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Clearing Your Credit - Feeling Frustrated?
Author : Jerimiah Zanderbreck
Submitted : 2011-12-27 18:03:08 Word Count : 525 Popularity: 1
Tags: clearing your credit, clearing credit, clearing your credit report, clearing your credit history, clearing my credit report
It is very common to become frustrated when trying to clear your credit report. The unfortunate truth is the credit bureaus want you to feel like it is impossible and give up on removing inaccurate credit items from your report.
The Dispute Process
When you file a credit dispute you are telling the bureaus you challenge and have an inaccurate item on your report. You can file a dispute for any number of reasons including: not my account, wrong dates, incorrect balance, it is an error… You can do this by either writing a letter yourself or hiring a credit service to do it for you.
This letter is going to be sent to all 3 bureaus and when they receive it they will immediately send out a letter in response asking for more information. This is simply a stall tactic and will be done regardless of the credit bureaus need for any additional information. In 1970 Congress passed the Fair Credit Reporting Act, this law required the bureaus to investigate consumer disputes. However due to what we believe is aggressive lobbying by the 3 credit bureaus, Congress has decided that the bureaus must deem a dispute valid before they investigate it.
This is the most irrational and illogical decision ever! When the credit bureaus investigative disputes they are only spending money, there are no profits to be earned when they correct inaccurate information. The time and money the bureaus spend investigating and correcting any inaccurate information they have about you is only a cost of operation, and is done only to comply with federal regulation. In other words there is no profit motive for the bureaus.
The credit bureaus are some of the biggest businesses in America, there is a common misconception that they are somehow associated or run by the government, which is entirely untrue. The credit bureaus earn profits just like: Walmart, Target, Best Buy, your local gas station…
Except the credit bureaus earn much more income as they report billions of dollars of sales every single year! The bureaus earn their money by collecting information about you and then selling that to potential lenders or creditors. The FTC has find all 3 credit bureaus over and over and over again for not complying with the Fair Credit Reporting Act of 1970.
Despite this Congress has given the power to the bureaus to decide which disputes they will investigate and which ones they will not. In other words Congress gave the bureau's power to throw money out the window or keep it. Under no circumstances should the bureaus had this power because they have a direct financial interest in not investigating disputes.
We are confident the reason that Congress has given the bureaus this right is due to consumer ignorance, unfortunately many consumers have no idea how our credit systems work. Therefore they are unaware and only when they hit the brick walls of dealing with the credit bureaus do they realize. This is why many individuals turn to a professional who has a specialty in consumer credit laws and the power to back it up.
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For more about how to clear you credit visit us you can also learn easy ways to improve your credit.
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