The 60 Minutes TV program recently reported the high number of problems in consumer credit reports. While a substantial amount of these are errors that can be remedied with the regular routes of writing the credit bureau, thousands of people are unsuccessful in getting the errors removed from the credit reports. The result can be not just expensive but life-changing:
a. Inability to secure a mortgage loan to get a house as well as an auto or schooling b. A reduced credit rating requiring larger payments with regard to loans you do get c. Continuous difficulties when it comes to id theft
The problem is that the credit report agencies will just take the customer's complaint and pass it on to the creditor, i.e. the bank.The financial institution then sends back data for the credit bureau that the data in the credit bureau's records agrees with the information of the financial institution. Case shut: the consumer is advised tough luck. So the system which explains to people to start with the credit reporting agencies to fix mistakes within their credit report is only a waste of time because the credit reporting agencies will resolve nothing and simply report data the creditors provide them. The much better strategy is to go straight to the creditor to take care of their information.
Of course, in the majority of instances, the financial institution will just claim that their documents are correct so you, the consumer, are simply wrong.
I had this specific instance happen to me twice, with two well-known financial institutions. In the two situations, I lost many months trying to have the error corrected using the typical methods, first with the credit agencies and then directly with the lenders. I even used a firm which advertises prolifically as being able to correct your credit report errors and they simply replicated the actions that I had previously carried out. I then identified the best remedy. I sued the lenders and credit bureaus in small claims court.
This specific solution is enormously efficient for a number of reasons:
a. In some states, the creditor won't be able to dispense with an individual as quickly as they would like. Usually, any official court action is managed by their legal division and they have a nicely structured course of action for replying through legal channels. However, in some states their overpaid attorneys are of zero value because lawyers are not permitted in small claims court. So the lender, in order to appear or even reply, must do so using non-legal employees. This is undesirable and costly for them since they don't have a system for this. It's much easier for the creditor to simply correct your credit file.
b. In states where they are able to make use of their legal department to reply, the problem for the creditor is that the reply must be by appearance at a court hearing. This is costly because an individual may well need to get on an airplane and invest a lot of hours and expense in dealing with your complaint. It's easier for the creditor to simply repair your credit report.
c. Filing a formal legal action is the only way to get the attention of anyone with brains as well as authority at the lender. Before you do, you will end up dealing with first level administrative staff and automatons that basically repeat the identical company policy over and over and you get nowhere. Once you obtain the attention of thinking people, oftentimes it becomes immediately clear for them, that they need to change your credit report.
d. You get the interest of the correct individuals and make yourself a thorn in their butt for less than one hundred dollars, which is the typical expense of filing a suit within small claims court.
Consequently, folks can either spend months of energy and have plenty of despair along with irritation or get my e-book which describes in detail the best way to effectively file the action within small claims court, get the suit to the proper people and have one's credit report fixed within sixty days.
a. Inability to secure a mortgage loan to get a house as well as an auto or schooling b. A reduced credit rating requiring larger payments with regard to loans you do get c. Continuous difficulties when it comes to id theft
The problem is that the credit report agencies will just take the customer's complaint and pass it on to the creditor, i.e. the bank.The financial institution then sends back data for the credit bureau that the data in the credit bureau's records agrees with the information of the financial institution. Case shut: the consumer is advised tough luck. So the system which explains to people to start with the credit reporting agencies to fix mistakes within their credit report is only a waste of time because the credit reporting agencies will resolve nothing and simply report data the creditors provide them. The much better strategy is to go straight to the creditor to take care of their information.
Of course, in the majority of instances, the financial institution will just claim that their documents are correct so you, the consumer, are simply wrong.
I had this specific instance happen to me twice, with two well-known financial institutions. In the two situations, I lost many months trying to have the error corrected using the typical methods, first with the credit agencies and then directly with the lenders. I even used a firm which advertises prolifically as being able to correct your credit report errors and they simply replicated the actions that I had previously carried out. I then identified the best remedy. I sued the lenders and credit bureaus in small claims court.
This specific solution is enormously efficient for a number of reasons:
a. In some states, the creditor won't be able to dispense with an individual as quickly as they would like. Usually, any official court action is managed by their legal division and they have a nicely structured course of action for replying through legal channels. However, in some states their overpaid attorneys are of zero value because lawyers are not permitted in small claims court. So the lender, in order to appear or even reply, must do so using non-legal employees. This is undesirable and costly for them since they don't have a system for this. It's much easier for the creditor to simply correct your credit file.
b. In states where they are able to make use of their legal department to reply, the problem for the creditor is that the reply must be by appearance at a court hearing. This is costly because an individual may well need to get on an airplane and invest a lot of hours and expense in dealing with your complaint. It's easier for the creditor to simply repair your credit report.
c. Filing a formal legal action is the only way to get the attention of anyone with brains as well as authority at the lender. Before you do, you will end up dealing with first level administrative staff and automatons that basically repeat the identical company policy over and over and you get nowhere. Once you obtain the attention of thinking people, oftentimes it becomes immediately clear for them, that they need to change your credit report.
d. You get the interest of the correct individuals and make yourself a thorn in their butt for less than one hundred dollars, which is the typical expense of filing a suit within small claims court.
Consequently, folks can either spend months of energy and have plenty of despair along with irritation or get my e-book which describes in detail the best way to effectively file the action within small claims court, get the suit to the proper people and have one's credit report fixed within sixty days.
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