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 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.
