Wednesday, November 9, 2011

The Worthless Online Dispute System

I do not recommend using the online dispute system that Equifax, Experian and Transunion offer because they are pretty much useless in regards to attaining true deletions of negative credit items.

The online dispute system, otherwise known as the "Expedited Dispute Resolution" is outlined in Section 611a(8) of the Fair Credit Reporting Act.

The key phrase to note is:

"the agency shall not be required to comply with paragraphs (2), (6), and (7) with respect to that dispute" if they delete the tradeline within 3 days."

• Paragraph 2 states that it is mandatory for the CRA to forward your dispute and all of the associated records you present to the creditor.

• Paragraph 6 states that the CRA must supply you with written proof and results of the dispute process.

• Paragraph 7 states that the CRA must supply you with the process of verification on demand from the person making the dispute.

The problem is that the law isn't detailed enough to say permanently delete or suppress the derogatory item.

The CRA can perform a "soft delete" for about a month and then the derogatory item can recur when the creditor reports it again in the subsequent 30 day cycle. This is because the CRA's aren't obliged to tell the creditor you disputed it at all!

This compounds their defense strategy of attrition and delay by allowing the consumer to think they are getting a permanent deletion, but it is only temporary solution. Since the creditor never knew it was removed, they will report it again and the CRA will put it right back on your report. Moreover, you have no proof the investigation or the supposed results ever took place that you would have received if the dispute was done by mail by a reputable credit repair company like Credit Restoration Associates.

See Below for the specific wording from the Fair Credit Reporting Act.

(8) Expedited dispute resolution. If a dispute regarding an item of information in a consumer's file at a consumer reporting agency is resolved in accordance with paragraph (5)(A) by the deletion of the disputed information by not later than 3 business days after the date on which the agency receives notice of the dispute from the consumer in accordance with paragraph (1)(A), then the agency shall not be required to comply with paragraphs (2), (6), and (7) with respect to that dispute if the agency

(A) provides prompt notice of the deletion to the consumer by telephone;

(B) includes in that notice, or in a written notice that accompanies a confirmation and consumer report provided in accordance with subparagraph (C), a statement of the consumer's right to request under subsection (d) that the agency furnish notifications under that subsection; and

(C) provides written confirmation of the deletion and a copy of a consumer report on the consumer that is based on the consumer's file after the deletion, not later than 5 business days after making the deletion.

(b) Statement of dispute. If the reinvestigation does not resolve the dispute, the consumer may file a brief statement setting forth the nature of the dispute. The consumer reporting agency may limit such statements to not more than one hundred words if it provides the consumer with assistance in writing a clear summary of the dispute.

(c) Notification of consumer dispute in subsequent consumer reports. Whenever a statement of a dispute is filed, unless there is reasonable grounds to believe that it is frivolous or irrelevant, the consumer reporting agency shall, in any subsequent report containing the information in question, clearly note that it is disputed by the consumer and provide either the consumer's statement or a clear and accurate codification or summary thereof.

(d) Notification of deletion of disputed information. Following any deletion of information which is found to be inaccurate or whose accuracy can no longer be verified or any notation as to disputed information, the consumer reporting agency shall, at the request of the consumer, furnish notification that the item has been deleted or the statement, codification or summary pursuant to subsection (b) or (c) of this section to any person specifically designated by the consumer who has within two years prior thereto received a consumer report for employment purposes, or within six months prior thereto received a consumer report for any other purpose, which contained the deleted or disputed information.

Call Credit Restoration Associates toll-free: 1(800) 648-5157 to have the professionals attain permanent deletion of inaccurate, obsolete or un-verifiable negative items from your credit reports.

NEXT POST: The Girl Scouts add Good Credit Merit Badge!

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