Credit Bureaus to Forward Dispute Documents to Creditors

Reporter Kelly Dilworth of CreditCards.com has posted an excellent report on a new development in the credit dispute process. For the first time, beginning later this year, TransUnion, Experian and Equifax will begin scanning every document that you mail in, including the full text of your dispute letter, and electronically transmit the documents to lenders and other data furnishers. Heretofore, all the credit bureaus sent to the creditors was a two or three digit code and a few comments. For example, if a consumer states the account does not belong to him or her, the dispute would be reduced to...

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The Pros and Cons of Settling Your Debts

This is a guest post from John Ulzheimer, a credit expert and senior columnist for Credit Card Insider on the pros and cons of settling debts that appear on consumers’ credit reports. Over the past four years we’ve unfortunately had to become familiar with the term, “short sale,” which is actually a settlement accepted by your mortgage lender. And while mortgage settlements have become a common practice over the past few years, the process of settling other debts, such as credit card debt and debts being worked by collection agencies is a much more established process. Debt settlement works like...

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Credit Reports Tag Consumers as Terrorists or Drug Dealers

Reports by Trans Union to creditors sometimes mistakenly tag law-abiding consumers as terrorists or drug dealers. The reports are not the normal credit reports consumers and lenders obtain on consumers. The reports are special reports Trans Union sells to lenders as method to screen consumers so the lenders are in compliance with the USA Patriot Act regulations. Attorney Andrew Ogilvie of this firm and co-counsel at Francis & Mailman, a Philadelphia law firm, have filed a class action in the federal district court in San Francisco alleging that Trans Union’s practices are in violation of the Fair Credit Reporting Act...

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Credit Scores Used by Consumers and Lenders Vary

On Sept 25, 2012, the Consumer Financial Protection Bureau released a study comparing credit scores sold to creditors and those sold to consumers. The Bureau found that 20% of consumers receive a score significantly different than the score send to the lender. The Bureau analyzed 200,000 credit files from Experian, Equifax and Trans Union. The report concludes that the credit score discrepancies harm consumers. Consumers, relying on the credit score they receive, may apply for credit and not get it or they may pay more for a loan that they should based on the score they received. There is no...

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Different Credit Scores Confuse Consumers

FICO is the company that developed the credit scoring system is being used by creditors to make decisions on extending credit. FICO may have had just one score per consumer at one time, but now FICO itself has many different scores. In fact, as reported in the NY Times, a writer with Creditsesame.com counts 49 different versions of your credit score under the FICO umbrella. Why so many? FICO uses credit data collected by the three major credit bureaus (Equifax, Experian and TransUnion) to create a single, three-digit score. FICO has three versions of the basic score, using data from...

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