In my opinion, one should almost always use the direct dispute process for the following reasons:
1. It avoids the CRA sanitation of your dispute by their use of their e-OSCAR process, where your dispute is reduced to a code and forwarded to the furnisher, almost always without your supporting documentation. It ensures all documentation is received by the furnisher.
2. It eliminates the back-and-forth between the CRA and the furnisher. No time wait by the CRA for initial processing of your dispute, and the five-days they have to forward to the furnisher, and the time delay in communication back to the CRA with their results.
3. It avoids CRA meddling in the final disposition by eliminating their "reinvestigation" procedure.
4. It imposes a statutory requirement that the furnisher respond directly to the consumer. While disputes through a CRA technically require the furnisher to respond back to a CRA, some dont, and if they dont, the CRA must still conclude the dispute without receipt of any verification from the furnisher.
5. It may result in no dispute flag being placed in the consumer file. CRA disputes make that automatic. Direct disputes only receive notice of the dispute if separately informed by the furnisher.
6. One dispute can cover all three CRAs. If the information must be corrrected or deleted as a result of the dispute, the furnisher is required to report the results to all CRAs to which they have reported the information.
There are three situations where a dispute through the CRA would either be more appropriate, or is the only way to dispute:
1. If the consumer does not have the address of the furnisher, or know who furnished the information
2. If the dispute relates to an inquiry or public record. Disputes pertaining to inquiries and PRs are specifically exempt from the direct dispute process.
3. If the dispute is being made with the assistance of a credit repair organization. Credit repair organizations are specifically excluded from even assisting in the preparation of a direct dispute, even to the extent of providing forms for use by the consumer.
Additionally, contrary to what I have seen posted on other sites, one should not first dispute through a CRA prior to sending a direct dispute.
If a furnisher has investigated a dispute filed through a CRA, they can dismiss any subsequent direct dispute on substantially the same issue without any need for investigation as being "frivolous or irrelevant." One issue, one investigation by the furnisher.
