topic Re: Disputes with CRAs in Rebuilding Your Credit

Disputes with CRAs

MBOhio2 — Thu, 10 Mar 2011 20:37:13 GMT

I always see people here advise NOT to dispute matters directly with the CRAs. Can someone please explain the reasoning for this advice so I can better understand? Also, usually the advice is accompanied by mention of the automated system the CRAs use... therefore, would it be better to dispute with the CRAs in writting via a letter?

Thanks!

Re: Disputes with CRAs

Anonymous — Thu, 10 Mar 2011 20:59:04 GMT

It's best to dispute with the creditor, rather than the CRA, because the CRA typically doesn't do a lot of investigating. They check an automated system called E-Oscar and if it says the reporting is accurate, that's good enough for them. (On average, that is). Then your tradelines get marked as being disputed and an underwriter freaks out and you have to worry about that.

What is it that you want to dispute?

Re: Disputes with CRAs

MBOhio2 — Thu, 10 Mar 2011 21:05:05 GMT

Here's the gist... my husband has one of those really fun library collections for $20. I paid the fee to the library yesterday and begged them to ask the CA to delete the collection account from my husband's credit report. They library guy said they can't do that but then said "off the record", the library does not keep any record of paid /debt fines so once it's paid, the entire record dissapears. Therefore, he said that if I wait 1-2 weeks for the payment to process and be deleted from the library's system, then I dispute through the CRA, there will be no way to verify the debt and the collection will be deleted.

First of all, I recognize this isn't the epitome of shining ethics, but this silly thing is keeping my husband's credit score way down because it's the ONLY thing on his otherwise perfect credit report. We're trying to buy a house next year and this $20 collection seems like a pretty stupid thing to hurt our chances.

Thoughts?

Re: Disputes with CRAs

Anonymous — Thu, 10 Mar 2011 21:21:26 GMT

It's actually a reasonably common practice for some places to suggest that - there are places that will no longer verify a collection after it's paid. In this case, it's probably not a bad thing to try, although I'd probably give them a little more time just to be safe.

One of the "DO NOT DISPUTE" reasons is that a lot of people will frivolously dispute and suffer consequences. CRAs can label you as a frivolous disputer and be more resistant to investigating any new disputes. You can get "disputed by consumer" which can prevent you from getting loans if you're unable to remove it. Another reason that it's discouraged is because it's against the ToS - when you dispute, you have to give a reason from their pre-selected options (if you do it online) and if you're lying about the reason, it's unethical. Encouraging that kind of behavior hurts all of us and it violates the terms of this site.

I personally, if I'm sending something to the CRAs, I will not lie, but I may not give them all of the information - I objected to a judgment on the basis that I have "no such judgment with the court listed". I did have a judgment with that ID, but the court was listed incorrectly. I really didn't have a judgment with the court in question - no need to point out that I had one with a different court not listed.

Re: Disputes with CRAs

MBOhio2 — Thu, 10 Mar 2011 21:34:10 GMT

So when you've disputed something with the CRAs, have you simply done so through the online dispute or did you send a letter?

Re: Disputes with CRAs

MBOhio2 — Thu, 10 Mar 2011 21:36:42 GMT

And I think you're right about the timing... as bad as I want to dispute it immediately, I think it's safer to wait, maybe even 6 weeks or so to make sure all of the dust has settled.

Re: Disputes with CRAs

Anonymous — Thu, 10 Mar 2011 21:45:17 GMT

I have sent hard-copy letters, CMRRR. I want to have the flexibility to say exactly what I want and to not be restricted by the options in the electronic dispute.

I have made an exception - I did dispute incorrect addresses, names, phone numbers online. They then made me do it on the phone through an automated system. I'm still waiting for EX to tell me if they believe that my incorrect name is really my name or not.

Re: Disputes with CRAs

MBOhio2 — Thu, 10 Mar 2011 22:01:11 GMT

Any special format or language or just "hey, I dispute this" in plain English

Re: Disputes with CRAs

Anonymous — Thu, 10 Mar 2011 22:06:05 GMT

They're all very carefully tailored to the specific situation. At the high end (word count) was the pre-hipaa letters and at the low end was "I have no such judgment with this court, please share your method of verification" or something like that.