If you dispute via a CRA, it is a two-step process.
The CRA is required to forward a copy of your dispute along with "all relevant information" provided by the consumer to the furnisher of the disputed information.
The furnisher is then required to conduct a "reasonable investigation" and forward their results back to the CRA, who then conducts their own "reinvestigation" of the accuracy.
The CRA must conclude their reinvestigation within 30 days of filing of the dispute (unless the consumer has provided additional info after first filing of their dispute, which would extend the reinvestigation period to 45 days).
The CRA reinvestigation period is fixed, and cannot be extended. The CRA makes the sole and final determination of the outcome of the dispute, but will almost invariably rubber-stamp a verification received by the furnisher, as they usually have no other independent information to contradict the finding of the furnisher.
Technically, the CRA, and not the furnisher, makes any final verification of accuracy.
The CRA must then forward their Notice of Results of Reinvestigation to the consumer within 5 business days after conclusion of their reinvestigation period.
That is the formal document that concludes the dispute.
An online dispute is a special case of a CRA dispute that I do not recommend. The online process restricts the consumer from inclusion of actual supporting documentation, and thus effectively results in the consumer sanitizing their own dispute. Other than the convenience of a quick dispute, it has more disadvantages than advantages.
If you send a dispute directly to the furnisher, which is permitted unless thte dispute relates fo consumer personal identification information, credit inquiries, or public record information, then the CRA is totally out of the process. A direct dispute ensures that all information is received by the furnisher, and cuts out any possible sanitation of the information provvided by the consumer, which is commonly done by a CRA by use of its e-Oscar process to forward any documentation to the furnisher.
The CFPB recently annnounced that it is cracking down on the CRA e-Oscar process by requiring the CRA fo forward all information to the furnisher, but it is yet to be seen how that will actually be complied with by the CRAs. A direct dispute ensures no CRA sanitation.
The funrisher must then send their Notice of Results of Investigation of any direct dispute to the consumer within the same period required of a CRA to complete its reinvestigation, which is normally 30 days from date of filing of the dispute, plus 5 business days thereafter.
If you use a credit repair organiization in preparation or filing of any direct dispute, even so far as to use a form provided by them, the furnisher can dismiss the direct dispute without any need for investigation. CROs are exempted from any participation in the direct dispute process.
Thus, if you wish to take advantage of the direct dispute process, you are wise not to involve a CRO.
