GOT THE CREDIT REPORT BLUES?

 

MY CREDIT IS ALL MESSED UP! 

I hear complaints everyday from my clients about issues with their

credit reports.  The worst time to start dealing with these issues is when you are in the process of making a purchase.  It makes sense to check your credit report at least once a year and handle the mistakes as they come up.  The following information from one of my mortgage brokers should be helpful to get the ball rolling ... the process just got EASIER and FASTER. 

 

To get you FREE Credit Report you can check either of these two sites:

 

AnnualCreditReport.com

CreditKarma.com

After reviewing your credit reports, if you find any errors or discrepancies, you must first notify each of the credit bureaus in writing.  Then you can begin the process below. 

 

The Consumer Finance Credit Bureau (CFPB) now allows consumers to “directly dispute” misinformation by directly uploading their complaints on line.

 

"The Bureau has the power to conduct (costly) administrative reviews, levy fines and provide information to consumer rights attorneys for the sake of class action lawsuits".

 

To begin the complaint process click here CFPB 

Below are the most common examples of misreporting:

 

a) Information is “not creditor’s

b) Belongs to someone else, identity theft, fraud, etc.

c) Account terms are reported wrong

d) Creditor name/info, balance, payment, etc.

e) Account status

f) Paid bill on time, account closed, etc.

g) Wrong date of birth, address, etc.

h) Inaccurate public records (Bankruptcy, judgments, etc).

i) Reinserted (previously deleted) information

j) Credit Reporting company's investigation was flawed

 

To dispute an issue, the consumer must first order a credit report from each bureau and file a dispute for each derogatory item with the specific credit reporting bureau.

 

Once the bureau has reviewed the filing, they must (within 30 days) inform the consumer the results of their investigation.

 

Assuming the investigation is negative, the consumer should appeal to the CFPB for relief.

 

The uploading of any supporting documents online directly to the agency expedites ('starts" the clock ticking") the process by bringing pressure on credit bureaus, collection agents and credit vendors.

 

It's just easier for all involved to delete a consumer's derogatory item rather than risk sanctions.

 

Those documents are (but not limited to):

 

a) Incorrect part of credit reports, payment records, cancelled checks, court documents, birth certificates or other identity verification documents.

 

b) To add pressure I recommend the borrower/ buyer includes a cover letter (and subsequent purchase contract) explaining the sensitivity and timeliness of a quick response.

 

All too often unethical bill collectors target and pressure innocent borrowers and borrowers with common surnames, to pay illegitimate debts just to raise their credit scores.

 

Collection agents coldly calculate the pressure of losing an earnest money deposit (and the home) to bully innocent buyers into paying an (unjust) outstanding balance just to close escrow.

 

NOTE: If the debt is legit it’s CRUCIAL that the debt be paid ONLY thru escrow.

 

Charlie Hoffmann

Team South Bay Realty

310-378-4440