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Why are credit reporting errors so hard to fix?

5623004_s-300x200Credit reporting is pretty messed up.  People not only have errors on their credit report, they also have a very hard time fixing them.

So who is responsible?  The credit bureaus and the companies reporting information to the credit bureaus should ensure that the information is accurate.  The FTC oversees the credit reporting industry, and your state’s Attorney General can enforce the provisions of the Fair Credit Reporting Act.  But where does that leave you when your credit report is wrong?

You can dispute incorrect information on your credit report with the credit bureaus online or by mailing a written dispute via certified mail.  However, the credit bureaus don’t investigate whether the information is wrong- they merely inform the company reporting information that you are disputing the account.

The company then conducts an “investigation” and reports its findings to the credit bureaus.  The company can verify, amend or, in limited circumstances, delete the account.

Sounds great right?  It’s not.  The process is completely automated, and worse, most people don’t know how to conduct an effective dispute.

First, you must know what the error is.  Disputes require “specificity.”  This means you need to know exactly what’s wrong.  Is it the payment history?  Is it the balance? Is the account not yours?  Unless you can articulate the problem, you won’t be able to fix it.

Second, and most importantly, you must know the “why.” If you don’t know why your credit is bad or not so great, then you should not dispute at all.

For example, let’s say you have a bunch of collection accounts.  If you dispute them in hopes they will be deleted, then you shouldn’t hold your breath.  The proverbial game has changed friends, and the quick dispute and delete is no longer effective.  Instead, debt collectors will pursue you more heavily and even file suit against you, or just sell the account to another debt collector who will start reporting it.  So now, not only do you have bad credit, but you have debt collectors calling, writing, and knocking on your door.  This happens when you don’t deal with the “why.”  This is also why most credit repair companies suck- they don’t deal with the “why” either.

So in this case, “why” do you have bad credit? Because you have too much old or delinquent debt.  So to get better credit you need to resolve your debt problems. Unfortunately, how you do this can be difficult.  Do you know if you owe the debt? Do you need debt settlement? Debt consolidation?  Bankruptcy?  It’s not enough to just dispute.  You must fix the underlying problem too and know “how” to do that.

We help you because we can determine the “what,” the “why,” and the “how.” This is what we do, how we are so effective, and why we are awesome. Bonus, in most cases, we can help you faster and for less money than any other company, and we are a law firm so we can represent you from start to finish.  So, if you want to get back on track and improve your debt and credit issues schedule a FREE consultation today! (480) 907-6088.  AZ Credit Law Group, PLLC – Aggressive Advocacy with Integrity.

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One Response so far.

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