July 29th, 2014 by Damon DeCrescenzo
Don’t Dispute Online
Over the past few years, the credit bureaus have made it very easy for consumers to dispute negative information online. As in most decisions made by these companies, they did it to help themselves, and NOT the consumer.
YOUR CLIENT MAY BE GIVING UP SOME OF THEIR RIGHTS UNDER THE FAIR CREDIT REPORTING ACT AND DISPUTING ONLINE WAS CREATED TO MAKE THE CREDIT BUREAUS JOB EASIER!
1. Paper Trail – With online disputes there is no paper trail to show evidence of the details of the dispute.
2.Time – The credit reporting agency does NOT have to process an online request. An online dispute is processed via a electronic scanning system through E-Oscar with verification automatically forwarded to the data furnisher. The restrictive 30 day clock is accomplished easier if everything is automated.
3. Limiting Dispute Reasons – When disputing online The Credit Bureaus limit the number of “dispute reasons”, making an accurate description of your dispute more difficult.
4. “Expeditious Dispute Resolution” – This sounds good but it changes your clients’ rights under section 611a(8) the Fair Credit Reporting Act, the standard requirements and protection afforded to the consumer.
In the “Expeditious Dispute Resolution” section:
“the agency shall not be required to comply with paragraphs 2, 6, and 7 with respect to that dispute if they delete the trade line within 3 days.”
Paragraph 2 requires the CRA (Credit Reporting Agency) to forward your dispute and all related documentation you provide to the creditor. They rarely forward the documentation.
Paragraph 6 requires the CRA to provide you with written results.
Paragraph 7 requires the CRA to provide you with the method of verification on request from the consumer.
So why is this important?
The method of verification is used to protect your clients in the dispute process. This, along with the removal of getting written results can hinder your attempts to get information corrected and reporting accurately …. which is your right!
With all that being said, if you have proof of what is reporting in error or if its name, addresses, social security or birthday updates, by all mean online disputes may work just fine…but in the other 99% of the situations where this isn’t the case, disputing online isn’t the answer.
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