Dealing With the Credit Bureaus

It is helpful as you start the credit repair process to have some insight into the credit bureaus. They are not the enemy, nor are they an impediment to your effort, but they must be understood if you want to avoid frustration.

A Reasonable Degree

The credit bureaus are required by the Fair Credit Reporting Act (FCRA) to process credit repair disputes. But the FCRA does not insist on perfection. The law is not intended to enforce accuracy. A close examination of the Act and all relevant FTC Staff Opinion Letters will reveal that the credit bureaus are expected to comply with the laws to a “reasonable” degree. Reasonable in this case means that the laws are not meant to threaten the economic viability of the credit bureaus.

Processing Disputes

As a result, the credit bureaus have set up processes for dealing with disputes which are efficient in a way, but inevitably prone to errors. In the interest of economy, the credit bureaus have moved their dispute processing centers offshore. They have also streamlined the system used to interpret and communicate dispute specifics to the data furnishers. The dispute staff is trained to examine your letter in a matter of seconds, determine the basic gist of your dispute, convert it into a two digit code, and submit it to the furnisher via e-Oscar, the web-based software designed to handle the flow of disputes electronically.

A High Error Factor

This sounds fine, and it is! But the sheer volume of credit repair disputes processed combined with the reality that the entire processing system was created only to comply with the FCRA (after all, the credit bureaus are not in the dispute processing business) means that a significant percentage of disputes will be handled in a less than adequate manner.

Stick With It!

But not to worry! Credit repair requires patience. If your disputes do not produce the desired result just calmly carry on. If an item on your credit report is not accurate you should stand your ground and repeat your dispute until your credit repair effort bears fruit. And it will!