60 Minutes, The Bureaus and "DISPUTES"

Red Phoenix Nation!!! I was alerted to a recent news story that was aired by 60 Minutes about credit. This story exposed a lot of what I often chat about. "DISPUTES" It also created a lot of fear in consumers, mission accomplished from the huge response that was sent to me with questions. First, I want to tackle disputes and what that really means to us, the bureaus and our creditors. "Disputes" when you think of that word what does it mean to you? To me it means I don't agree with someone or something and I want to argue it. If you don't understand the FCRA, FCBA, FDCPA, FACTA, CROA, or SSCRA the main one being the FCRA (Fair Credit Reporting Act) the argument can be difficult. www.ftc.gov has all of them for you should you want to review. Even with an understanding the road is not always easy. When you dispute items and you don't understand what it is you can actually dispute, odds are you won't win. For example; "I paid that collection two years ago, that shouldn't be on there!" In fact, it should still be on there. Negative items, paid or not paid can remain on your credit for up to 7 years. Your 7 years starts 6 months after the date of your first delinquency. Second example, "I didn't agree with that charge, so I didn't pay it. I shouldn't be late!" In fact, if you don't dispute directly with the creditor in writing then don't pay, well then you're late. Simply put, under Fair Credit Billing, if you write in for your dispute that creditor can't report to the bureaus for 90 days or until the investigation is complete. So in short, if you're disputing a charge, pay it and fight for a refund. That is an easier task then getting them to delete the late payment. Let's say you have a documented argument and the bureaus are not moving on it. You are so right and they are not doing a thing and you can't get any resolve. Don't beat your head against a wall, get help sooner rather than later. Talk to a consumer rights attorney or find me. The bureaus right checks everyday over things like this, and I have clients who I've referred to my attorney, sued and won. ****DISCLIAMER**** THAT DOESN'T MEAN EVERY LITTLE WRONG THING IS A POTENTIAL LAW SUIT!!!! On to the next deal and what I call a HUGE MISCONCEPTION AND FEAR THAT WAS STRUCK INTO THE HEARTS OF MILLIONS!!!! You can get items deleted (prior to 7 years) and or corrected. You can't dispute information and hope to have much resolve. The FCRA is a powerful tool if used like it should be, which is to protect us the consumers. There are ways inside the FRCRA to hold the bureaus accountable for how they are reporting information. You have to know what those are, what your asking and have a working knowledge of how the bureaus work and an understanding of the FCRA. Did you notice the 60 Minutes didn't ask specifically how information was disputed? They brushed a broad stroke over that using a guided line of questions all without having some sort of prior knowledge. Google E-Oscar for me, not even sure what that will bring up. I've never looked, but you should find out that its an electronic format in which the bureaus communicate with creditors. Here is another little tid bit that you should be aware of as much as I hate to say it. The bureaus take quite a bit of blame, HOWEVER!!! The bureaus have instructed creditors how to report and how to repsond to investigation or dispute requests. The bureaus can't police how the person on the other end (meaning the creditor) performs those tasks. They have to have some level of trust that the creditor is doing the work and abiding by the FCRA on their end as well. In short, "disputes" rarely work, even though they are encouraged, it is wrong to dispute. There are other methods that are effective and work. Persitance, patience and knowledge are the key. I really could go on and on and on, however this is just a short little blog to give some answers about the story on 60 Minutes. This is my everyday fight for my clients, I live it, breath it and I'll never stop fighting. You've heard the term money never sleeps? Neither does credit, and I rarely do. If you need me, I'm always around... www.redphoenixco.com john@redphoenixco.com ps. spell check is not working, sorry for any errors....