July 30th, 2015 3:02 PM by Linda Barratt PA and Justin Cervantes, PA
Do you know how the Credit Bureaus handle problems?
Technology is outpacing the needs of consumers. As a consumer, sometimes we need a little face-to-face or individual attention. Unfortunately, the credit bureaus are more focused on their bottom lines, cutting costs, and streamlining processes despite the consequences to consumers.
When consumers have a problem or issue with an account reporting incorrectly, they can file a "dispute" with the credit bureaus.
Here’s a quick overview of the dispute process ‘transformation’:
Originally the Credit Bureaus would send out a letter to have the business or Courthouse verify the information that they had on file. If they could not provide the correct documentation, then the item was removed from your report(s). The system was fair as everything disputed was observed and validated by a person.
Then the Credit Bureaus went “electronic” and began verifying information through documentation via email. This system increased the number of errors. The problem was there was a higher percentage. Simply because it was mostly done via electronics.
Now the Credit Bureaus, in their continuation of cost reduction and increased revenue, have gone to a system called e-Oscar. (Online Solution for Complete and Accurate Reporting)
The new system of verifying people’s disputes has basically removed humans from the process (except for the people who program the software)!
Example:
You dispute something with the three major credit bureaus and provide documentation. e-Oscar “reads” that dispute and sends it off to the reporting company using a three digit code. The reporting agency then responds with a three digit code as to whether it should remain on your credit report or not and what the “status” is.
No actual person has even looked at your documentation and verified the information!
How do you like that treatment? Feel like you've been reduced to a number...you have.
Until next time...JJ
Information courtesy of New West Credit Consultants