What if the credit agency denies my dispute?

Disputing negative credit report entries

Dispute (Photo credit: Wikipedia)

Disputing Negative Credit Report Entries

You have copies of your recent free credit reports.  You know that negative information must be both accurate and verifiable. You have filed your dispute in writing.  You have resisted the temptation of disputing negative credit report entries on line because you know that filing complaints on line requires the waiver of important legal rights.  You have carefully documented your evidence in writing where possible.You have received the answer from the credit reporting agency that you were not looking for.  You are still convinced that the negative information doesn’t belong there.

If you feel victimized by the presumption of guilt against you, the consumer, you have good reason. The e-OSCAR system is designed to treat disputing negative credit report entries with a one size fits all approach.  This approach is heavily weighted towards the creditor’s version of the story.  Under intense pressure from the Consumer Financial Protection Agency the credit reporting agencies are being forced to change their reflexive habit of finding against the consumer.  Change here is slow and grudging. What steps are available to you now?

You Haven’t Failed in Your Credit Report Dispute Yet

Write back to them with your detailed argument outlining why you are right and ask for a re-investigation.   At that time the agency must re-investigate. If the negative information is inaccurate or can no longer be verified it must be promptly deleted from your report.   Question the thoroughness of their investigation.  Credit reporting agencies group disputes with codes and don’t really investigate unless pressure is put on them. If the re-investigation does not resolve your dispute you may file an explanatory statement of 100 words or less but I strongly discourage this practice.  These statements usually do more harm than good.  A mortgage application has to be manually reviewed while the statement is pending,  The manual review slows down the process and may result in a higher interest rate.  Explanatory statements are useless.  Disputing negative credit report entries is only the beginning of the process.

Appeal to the Consumer Financial Protection Bureau

There is a very effective avenue open to consumers who have been treated unfairly by the credit bureaus.  It is very important that you document your case each step of the way.  The Consumer Financial Protection Bureau is in effect a Court of Appeals. Your painstaking documentation will not go unnoticed.  Here your dispute will get looked at by human beings, not machines.  Their web site is user friendly.  They’re waiting for your valid complaint.  You can even document the complaint’s progress through the system in real time!  I have yet to lose an appeal to the Consumer Financial Protection Bureau.  Many times the one who filed the complaint against you will not want to be involved with a Federal agency and will default.  That means you win.

you haven’t lost your dispute until you quit.
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After practicing law for 37 years Edward F. St. Onge, Sr. now devotes all his time to helping consumers achieve a high credit score with amazing speed. Learn the counter-intuitive secrets to credit scoring through his down to earth instructions backed by extensive knowledge of the laws and trends. All of the latest tricks and techniques that they don't want you to know now at your disposal. At last a level playing field for the consumer!

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