Types of FCRA Errors
Do you think or believe that the bureaus on your side? Do you assume that the information that bureaus and other organizations will be accurate or even truthful? Do you believe that these information companies, yes I said companies (they aren’t the government, but they do operate under their graces for profit reasons) have your best interest at heart? If you do, you are sadly mistaken and in for a rude awakening the next time you check your credit report if you haven’t yet. Perhaps you haven’t noticed any errors because you do not understand what you are looking at or what it means. This is not mistake, it is confusing for a reason and we are not given an education on credit for the very reason that the less information you know about how to obtain good credit, the better off the bureaus and creditors are profit wise.
How is that?
It is all simple statistics. The more information they have about you, correct or incorrect helps to develop your credit history. That history is then placed into a numerical formula. That formula determines your credit worthiness. If your history is solid enough to obtain credit, it can be beneficial to both the creditor and you. You both get what you want and call it a win, but what if you could get a better interest rate or payment? What if you could actually be spending much less money, but because of errors or erroneous accounts reported on your credit report, you are paying thousands more than the next guy? That is what happens when we do not keep the bureaus in check by disputing our credit reports. They aim to keep us in “sub-prime” credit or lending category, in order that they may profit off of your individual account more. You are a number to these guys (a Social Sec. # to be exact) and you means profit to them. They make billions a year off information, but yet can’t even keep that protected!
In a recent CNBC article, I found the following statements:
Around this time two years ago “The Equifax data breach exposed the personal information — home addresses, Social Security numbers, etc. — of 143 million consumers.” According to CNBC
“the astounding number of errors in the credit reports that are the result of misaligned economic and legal incentives”
“More than one in five consumers have a "potentially material error" in their credit file that makes them look riskier than they are. Lenders respond to this incorrect data by offering you higher interest rates, less favorable terms, or denying credit if the error makes you look too risky.”
“Given the importance of credit scores, why are they so inaccurate? Three reasons: size, speed, and economic incentives of the system. Each of the major bureaus has over 200 million credit files that, on average, contain 13 past and current credit obligations, resulting in 2.6 billion pieces of data. Each month, more than 1 billion pieces of data are updated, requiring a speedy system. With so much data coming from so many sources, so quickly, errors are inevitable (especially if you have a common name).”
“Half or more of medical bills have a billing error”
“40 million consumers obtain at least one credit report annually, although not always for free.”
“When they get their report and see errors, consumers act. Eight million times a year, consumers contacted one of the big three credit reporting agencies to dispute information. Yet the dispute system is not designed to get to fix the problem. The credit bureau is only legally required to check with the creditor or debt collector and ask them whether they stand by their claim. As long as the creditor says you owe money, the dispute is resolved in their favor. As the National Consumer Law Center concludes: "Credit bureaus have little economic incentive to conduct proper disputes or improve their investigations."
3rd Party Collections:
I have no idea where this came from!
How can there be late payments on a collection?
I need to see proof that this account is mine.
I was never late paying on this account please correct this to show paid as agreed.
Send me the documents proving I was late
How do you show 90 days late for a payment when its never been late before?
Identity Theft (never use unless you have suffered id theft):
Does not belong to me
I need to see paperwork with signatures verifying this account
Debt Buyer Collection
I have no idea where this came from
Wrong creditor or balance
This has already been paid!
Why does this account show a past due balance?
This account shows a wrong date of last payment
How is a monthly payment reported for this account
Certain paperwork has to be sent to me before a vehicle can be repossessed and reported on a credit report, I did not receive that paperwork and now I am seeing this account on my report like this, please delete!
Charged Off Accounts:
How can this account show no balance when it doesn’t say paid or sold/transferred?
This balance is wrong
I never had any property financed with this company
The date filed is wrong under this public record bankruptcy
The court name is not listed correctly, it has to be listed in the correct format, please delete this record.
Many of these violations and errors can also be used for other types of accounts as you see some are listed multiple times. The reason you use to dispute is always based on your individual credit report and that will vary from one report to the next. Not everyone has the same errors just or accounts, so it is always a case by case basis.
As always, we are here to support you in prayer and advising on where to turn next. If you have questions, concerns, or need help with the next step become a partner with us today and we will assist you with everything you need to help get to the next level.
If you would like our help and partnership, or to do the work for you, visit our credit restoration page https://www.salvationscall.org/creditrestoration.html
CNBC. (2017). Personal Finance. “The Real Problem With Credit Reports Is The Astounding Number of Errors.” Retrieved from https://www.cnbc.com/2017/09/27/the-real-problem-with-credit-reports-is-the-astounding-number-of-errors-equifax-commentary.html
Federal Trade Commission and FCRA Download:
There are no attorneys on staff here at this ministry. No advice or laws stated on our site should be used to replace sound legal advice. If you have legal questions or are in need of legal consultation, please seek your attorney. God Bless!