We want to help!
- Bankruptcies
- Late Payments
- Repossessions
- Collections
- Foreclosures
- Charge Offs
- Judgments
The Credit Bureaus must remove inaccurate, untimely, and
unverifiable information from your credit reports based upon the
Fair Credit Reporting Act.
Common Questions
- Can I repair my credit report myself?
- Can I remove my bankruptcy?
- How much will it cost me?
- Is credit repair legal?
- What is your refund policy? More
Credit One Offers:
- No Hidden Fees
- Friendly Credit Specialists
- Unlimited Deletions
Return to listing of all Newsletter Articles
February 2010 Newsletter Article
Is the Credit Reporting System Flawless?
What we know today and what we have learned from several sources is that the “big three” credit bureaus (Experian, Equifax, and TransUnion) have been able to sway the marketability of their reports through the use of many devices and effective tools. Unfortunately, this produces flaws in our credit reporting system and consumers often pay dearly.
You might
ask, what is the purpose behind the credit bureaus doing this and also what
are these devices and how do they work?
Well, here are a few secrets the credit bureaus do not want the
public to know but only a few of us have learned.
First,
some of the devices the credit bureaus rely heavily upon are:
(1)
Internal security systems, (2) Optical Character Recognition (OCR)
Computers; the credit bureaus are using super-computers to speed up the
dispute process... OCR devices can read individual dispute letters and
respond accordingly to a pre-determined set of circumstances, (3) Subscriber
software to enhance the verification methods, (4) FACS (File Address Check
Service) and, (5) Checkpoint-messages.
Checkpoint-messages appear on more than 90% of credit reports
reviewed by consumer-relation departments. Checkpoint-messages are often
generated as a result of an operator input error.
Yes, you read that right…operator
input error. It is not
uncommon for a clerk, data processor, or even a supervisor for a large
merchant or subscriber, to make a goof when entering data onto your credit
report.
Why do
you need to know these things?
Although the Fair Credit Reporting Act (FCRA) deals specifically with the
reporting of adverse information, it does not properly address the reporting
of positive information. Negative
information is collected by five distinct methods; computerized, manual
forms, instant update, inquires, and public records.
Positive information is generally
obtained by only one method; computerized.
Negative
information is placed on a credit report for a period of seven to 10 years
and longer if the negative information contains unpaid tax liens. Positive
paid accounts can be deleted from credit reports in as little as 5 years.
For inquires, there is no law in effect with the FCRA however the
Credit Bureaus have decided inquires remain on credit reports for up to 2
years.
According
to the Consumer Credit Commission at one time, the credit bureaus had as
many as 60 categories of reporting credit history of which only three were
of a positive nature. And the credit
bureaus are highly selective in their acceptance of positive information.
Experian,
Equifax, and TransUnion are extremely competitive amongst one another, and
while their true customers (Merchants, Creditors, Subscribers, or
Furnishers) may choose to report to only one credit bureau, chances are the
same subscriber will not report to all 3 credit bureaus.
Hence, you may have a different range
of scores as well as different grading scenarios on your credit report.
The credit bureaus
have developed an elaborate system to identify the character of a consumer
and this system looks at the
consumer’s ability to pay and their many habits.
Trade
secrets and proprietary information with regard to credit reporting is
safeguarded within the credit bureaus on a need to know basis.
In fact, credit bureaus have compartmentalized each of their
operations and marketing functions so their individual employees know only
small specific aspects of the business. Moreover,
this specific structure of power and influence within each department
further promotes an environment of secrecy.
Take for
example an inquiry placed on your personal credit file remains on the file
for 2 years.
The credit bureaus state that inquiries placed on your credit
file from the auto and mortgage industry, if placed within 15 to 45 days of
one another, only count as one inquiry.
The credit bureaus
have taught subscribers
through
workshops and publications (media) to view too many inquires as a danger sign, i.e., a credit risk. As a result,
having more than 2 inquiries is often cause for an application for credit to
be rejected based on a point score system.
Are you
beginning to understand the flaws with credit reporting?
Additionally, many consumers have complained that their specific
authorization was not given to a creditor to generate multiple inquiries
into their credit records. And
credit bureaus have, in many cases, declined to remove inquires through the
dispute process described in section 611 of the FCRA.
For example, the
Consumer Credit Commission has numerous cases relating to consumers applying
for credit with a major oil company.
After evaluating consumer credit reports, the oil company later
generated multiple inquires to prevent competitors from supplying those same
consumers with a line of credit.
The consumers then complained to the credit bureaus and were given a response indicating that inquiries must remain in their files for 2 years by law and nothing could be done to remove this requirement. This is a typical example of bureau/creditor abuse.
In conclusion, Credit One is very interested to hear stories of creditor abuse. If you, or someone you know, has a story to share relating to creditor abuse or the release of credit information without authorization by a Subscriber, Merchant, Auto Dealer, or Mortgage Company, please send us an email with the complete details. Send your story to CustomerService@Credit1Solutions.com.Return to listing of all
Newsletter Articles
How do we make credit repair easy?
Ever since the Fair Credit Reporting Act made credit repair possible, the credit bureaus have been working to make it complicated and difficult. Our twenty-five plus years of experience fighting the bureaus have helped us develop a vast arsenal of tools and strategies to make credit repair easy and effective-the way it should be.
