.