Thursday, August 10, 2006
Regulators’ Report to Congress on FCRA Dispute Process
Report to Congress on FCRA Dispute Process
“… CDIA provided the full list of codes to the FTC and the Board but declined to release the list for use in this report, citing concerns that the codes are confidential and that credit repair organizations would misuse their knowledge of the dispute codes to have accurate information removed from consumers’ files. ...”
I’m so sick of that BS. Every consumer should be able to select whichever codes apply to the disputes.
“… Approximately 100 consumers submitted comments in response to the Board’s Federal Register notice. ...”
That’s a rather poor showing. 200,000,000 consumers, at least 150,000,000 have incorrect or incomplete data on their reports, and only 100 bothered to take a few minutes to conveniently submit their complaint online.
Typical.
The comments submitted to FTC:
http://www.ftc.gov/os/comments/FACTA-furnishers/
In their ultimate stupidity, the regulators decided to have MULTIPLE agencies accept comments at DIFFERENT URLs and therefore you’re MISSING many comments cited in the report.
So here are just a few comments submitted by consumers:
“Yes I have tried numerous times to get inaccurate information from Verizon removed. I Faxed orders showing that I was givin an assignment overseas so I was no able to get my mail for several months, since I was in the military and that we move so much there is no way I knew about the last bill. I told them that I thought it was paid off but they weren’t having that.They insisted that it I was puposely trying to avoid paying. Even after paying the company the would NOT take off the negative information. Its companies like these that would rather put something on someones credit and take little interest in correcting their mistakes. Thank you Lt. Burleson (US ARMY)”
Request for the reporting of ALL credit limits
Have credit reports list ALL credit limits. For example, on my Capital One card (and on some AMEX’s) credit limits are never reported making it look like I am maxed out (whether its a $1,000 balance or a $1 one) or past maxed out on some credit cards which is totally not the case! This is a disadvantage to all consumers. I almost went to the NY Attorney General to report this. Regards, Alfred
Require furnishers to post a bond
About “accurate” credit scores
... I would propose that each and every furnisher of individual credit information be required to purchase a surety bond in order to be able to furnish consumer credit information. If it was found out they the furnisher had submitted false information to a credit reporting agency then that surety bond should be revoked and their ability to furnish creditor information be suspended for a time determined by the Government. This idea would not cost the furnisher unless they were shady, in fact it is an idea of proactive intervention instead of reactive as it has been for years. When one has to pay to report and then have that hanging over their head as a symbol and a reinforcer of conditioning then furnishers of consumer credit will be more likely to ensure valid and accurate consumer credit information to reporting agencies. Surety bonds should be based upon the size of the furishers portfolio of consumer credit information. ...
Please include having the ability to dispute inaccurate information on your credit score. For example, I have been told by the credit bureaus that credit score is a direct reflection of your credit report but it cannot be disputed under the Fair Credit Reporting Act. If one purchased a credit score, one can find that there are several credit scores available to lenders and it is almost impossible to argue any inaccurate information. If a credit report contains inaccurate information and one can prove to the lender that there is inaccurate information, sometimes the lender will consider the correction but credit scores never change to take this into consideration. My suggestion is to also include in this law a mandate to have accurate credit scores and access to all credit scores types available to consumer just like the free credit reports.
A bank manager’s concerns about medical collections
... The issue that concerns me most, as a consumer and as a banker, is the way that some reportable industries, namely the medical industry, submit negative information on a consumer with no regard to such things as pending insurance payments, or payments made by insurance companies that were of an incorrect amount. These issues can take at least 30 days to process and often take more than 120 days for the medical office to receive, all while the outstanding amount is being reported negatively to the patients credit file. New rules involving the delay of collection efforts (including negative reporting on the consumers file) on medical claims until a certain time frame, would be helpful in preserving the integrity of a consumers credit file. I understand and sympathize with the argument by the billing offices that the delay will cause significant losses in the 30,90, or 120+ days that it takes to collect from insurance companies. However, I’ve known few consumers who pay in the face of collection efforts out of their own pockets when an insurance payment is due any day. By all means report people who simply do not pay. As I analyze credit reports it’s obvious that an honest consumer is getting hit on three sides by the medical office, insurance company, and the credit reporting agencies as they try and to take care of the above situations. Thank you for your time, and the opportunity to submit concerns. Sincerely, Brock Fletcher Bank Manager
Lending Tree multiple inquiries lowered scores
Dear Commissioners, The processes of the credit verification companies such as Experian and Equifax are unfair. I began an application for home equity credit through Lending Tree. 5 banking institutions contacted me. They had different products that I couldn’t really compare. My contractors had not given me firm bids. I didn’t apply for a loan from any of the banks. Prior to the application, Experian gave me a rating of 801. After I received bids for improvements to my home, I contacted USAA and CitiBank. They provided me with information that showed that as a result of not completing applications through Lending Tree, my credit rating fell to 780. I also found that my rating at Equifax fell. I attempted to contact Experian through the toll free number they supplied to clarify my credit. I couldn’t reach a person. I also asked the banking agent at CitiBank to find a way for me to speak with Experian as Experian is a CitiBank subsidiary. He never got back to me. I completed a loan application with USAA. However after the experience I had, I write to protest the business practices of the credit rating agencies. I feel that customers should have a way of protesting a change in their credit at minimum. I believe that the decisions I made showed financial restraint and prudence and the credit rating companies penalized me for that unfairly. Given the penalty they assessed to my credit rating, I feel I should have the satisfaction of dealing directly with a senior officer of their companies so that someone in their organization will feel the personal accountability of misrepresenting my reputation. Sincerely, Andrew Hsi
Reporting credit limits for accounts with “no limit” (Am Ex)
I suggest requiring that all lenders who report information to the credit bureaus must report a standard set of data instead of allowing them to choose what data to report, as they currently can choose to only report negative information while witholding positive information. Specifically, they must report all on-time payments, the outstanding balance during each cycle, and the total credit line available (for revolving and charge accounts).
Special attention needs to be paid to revolving accounts with no preset spending limit. Currently, the lenders report a total credit line of $0, but this behavior hurts consumers’ credit scores. Although the lenders claim the accounts have no preset limit, they actually do have a preset maximum on the amount that can revolve each cycle, and any balance exceeding this limit needs to be paid in full at the end of the cycle. Forcing lenders to report this “soft limit” as the credit line for these accounts would be a fair and equitable arrangement for all.
Original creditors NOT updating after sale of account
Both the original creditor and the creditor that my account was sold to show on my credit reports. Both are reporting the same negative information. Once an account has been sold, the original creditor should no longer be able to show the negative information. The account was settled with the second creditor and they show that the account has been settled, but the original creditor does not, so it appears to be an unsettled, bad debt. The original creditor should be forced to either update the account or remove it completely.
Bank of America refused to update a charge-off after it was paid
Bank of America refused to correct an error on my credit reports even after numerous attempts to correct it. Bank of America sued me over an unpaid credit card balance and we set up a payment plan through the lawyers that they hired, Zakheim and Associates. But, even after this debt was completely settled and paid off, they kept reporting that I still had an outstanding, delinquent balance of about $380. They kept telling me that it would show as being correct in 30-60 days but this went on for almost 2 years with no correction. I had to have Bank of America’s legal department send me a letter that I could show mortgage companies that the account was resolved and there was no outstanding balance. This had to be done the past two times that I bought a house. This negative information could have been keeping my credit score down even though the account was resolved. After two years of me contacting Bank of America they finally processed this correction to the credit bureaus, but there is no telling how much that one error cost me in interest payments over those two years that I purchased multiple cars and two houses.
Wells Fargo continues to update derogatory information by a bank they purchased (Norwest Bank) while I was in chapter 13 Bankruptcy every time I dispute the information as a candidate for deletion. The Chapter 13 Bankruptcy was filed over 7 years ago on 9/3/1998 and all other accounts and records pertaining to it were removed last year except the derogatory information from Norwest Bank. Wells Fargo continues to update it with Transunion as “Chapter 13; wage earner account” when the bankruptcy it references is nowhere to be found in my credit file. I plan to submit a consumer statement that the account was discharged by Chapter 13 Bankruptcy on 12/12/2002 that was filed on 9/3/1998 (over 7 ? years ago) to explain the entry. This derogatory information is only on the Transunion credit report with a reporting date of 08/01/2003 and plan to keep it on my record for 7 years from that date. I have provided copies of the Bankruptcy, accounts, and discharge to both Transunion and Wells Fargo, but can’t get the information removed. They seem to only verify that the account was included in Chapter 13 bankruptcy and not that it was “Discharged” or that the information is over the statutory limit for Chapter 13 Bankruptcy derogatory information.
Equifax REFUSING to communicate with consumer
For over three years Equifax provided erroneous information to those asking for my wife’s credit information because they had an incorrect social security number on file and would not fix the problem. This caused delays in opening an IRA and other accounts. Equifax first told my wife when she requested a free copy of her credit report that: REASON A “information you provided as proof of your identity does not mach your information currently on file.” After she sent them the required information a second time, they replied that: REASON B “We were unable to locate a credit file.” It took a total of 5 letters to Equifax and the FTC to get this matter resolved, and at no time did they admit their error nor did they provide a way for my wife to speak so someone that could correct the problem The three credit agencies must provide a tool free number where consumers can call if they are not able to get into the system. Presently, Equifax will not provide a tool free number until is has provide you with a Confirmation Number, and in my wife’s case, they refused to provide such a number because or REASONS A and B above. I was finally able to get an Equifax representative on the phone by providing my Confirmation Number.
Palisades incomplete and incorrect reporting of collection as revolving account
I can’t get Equifax to report a collection account properly. Palisades is reporting this as a revolving account with no opened date, and as a paid collection. They are also stating that they are a factoring company. Equifax is reporting this as a open account, 120 days past due , with zero dollar past due and the date opened field is blank.
Alltel collection after billing problems
I obtained cellular service from Alltel in Dec 01 with a 2 year agreement. I immediately began having billing problems. After several months of working with Alltel about their erroneous billing, I verbally contacted them and requested they waive my disconnect “penalty” and disconnect my service. They refused and were very verbally abusive over the phone.
I then contacted an attorney and had him write a letter explaining the above. He requested they disconnect my service and waive the disconnect fee.
My service was then disconnected (phones stopped working) with no additional notice from Alltel. My account was paid up to date, so the cancellation by Alltel was in response to the above attorney letter.
2 months later, I was billed by Alltel for the disconnect fee. When I contacted Alltel, they failed to respond to any questions or comments, insisting I owed he disconnect fees. I refused to pay since they cancelled the service out from under me.
Upon my non-payment of the illegal disconnect fee, Alltel placed a negative statement on my credit report. Further efforts to clear this matter with Alltel went unanswered. I have tried numerous times with the credit agencies, but they have failed to utilize any documentation I provide (such as a copy of the attorney letter) to investigate my case against Alltel.
The credit agencies do a dis-service to consumers, especially with the obvious power which reporting firms possess to make an untrue report against whomever they please.
If any supporting information is required, I can be reached via mail.
Neither furnishers nor CRAs have an interest in ACCURATE reporting
It would seem that some of the creditors will take for ever to resolve issues, and even then they drag their feet even more, they have no interest in cleaning up errors. This appears to be because they have nothing to loose by delaying issues. The credit bureaus them selves also seem to have the same issue. They have no interst in correct data, and since it costs the same right wrong, no interest in clearing up issues. Some also seem to have a long term issue with getting current data. They will spend several months before data catches. They also seem to not care, and might even be profiting from the issues that they help create along with their partners, the creditors. This is the biggest example of garbage in garbarge out, and the cost to the economy is enormous is lost business, and fraud that perpetuates the process.
http://www.ftc.gov/os/comments/FACTA-furnishers/522110-00040.htm
l believe that a system should be in place that requires companies to accurately report ALL information regarding a particular account. This may be the current rule, but it is not being followed. Not only should this include information such as payment history, date opened, and such, but also the CREDIT LIMIT of the said account. By listing an account with no credit limit, the credit card company is keeping the consumer for benefiting from the effects of low credit utilization, thus damaging the consumers FICO scores and in many instances, preventing them from gaining additional credit. Several companies (Capital One being at the top of the list) simply REFUSE to report an accounts credit limit regardless of the consumer requesting the the limit be reported. If an account is going to be reported, it should be with the requirements that the account be 100% accurate in all ways, shapes and form. Thank you
-- Well said!
Credit - Collection - Economic News • (1) Comments • Permalink
