topic Re: Disputing reports in Rebuilding Your Credit

Disputing reports

Anonymous — Wed, 04 Apr 2012 14:58:29 GMT

Hi,i'm new at this,but i'm finding all kind of info on what happen when you dispute an item in your report,if you dispute something and it comes out that indeed is yours,will that affect your credit? And or will it reset the time on the report? Thanks in advance for any input.

Re: Disputing reports

llecs — Wed, 04 Apr 2012 16:02:17 GMT

What a dispute can do to your credit status, your credit report and/or score:

1) Disputing will wake up that sleeping OC/CA and can result in increased collection activity on unpaid debts, including an elevated risk of being sued.

2) Disputing makes it harder to remove that baddie through conventional means like a GW or PFD.

3) Disputing can result in additional lates being reported, when none were reported before. OCs typically review the entire file and mark you late, when they failed to report a late payment before.

4) Disputing can result in a "frivolous disputer" claim by the CRA when you try to remove non-legit info the second time around, making it difficult to dispute again.

5) Disputing a TL can get it deleted. That's fine for a serious baddie, but if a TL is reporting only a couple of lates, then you can irrepairably harm your CR and your FICO score.

6) Disputing can drop your FICO score. Certain aspects of an OC are removed from FICO scoring during a dispute and your score can drop.

7) Disputing can lead to a fraud alert.

8) Disputing can lead to a split file.

What a dispute CANNOT do to your to your credit status, your credit report and/or score:

1) A dispute cannot result in the reporting time period of a TL (the CRTP) being extended beyond the original drop off assuming the DOFD reported correctly in the first place.

2) A dispute cannot extend the legal statute of limitations (unless you do something like admit to the debt in the dispute).

3) A dispute doesn't make you any more or any less liable for the debt, even if verified or deleted (assuming it was yours).

4) A dispute won't impact your FICO scores with regards to CAs, PRs, inquiries, addresses, names, or other demographic info.

Re: Disputing reports

Anonymous — Wed, 04 Apr 2012 16:40:50 GMT

@llecs wrote:
What a dispute can do to your credit status, your credit report and/or score:

1) Disputing will wake up that sleeping OC/CA and can result in increased collection activity on unpaid debts, including an elevated risk of being sued.

2) Disputing makes it harder to remove that baddie through conventional means like a GW or PFD.

3) Disputing can result in additional lates being reported, when none were reported before. OCs typically review the entire file and mark you late, when they failed to report a late payment before.

4) Disputing can result in a "frivolous disputer" claim by the CRA when you try to remove non-legit info the second time around, making it difficult to dispute again.

5) Disputing a TL can get it deleted. That's fine for a serious baddie, but if a TL is reporting only a couple of lates, then you can irrepairably harm your CR and your FICO score.

6) Disputing can drop your FICO score. Certain aspects of an OC are removed from FICO scoring during a dispute and your score can drop.

7) Disputing can lead to a fraud alert.

8) Disputing can lead to a split file.

What a dispute CANNOT do to your to your credit status, your credit report and/or score:

1) A dispute cannot result in the reporting time period of a TL (the CRTP) being extended beyond the original drop off assuming the DOFD reported correctly in the first place.

2) A dispute cannot extend the legal statute of limitations (unless you do something like admit to the debt in the dispute).

3) A dispute doesn't make you any more or any less liable for the debt, even if verified or deleted (assuming it was yours).

4) A dispute won't impact your FICO scores with regards to CAs, PRs, inquiries, addresses, names, or other demographic info.

So basically i shouldn't dispute?

Re: Disputing reports

cwwatts1202 — Wed, 04 Apr 2012 16:48:51 GMT

I disputed some things back in Oct. 2011, and had almost everything I disputed removed. Bumped my score up 30 points. All of my accounts were old though, like 5+ years. Don't know if that makes a difference. A couple of them were medical bills, a directv acct that belonged to my dad (we have the same first and last name) and I think that's it..there were like 3-4 medical bills and the directv acct I had deleted. The things that I disputed that werent removed, I haven't heard anything from those CA's yet.

Re: Disputing reports

llecs — Wed, 04 Apr 2012 17:06:14 GMT

@Anonymous wrote:

So basically i shouldn't dispute?

Only dispute if something is inaccurate or isn't yours. And, IMO, even if inaccurate or not yours, reserve the dispute process for last. Try other means first like writing the creditor, showing them a police report (in cases of items not yours), showing proof of a payment history to point out late misplacement, etc. A dispute is typically a one-shot deal and if verified, it makes it much more difficult to remove.

Re: Disputing reports

Anonymous — Wed, 04 Apr 2012 18:45:46 GMT

Thank you for all the replies,the thing is that I'm afraid,cause there's something there that I don't recognize,but I'm afraid to dispute now,cause I don't remember nor I recognize the company,it's just some initials and I have google it and can't find nothing related to that creditor.

Re: Disputing reports

llecs — Wed, 04 Apr 2012 22:36:04 GMT

If they are a CA, then send a DV. If an OC, then call them and ask for the last couple of statements.

Re: Disputing reports

RobertEG — Wed, 04 Apr 2012 22:45:39 GMT

An excellent summary of the pros and cons of disputing.

I would add, in passing, one additional consideration. The new direct dispute rules permit any direct dispute to be dismissed without investigation as "frivolous or irrelevant" if it was previously disputed, including a dispute through a CRA. Shooting out a CRA dispute that is verified may close the door on your subsequent use of the more powerful direct dispute process. They can refuse to investigate it.