Tips For Disputing Incorrect Credit Card Information
If you have had errors showing on your credit report or credit reports you are not alone. In fact 10 million Americans every year report that they find errors on one or more of their 3 major credit reports. The FTC or Federal Trade Commission has reported that upwards of 25 percent of all credit reports have errors on them which effect consumers credit scores. It is no secret that disputing this erroneous information with the credit reporting agencies is often a nightmare when trying to correct the information. Many of these errors have caused millions of Americans to be unfairly denied credit or receiving interest rates much higher than they normally would be due to the false information.
The process to correct such erroneous information has in the past been so burdensome and fraught with red tape that upwards up one forth of all consumers attempting to fight the erroneous information simply give up. The 3 major credit reporting agencies Experian, TransUnion and Equifax dispute process is set up to be a nightmare to wade through the process, with everything stacked on the creditors side. These errors have cost consumers more than just credit, even jobs have been effected as today more than ever employers are using credit reports to gauge what type of person they are considering to employ.
Life for all of us with erroneous information appearing on our credit reports is however about to get much easier int he coming years thanks to the New York state Attorney General Eric Schneiderman. New York Attorney General Eric Schneiderman was forced to file a class action suit against all 3 major credit reporting agencies; Experian, TransUnion and Equifax due to an investigation on behalf of New York citizens who had complained about credit reporting errors and the nightmare dispute process that they had to wade through. In a surprise twist of events a settlement was reached on March 9, 2016 in which many reforms to the dispute process were announced. The great news is that this settlement does not effect only New Yorkers, but the entire country. The bad news is that these reforms will take about 3 years to completely roll out since it pretty much is an extensive overhaul of the system, a broken system at that.
Among the reforms is one key reform, the credit reporting agencies are now required to hire employees whose sole function is to investigate disputes and review all supporting documentation submitted by consumers are reporting errors in their files. These reviewers are to be specially trained and educated. Prior to this the credit reporting agencies simply asked the creditors and then rubber stamped claims, without actually investigating issues. Credit reporting agencies will no longer accept tickets and fines to credit reports nor any debt that was not the result of a contractual obligation. Debts that do no include a consumers date of birth will no longer be accepted either, which will cut down a lot of errors with common names such as John Smith.
Other reforms include medical debt reporting. Medical debts are unexpected in most cases and medical billing is often a nightmare disputing with the provider who may have bill your insurance wrong. So now medical debt will not be reported until 6 months or 180 days have passed. This gives ample time for insurance to be billed correctly and give the consumer time to pay the out of pocket costs before the debt is reported and harms ones credit score.
These changes have been being pushed for years by advocates and consumer watch dog groups. Thanks to the New York attorney general these changes are now upon us.