Dispute Letters

[ucmferguson]

I am an office manager at a mortgage company.  On a daily basis I work with customers that have credit issues.  I hear about these credit repair agencies all the time, but I don't believe in them.  I personally feel that if you want to buy a home, then don't let me see a car repossession last month on your credit.  If you can't pay your other bills, then why would you pay a mortgage?  It is not responsible to help someone raise their credit score just enough to qualify for home financing, knowing that their recent credit history shows that they don't pay the bills that they have!  

Sorry to vent there for a mintue.....Anyway, I have a couple of questions:

1)  Is it true that if an account listed on your report has one wrong number, the wrong balance, or has your name misspelled, you can have the account erased from your report? 

2) What are all of the acronyms that everyone is using?  (CRA, DV, SOL, etc.) Is there a place to find out what they mean?

4) How can I find out the laws in SC that involve credit reporting practices such as, how long a non-reporting inactive account can legally remain on the report, how long one account that has been sold multiple times between collection agencies can remain on the report, and so on?

5) Is there a FREE way to obtain letter templates to dispute inaccurate information on credit reports?  I have heard that you can dispute inaccurate items with a letter, but if it is not worded the correct way, the bureaus do not have to remove the account.

6) I do encourage my customers to pay off all negative credit.  However, I had a customer pay off several collection accounts, and her score dropped by 20 points.  I called the bureau,  and I was told the score dropped because of recent activity on a negative account eventhough the activity was paying the balance down to $0.  Will this really drop your score?

7) If a customer settles a collection account for less that what was owed, does this drop the score?  Or is it better to pay the full amount?  We all know that collection agencies only pay 10-30% of the original balance for the account, therefore you don' t owe that much money with them anyway.

Thanks for the input.  

[Anonymous]

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ucmferguson wrote:

I am an office manager at a mortgage company.  On a daily basis I work with customers that have credit issues.  I hear about these credit repair agencies all the time, but I don't believe in them.  I personally feel that if you want to buy a home, then don't let me see a car repossession last month on your credit.  If you can't pay your other bills, then why would you pay a mortgage?  It is not responsible to help someone raise their credit score just enough to qualify for home financing, knowing that their recent credit history shows that they don't pay the bills that they have!  

Sorry to vent there for a mintue.....Anyway, I have a couple of questions:

1)  Is it true that if an account listed on your report has one wrong number, the wrong balance, or has your name misspelled, you can have the account erased from your report? 

2) What are all of the acronyms that everyone is using?  (CRA, DV, SOL, etc.) Is there a place to find out what they mean?

4) How can I find out the laws in SC that involve credit reporting practices such as, how long a non-reporting inactive account can legally remain on the report, how long one account that has been sold multiple times between collection agencies can remain on the report, and so on?

5) Is there a FREE way to obtain letter templates to dispute inaccurate information on credit reports?  I have heard that you can dispute inaccurate items with a letter, but if it is not worded the correct way, the bureaus do not have to remove the account.

6) I do encourage my customers to pay off all negative credit.  However, I had a customer pay off several collection accounts, and her score dropped by 20 points.  I called the bureau,  and I was told the score dropped because of recent activity on a negative account eventhough the activity was paying the balance down to $0.  Will this really drop your score?

7) If a customer settles a collection account for less that what was owed, does this drop the score?  Or is it better to pay the full amount?  We all know that collection agencies only pay 10-30% of the original balance for the account, therefore you don' t owe that much money with them anyway.

Thanks for the input.  

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#1   NO    you have a right to dispute any info. that is inaccurate IE: account # amount name  The CRA will contact the OC and make corrections

#2  http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=3866

#3       missed

#4   This is federal law

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=17466

State law  SOL

http://www.bankrate.com/brm/news/cc/20040116b2.asp?caret=8

http://www.fair-debt-collection.com/SOL-by-State.html#7

Baddies stay on CR for 7 years  good TL 10 years (non reporting)

An account can be sold unlimited BUT  CRTP and SOL still apply

Sol MIGHT change if the state goes by DOLA

NO  when disputed online it is multi choice....each CRA has their own....when in writting  just fill it in (name address,phone#, SS#....account # name of creditor  etc..explain what is wrong with it.

#6  not an easy answer......Neg. accounts can be corrected without PIF....If collections I advise them to know their SOL and if not past it be ready to PIF...there are several ways to handle these....DV PFD and GW for paid but not PFD or for late payments.

Scores are made up of many things....neg. accounts collections...NOW if old neg. and you become current or PIF yes it can hurt because it changes the old neg to new date.  Also Length of credit history is important! 

#7  Dealing with a CA..NEVER talk on the phone....everything in writting!!!  Know your SOL first....dispute with CRA (make sure that all info. is correct and DOFD)  DV.....PFD....PIF  only if you must...PFD is always better.

IF you make a settlement with a CO or CA and do not have it in writting they will sell to another CA for the remaining debt.......It will also remain on you CR as settlement for less

A CRA can not and will not delete just because someone ask. They must have proof of why reporting info. is not accurate.  IF you filed BK and accounts are being reported as CO or 120 days late....this is inaccurated reporting...have to send copy of BK with accounts showing that they were included.

Keep in mind that many people have lost jobs or have had serious medical problems that have hurt their CR....Also many have derog. on their accounts that do not belong there.

This forum ALWAYS tells people to clean up their CR before going for another loan.And we only do it legally!

Message Edited by HappyDays on 09-07-2007 05:56 PM

Message Edited by HappyDays on 09-07-2007 05:58 PM

Message Edited by HappyDays on 09-07-2007 06:02 PM

[ucmferguson]

Thanks so much for your input.  It was very helpful.  I feel that I am one of the few people out there that  is trying to help people fix their credit the correct way.  Which is by paying the bills you owe.  I am also considering starting my own credit repair business, but I still have alot to learn.  Can you recommend any books that tell you all about credit, included samples of form letters, and tell you how the scoring system works? 

[sl]

Question,

If you don't believe in Credit Repair Businesses, why would you want to open one?

Just curious.

Sadie

[Anonymous]

Ya know, I was thinking about the same thing....I'm disabled, and just feeling the happiness of the success I"m having with my goodwill letters had me thinking about being able to help others (and make money doing this).  I think the credit repair "business" can be viable, IF you truly tell people what you're doing.  Writing letters for them.  There are some people who just don't want to take (or just don't have the) time to write these letters that can end up being so powerful and successful.

If I saw a sign that said, "Letter Writing For Pay - I'll Write What You Dont' Want To Write", to me, THAT would be a reputable credit HELPING business.  They're not repairing anything, just using legal tactics to get inaccurate information removed.  Or relying on goodwill to get the information removed.  Just be honest with people and I think it can work.

[Anonymous]

Credit repair IF DONE RIGHT is very hard and can be personal. When starting a busness is not easy and this one would require more then 1 person. There are state and federal laws that need to be followed.

Everything that I have learned has come from MYFICO.COM.  and I only know the basic. I have advised friends and family to come in here. I am going on vacation for a few months.......some vacation ...I will be correcting my son & his wife's credit......thats as far as I will go.

If not for this site I would not know where to start. There is always something new to learn with rebuilding or correcting credit.

In my opinion, you would need to work under a consumer attorney in order to make a credit repair busness work, and even then it would not be easy.

There is so much to learn that I will be here forever