e-OSCAR Automated Credit Dispute Verifications
e-OSCAR Automated Credit Dispute Verifications Wizard of Oz
e-OSCAR Automated Credit Dispute Verifications (Online Solution for Complete and Accurate Reporting) is a system used by creditors and Credit Reporting Agencies as a short cut to truly fulfilling their legal responsibility to thoroughly investigate consumer’s disputes of negative credit report entries. This system essentially makes a mockery of the whole process. The Federal Credit Reform Act (FCRA) requires that the furnisher of the negative information must perform a “reasonable investigation.” The furnisher is supposed to investigate and correct any inaccuracies.What really happens has no relation to what should happen according to law. It is as in the land of Oz with the Wizard behind the curtains pulling the levers in “The Wizard of Oz.”
Your Carefully Crafted Dispute Letter is Tossed into a Blender
An alleged creditor has filed an outrageous negative entry in your credit report that has crippled your credit score. You simply do not owe what is claimed. The credit reporting system in all its arrogance has taken the word of the creditor. The burden is on you to prove your innocence instead of the burden being on the creditor to prove his claim. You are rightly outraged. Your mortgage application has been rejected because of this and the house of your dreams has been sold to some one else. What recourse do you have? Since you are a savvy student of credit repair and enhancement you carefully craft a detailed dispute letter with attached photocopies of cancelled checks, letters and everything else you need to prove your case. You submit your evidence to the credit reporting agency(s) via US Postal Service, Certified mail, Return Receipt Requested. You have done everything anyone could be expected to do to prove your case. This should force deletion of the negative entry. You wait 30 days for your reply. What you may not be aware of is that your carefully assembled evidence gets reduced to 1 of 26 simple codes. Each code represents a category such as “not his/hers” or “claims inaccurate.” That code is what is forwarded to the alleged creditor who made the complaint. In effect your complaint with all its supporting evidence has been tossed into a blender. For all practical purposes your objection is now just one of a pack of thousands. There is actually a “reply all” mechanism that lets creditors verify thousands of disputed accounts at once. Your evidence is nothing more going forward than a code entry in the system. Your supporting documents never get to the alleged creditor.
Recent rules promulgated by the Consumer Financial Protection Bureau are designed to tighten up this whole process. I am watching this carefully in hope of real change. In the meantime I advise creating a very detailed paper trail so you can win with the CFPB.
e-OSCAR Automated Credit Dispute Verifications Over Simplifies
Let’s back up for a moment. e-OSCAR automated credit dispute calls itself the “Online Solution for Complete and Accurate Reporting” on its web site. It goes on to describe its role in automated credit dispute verifications as “intended to provide Credit Reporting Agencies with a correction to a consumer’s file that must be handled outside of the regular activity reporting cycle process. It is not intended as a substitute for in cycle reporting.” All creditor’s complaints are outside of “in cycle reporting.” The fair conclusion is that all creditor’s complaints are therefore fair game for the e-OSCAR automated credit dispute verifications system. If you want to find out more about e-OSCAR from the horse’s mouth good luck. Their web site is locked down to anyone who does not have a registered user name and password. That means all of us.
e-OSCAR saves the Credit Reporting Agencies and their Clients Money and Work
Nice efficient system for the credit reporting agencies and their client banks and collection agencies…but where’s the fairness for the consumer? In theory anything that speeds up the dispute process could benefit the consumer…but not at the expense of fairness and accuracy. We are legally entitled to a fair and impartial investigation of our complaints and this is not what we get. Instead of being investigated our complaints are rubber stamped and thrown back at us in the worst charade since the Wizard of Oz. Now we have to take the extra time to appeal to the Consumer Financial Protection Bureau.. I have no doubt that consumers are treated more fairly by the CFPA but how many consumers just give up, discouraged by the process? How many more lose out on a chance at a nice home that goes to someone else in the meantime?
Why is the e-OSCAR system tolerated by the overseers if it is so unfair?
You know the answer is money but you asked the question anyway. No human beings overseeing the complaints means no pesky salaries and benefits. Shredding the evidence is cheaper than having it read, evaluated and spending money on postage or preparing it for email or fax. Hopefully the CFPA will circle back to aggressively attack this problem when they are truly up and running with full confidence. In the meantime don’t take short cuts with your evidence. Hope for justice on your appeal. Carefully prepared and documented evidence will not be wasted there.