Questions regarding erroneous and erratic reporting across the 3 CRA's

[Anonymous]

Hi Everyone,

I am a month on in my credit rebuild and found errors across my three CRA files. The mistakes are obvious and can be found in the reporting of 2 CO's and a foreclosure.

The most serious of the errors involve the reporting of our foreclosure from 2 years ago. The date of last activity is listed as 9/17 with one CRA and 8/18 on another. Also, the 30, 60 and 90 day lates do not match from one agency to another - pretty sloppy stuff given the lender is NFCU!

The foreclosure documents are riddled with errors, the largest of which is that the foreclosure mill attorney NFCU trusted with our file signed off on an affidavit of service saying all of the papers were in order and that I had been appropriately served, whereas the next document in the stack clearly shows the sheriff checking the box stating I was not home. Given that NFCU can't alter a completed foreclosure document, can I demand they remove the tradeline due to the errors the document reflects?

The two CO's involve erratic reporting of lates - side by side, the CRA reporting looks haphazard.

I disputed these three tradelines via Credit Karma and all came back verified within 48 hours. 

If anyone has advice on how to deal with these incorrectly reported tradelines I'd be seriously grateful. My concern is in showing my cards to the CRA's and having the lender simply correct the discrepencies. I feel a delete of the tradelines is warranted - especially given that the shoddy reporting actually led to an amazing six figure job offer being rescinded due to a low credit score.

Thanks in advance for any guidance on this matter!

[OmarGB9]

I'm truly sorry about the job offer being rescinded, but by law, lenders *are* allowed to correct any issues upon a dispute being filed as opposed to simply deleting the entire TL. But I don't know all the ins and outs of that. I will page @RobertEG for more information. Hopefully you can get it all sorted out and perhaps get back that job offer.

[Anonymous]

Thanks for responding, Omar. 

The trade lines are sloppily reported with several mistakes and I don't feel like doing the work for the OC or the CRA. 

I suppose a straightforward certified letter asking for each CRA to validate might be the best approach.

[RobertEG]

The goal of the dispute process under the FCRA is to provide consumers the ability to inform furnishers (creditors and debt collectors) of reporting inaccuracies, and get any incomplete or inaccurate reporting corrected or removed.  The goal is not to "penalize" furnishers for reported inaccuracies by mandating deletion of any reporting found to be inaccurate.

To that end, FCRA 623(b)(1)(E) requires the furnisher to investigate and make a finding either that the reporting is found to be accurate, correct any finding of inaccuracy, or, if neither can be done, delete the unverified information.  It then requires the CRA to make their own finding that the disputed information is either verified, corrected, or if neither can be done, deleted.  FCRA 61(a)(5)(A)(i).

Deletion is thus only required if the disputed information cannot be verified or corrected, and even then, deletion applies ONLY to the information under dispute, and not to other information or to the entire account.

Additionally, the FCRA founding fathers were concerned that if furnishers were subjected to any liability for inaccurate or incomplete information, that would act as disincentive to making voluntary reporting of accounts to the CRAs, leading to incomplete credit histories.

They included provisions that consumers cannot file their own civil actions seeking liability of furnishers for any inaccurate or incomplete reporting.  Rather,they must first file a dispute with the CRA requesting investigation of the inaccuracy.  If the furnisher then verified the accuracy of their reporting, the consumer then obtained the right to civil action seeking liability for an unreasonable investigation and verification.  See FCRA 623(c).

As a result, initial reporting is often a bit sloppy and/or inconsistent with different CRAs, with the knowledge that they always have the opportunity to review and correct before becoming liable for reporting inaccuracies or incompleteness.

Since the posted scenario states that a dispute was filed and accuracy was verified, the consumer now has the right to file a civil action seeking corrrection and award of damages.  There is no formal appeal process within the FCRA for admin reconsideration of a prior dispute, and the consumer, if they disagree, can pursue the matter by either informal contact with the furnisher, admin review by filing a complaint with the CFPB, or filing their own civil action seeking correction and award of damages for the unreasonable investigation of their prior dispute.

[Michizane]

Not sure if you have resolved this yet, but it is quite common for entries between the different CRA's to look different. It is hard to give a definitive answer without seeing all the actual details. But based on what you're saying, it sounds like you had a foreclosure due to non-payment and you had other charge offs as well. For the foreclosure, it sounds like your issue is with the paperwork of it (and how it was executed) and how the CRA's are reporting. If you didn't make the payment and lead up to a foreclosure, then you pretty much stuck with that on your credit report. Depending on whether you still owe money on the foreclosure, the bank/lender might report your last activity differently. For example, if they sold your home and you owe a balance they can choose to report your balance every month until your settle it. If they sell it to a collection agency, then they will stop reporting on it. Transunion usually stops reporting after the account is written off/charged off, but Equifax and Experian might continue posting activity every month until you settle it. The same goes for your other charge off's, the CRA might report a last activity date after it is charged off and one might report the last activity date when it is settled...and both can be correct according to each CRA.

For example, I had a CC charge off that was closed in March 2019, Charged off on June 2019 and settled on October 2019. TU reports last activity on 03/2019, Equifax in 06/2019, and Experian said 10/2019 for last activity. And EQ and EX verified the account as accurate. 

The way you are explaining the foreclosure sounds like a technicality, but if you didn't make the payment then you are pretty much stuck with it on you credit report...unless they give you a goodwill remove/adjustment. But if they actually did something illegal, you could try suing them and settle on the foreclosure and maybe have them remove it from your credit report in the process. Good luck...