"Why the Credit Bureaus Can't Get It Right" -- article by SmartMoney magazine

[MojaveMoon]

http://www.smartmoney.com/Spending/Rip-offs/Why-The-Credit-Bureaus-Cannot-Get-it-Right/

This article contains some really really important information including some things that I bet a huge portion of the general public is completely unaware of. Are you aware of how, in general, your disputes are handled ? and that your entire written dispute is summarized by a two digit code ?

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To sort the good from the bad, the industry sends almost everything through the automated system e-OSCAR (Electronic Online Solution for Complete and Accurate Reporting), which forwards consumer disputes to lenders for verification.

Here’s where the trouble begins. Rather than call the lender or send it the consumer’s letter and supporting evidence, the bureaus zap the documents to a data processing center run by a third-party contractor. This system yields considerable savings. Equifax reduced its per-dispute cost from $4.50 to 50 cents by outsourcing the work to Costa Rica and the Philippines, for example. But consumer advocates say these workers are under enormous pressure to process disputes and forward them to lenders as quickly as possible. While the bureaus say quality is the overriding factor, employees deposed in civil suits describe a harried pace. One TransUnion manager testified that workers were expected to complete up to 22 cases an hour. An Equifax worker estimated she was allotted four minutes per dispute. To process the letters so rapidly, the workers summarize every complaint with a two-digit code selected from a menu of 26 options. The code “A3,” for example, stands for “belongs to another individual with a similar name.” The worker can also add a single line of commentary. The two-digit code and short comment is the only information the lender receives about the dispute.

Consumer advocates say these summaries omit the background banks need to understand a complaint, and banks agree.

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Message Edited by MojaveMoon on 02-02-2009 11:03 PM

[mymoneynow]

I found this article very interesting since I am having issues with EQ. There is a double standard going on as reported in the article- Elected officials get VIP service from CRAs, OH WHAT A SHOCK! Not! Of course they get VIP treatment, that way they will not be too quick to act on consumer's complaints about CRAs. It just amazes me that this kind of shoddy reporting and verifying disputes can continue when this info, when incorrect, has a direct effect on the financial  situation for everyone. So much is outsourced, no wonder there is rampant identity theft going on.

"Not every dispute sent to a credit bureau gets the e-OSCAR treatment. Some complaints get extra attention. Experian says it sends disputes to its “special assistance service” department when consumers have “unusual problems” or an elected official requests consideration for a constituent; Equifax says it handles disputes relating to public figures and court cases with “additional processing procedures.” TransUnion declined to provide details on its VIP service, but its employee manual instructs workers to use “priority processing” if a letter comes from a “judge, senator, congressman, government official, attorney, paralegal, professional athlete, actor, director, member of the media or a celebrity.” If your case is assigned this status, it may be given to a dedicated rep who will make phone calls on your behalf. But there’s no guarantee of a successful resolution. “I have a lot of cases that go to special services, and they still mess it up,” says Robert Sola, a Portland, Ore., attorney."

[MattH]

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@mymoneynow wrote:

I found this article very interesting since I am having issues with EQ. There is a double standard going on as reported in the article- Elected officials get VIP service from CRAs, OH WHAT A SHOCK! Not! Of course they get VIP treatment, that way they will not be too quick to act on consumer's complaints about CRAs. It just amazes me that this kind of shoddy reporting and verifying disputes can continue when this info, when incorrect, has a direct effect on the financial  situation for everyone. So much is outsourced, no wonder there is rampant identity theft going on.

"Not every dispute sent to a credit bureau gets the e-OSCAR treatment. Some complaints get extra attention. Experian says it sends disputes to its “special assistance service” department when consumers have “unusual problems” or an elected official requests consideration for a constituent; Equifax says it handles disputes relating to public figures and court cases with “additional processing procedures.” TransUnion declined to provide details on its VIP service, but its employee manual instructs workers to use “priority processing” if a letter comes from a “judge, senator, congressman, government official, attorney, paralegal, professional athlete, actor, director, member of the media or a celebrity.” If your case is assigned this status, it may be given to a dedicated rep who will make phone calls on your behalf. But there’s no guarantee of a successful resolution. “I have a lot of cases that go to special services, and they still mess it up,” says Robert Sola, a Portland, Ore., attorney."

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I notice the list of who gets special status includes paralegals so perhaps ordinary folks can get treated better by getting a lawyer, any lawyer, to write a letter for them.

[Lel]

I saw this article come up today. It really explains my experience trying to get an inaccurate entry deleted from my Equifax profile. It took me about 5 years (yes, years) to get a Verizon account removed that was listed as a charge-off. I got them to remove it once, then it reappeared the next time I pulled my report. They then said that the account really belonged to me. Eventually, I used the word "fraud" in my dispute, and that seems to have gotten it taken care of - for now. We'll see if SW reports anything funny in the future.

[mymoneynow]

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@MattH wrote:

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"Not every dispute sent to a credit bureau gets the e-OSCAR treatment. Some complaints get extra attention. Experian says it sends disputes to its “special assistance service” department when consumers have “unusual problems” or an elected official requests consideration for a constituent; Equifax says it handles disputes relating to public figures and court cases with “additional processing procedures.” TransUnion declined to provide details on its VIP service, but its employee manual instructs workers to use “priority processing” if a letter comes from a “judge, senator, congressman, government official, attorney, paralegal, professional athlete, actor, director, member of the media or a celebrity.” If your case is assigned this status, it may be given to a dedicated rep who will make phone calls on your behalf. But there’s no guarantee of a successful resolution. “I have a lot of cases that go to special services, and they still mess it up,” says Robert Sola, a Portland, Ore., attorney."

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I notice the list of who gets special status includes paralegals so perhaps ordinary folks can get treated better by getting a lawyer, any lawyer, to write a letter for them.

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IMO, ordinary folks should bring suit against the 3 CRAs for discrimination!  Why should an athlete or a celebrity get VIP treatment? Or anyone else listed? They have enough cash to make most purchases they need, unlike us ordinary folks! Paralegals was a bit surprising to me. Any paralegals here wanting to help your fellow fico members? 

[valley_man0505]

Ok, I can kind of see how people involved with the legal system or government should get special treatment, especially since the article says they sometimes "request consideration for a consituent", so it may not necessarily be for themselves.  However, why in the world should athletes or celebrities get special attention?

[oracles]

To me what is the most concerning part is these 3 companies can ruin your life.

They can cost you thousands of dollars and you have very little power to control it.

This is definitely power that should be more closely monitor. There should be extreme responsibility in making sure everything is accurate. However as we can see it is not.

Mind boggling

[valley_man0505]

My impersonation of the dispute process:

CRA: Is this debt valid?

CA: Yep.

CRA: Thought so.  Thanks.