Hello credit geeks!

Ok, so… are you working on repairing your credit? Great! So, you’ve got your letters to the credit bureaus typed up (or hand written, even better) and they are off in the mail with all of your supporting documents.  Well done!!

Now what? Well, first you hope you addressed the envelope correctly and second, you very much hope it makes it to the dispute resolution department.

The problem is that the bureaus DO NOT address disputes on their own. That’s right gang, it is very possible that an Equifax employee isn’t even looking at your dispute. Chances are, that task has been outsourced to a third party.

That may change in the future. The New York State Attorney General recently reached a settlement with the three credit bureaus. Eric T. Schneiderman’s breakthrough decision should have a very positive affect for folks who are in need of correcting inaccurate information on their credit report. Here’s an excerpt from the original NY Times article:

 Even though consumers are entitled to dispute any inaccurate information in their credit reports, the entire process has been criticized by consumer advocates for years: The bureaus often outsource thousands of disputes daily to workers overseas who generally are told to translate the problem into a two- or three-digit code that is fed into a computer; the code and any documentation are sent to the creditor. If the creditor verifies the information, no further investigation takes place.

Now those automatic rejections will no longer be tolerated. And specially trained employees will have to review all supporting documentation submitted by consumers involving mixed credit files — in which a consumers’ file is blended with another person’s report — fraud or identity theft.

Source: NYTimes article. 

Unfortunately, these changes will take a while. They are to be put into place over the next 6 months to 3 years, so we may not see the fruits of these policy changes for years to come. Then there’s the function of ensuring the agencies have actually made the changes. Government oversight may be the only way. 

More questions? Hit us up, we’d be happy to help. 

Be well, 

Credit Dr.

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