Credit Repair Warning
Several studies show that 1 out of 4 consumer credit reports contain errors that will result in the consumer becoming declined for credit. While this is a serious reality, what is more serious is what Truly occurs when these customers truly dispute these errors on their report with the Credit Bureaus. Several “Consumer Protection” and “Consumer Rights” groups try to make customers really feel confident by explaining that any errors on their credit report have to be…”Investigated” by the credit bureaus and… any data which the bureaus are UNABLE to verify within 30 days, ought to be DELETED from the consumers report. All that is required to make this take place is the consumer need to mail a letter (or go online) in order to “initiate” the investigation procedure. Sounds wonderful… since you’ve probably heard it prior to. When most Americans hear the word…”INVESTIGATION” in regards to an item on their credit report they’re difficult, they usually picture some variation of the following 3 step method:
STEP 1: An employee at the Credit Bureau receives their dispute and personally reviews it. During this review they gather info and documents in regards to the disputed account by contacting the original creditor or collection agency etc. (a.k.a. the Information “Furnisher”).
STEP TWO: The Credit Bureau Employee then reviews copies of original documents like the Credit Application, Billing Statements, Billing and Payment Statements or notes in the account looking for any errors in reporting. If anything is in question they will request proof from the “Data Furnisher.”
STEP 3: Once a “complete and thorough” investigation has been completed, the Credit Bureau Employee will then update the customers account according to the results of the investigation.
Now, let’s speak about how it Truly works. 1st: A dispute letter is created by either…You, An Attorney or A Credit Repair Company. And it’s then mailed to the Credit Bureaus. It doesn’t really matter who mails the letter simply because… SECOND: When the letter is received by the Credit Bureau it’s electronically scanned with “Optical Character Recognition” and… matched against a DATABASE of…”Boiler Plate” Dispute Letters generally employed by Credit Repair Organizations or found in Software Programs and Credit Repair Books. If your letter “matches” 1 of these letters in their database your dispute will most likely be…
a.)Flagged as FRIVOLOUS
b.)Marked as SUSPICIOUS, or
c.)Totally IGNORED
If you’ve employed a Credit Repair Company or Dispute Letters out of Credit Repair Books you may well have firsthand encounter with this. THIRD: No matter who writes your dispute letter or how threatening it could sound, if the SCANNED version of it does NOT match that of a “Boiler Plate” Dispute Letter utilised thousands of times, the scanned version will then be sent electronically overseas for processing in a country like: India, Jamaica, Philippines or Costa Rica. There, an outsource employee who doesn’t even speak English as their native language will look at your scanned dispute and turn it into absolutely nothing but a TWO or 3 Digit Code. Yes, you heard that correctly. They will take your dispute (even if it has 10 pages of detailed documentation supporting your claim) and convert it into nothing but a… TWO or Three Digit Code And, to make your blood boil even more, they do this with a extremely automated program the Credit Bureaus developed known as e-Oscar which (get this) stands for… E-lectronic O-nline S-olution (for) C-omplete (and) A-ccurate R-eporting
The e-OSCAR system takes your dispute and generally uses a pull down “Choose List” to convert the dispute into just 1 of 26 Various Dispute Codes. Even worse, of these 26 Dispute Codes, 85% of disputes will fall under the same five codes. For example, according to testimony from congressional hearings, credit bureaus utilized the following codes in these percentages with the e-Oscar program:
31% of Disputes “NOT MINE”, 21% of Disputes “ACCOUNT STATUS”, 17% of Disputes “INACCURATE INFORMATION”, 9% of Disputes “ACCOUNT AMOUNTS”, 7% of Disputes “ACCOUNT CLOSED”
85% of Disputes fall under same five Codes
When your dispute is converted to 1 of the “Standardized Dispute Codes” inside the e-Oscar method, the code is sent to the Data Furnisher (a.k.a. the Original Creditor or Collection Agency) making use of a standardized form known as an “Automated Consumer Dispute Verification Form” (or ACDV for short). This request is sent to the Information Furnisher via the e-Oscar Program. An ACDV merely consists of a few items of identifying information about the consumer, the Dispute Code and in some instances, additional notes. Any supporting documentation like, Account Applications, Canceled Checks, Billing Statements or Pay Off Letters or Confirmations etc. are NOT included in these electronic communications between Information Furnishers and the e-Oscar Method. Your dispute is basically converted into nothing but a “Dispute Code”. In reality, there is…NO MECHANISM IN Location for the Credit Bureaus to send your Supporting Documents and Proof of your claim to the Information Furnishers! So, what occurs when a furnisher receives an “Automated Consumer Dispute Verification” (ACDV) from the e-Oscar System? “Do they start an “in-depth” investigation?” “If the furnisher is a Collection Agency do they contact the Original Creditor for Actual documentation on the account?” Hardly… remember, the data furnisher will in no way even obtain nor see all the documentation in your dispute (even if you sent 60 pages of proof).
In fact, there’s a new piece of technologies to even further automate the e-Oscar Program for Information Furnishers and it is referred to as…BATCH INTERFACE. Data Furnishers like large banks and collection agencies can obtain thousands of disputes a month. Dealing with all these disputes manually via the e-Oscar System speedily becomes A LOT OF Function, e-Oscars solution to the difficulty is to send the Information Furnisher all these disputes in 1 big file, all at 1 time. This is what the BATCH INTERFACE function was developed for. Now, when the data furnisher receives this large file there are many possibilities for processing the data. One such choice is some thing referred to as…REPLY ALL. REPLY ALL permits the data furnisher to select a response like…”Account Verified”, and apply this response to dozens or even hundreds of records in the file with a single push of a button. But if this doesn’t have you fuming enough, then maybe an additional feature will. And, that feature is one known as…AUTO POPULATE. The “Auto-Populate” function allows the data furnisher to Auto Populate responses of Automated Consumer Dispute Requests prior to submitting them back to the credit bureau via the e-Oscar Method. Of course, we all know the Fair Credit Reporting Act (FCRA) states that all Data Furnishers Should perform a REASONABLE INVESTIGATION. Then again, perhaps it all depends on what one calls a “reasonable” investigation and how reasonable it can be when AUTOMATED. So, if you’re ready to find out the Truth about the fastest way to improve your credit score so you can get…The Cash You Require for a Organization and Purchase The Property You Not Only Adore But would Really like to LIVE IN!
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