We support reforms to the financial marketplace to curb bad practices by banks and lenders.
We all know that our credit reports and credit scores can have a huge impact on our lives. They are used to determine whether we can get a loan, and at what price. They can be used to screen us as tenants or even job applicants. And if a credit report has a damaging error on it, that error can be tough to fix.
Really tough.
Red Tape Chronicles featured a story from Tom Tupper, a consumer who found an error on his credit report that the credit bureau refused to remove, even after he sent them a huge stack of evidence to prove that it had made a mistake. TransUnion had listed that Tupper was late on a car loan, but Tupper had the records – including copies of checks, account statements and payoff statements – showing he was fully paid up and on time. He disputed the error and produced the documents, only to be told that his request was denied:
“It is really quite appalling when you really think about it,” Tupper said. “When I gave that proof to TU and demanded they remove the incorrect entry, they basically ignored me and sided with the data furnisher… So here is the rub: What’s to stop anyone from reporting anything derogatory about you to a (credit bureau)?”
Eventually, Tupper resolved the problem by going to the lender that had furnished the data to TransUnion and had the lender fix the error. Consumers now have the right to go straight to the furnisher to fix an error – a little-known right that was implemented by the federal government in 2009.
Unfortunately, Tupper’s story is not uncommon. Credit reports can have substantial errors, and those errors can harm your credit score and cause you to be wrongfully denied credit or be offered credit on worse terms. (This is yet another reason why we need a strong, fully-functioning CFPB – the CFPB will have the authority to examine the credit bureaus’ practices, but it needs a permanent director before it can begin its nonbank supervision program. Which is being blocked by a group of Senators.)
Consumers should check their credit scores annually for errors. You can check it for free by going to AnnualCreditReport.com/a>. If you do find and error use these tips to help you fix it.
I discovered an error on my TransUnion Credit Report.
The report stated that my previous address was a bar or restaurant. I asked TransUnion them to remove that remark since it was untrue.
Here is what happened-
1. Filed Dispute by Certified Mail – Received a written response stating the purposes of Special Messages of which appeared on my credit report to be displayed to all that inquired. I have a freeze on my credit bureau- what good did this do?
The Fair Credit Reporting Act states TransUnion should respond within 30 days.
2. Called TransUnion at 27 days after they received Certified Mail dispute. Transunion employee stated that they added a message to the statement that I lived at a bar or restaurant telling the reader to verify this information. Note that under the law TransUnion was to notify of what action they took- they never did that.
I told the employee that this false information under the Fair Credit Reporting Act
must be removed. The employee stated she did not have that authority, but would have an employee of higher authority call with 24 hours.
3. After 48 hours TransUnion called- The employee stated that TransUnion could not remove that message on my credit report- Only the Creditor or Inquirer could do that- I asked for the Creditors name and address- she stated that she could not release that information- and referred me to the TransUnion Corporate headquarters at 555 West Adams in Chicago IL and gave me the phone number of 312-258-1818.
4. Called 312-258 1818- Got TransUnion Call Center in India- explained the problem and they had no idea of what to do about it.
5. Google TransUnion and got new Corporate phone number of 312-258-1717.
6. Called TransUnion at 312-258- 1717- finally got voice mail of legal department Christine Camba. Left a message and told her better call me instead of playing a game with me. Better comply with the Fair Credit Reporting Act.
7. Called the new Consumer Financial Protection Bureau202-622-2000-The phone answered and stated to leave a message. 5 days later the CFPB called and stated to call 855 411 2372 to file a complaint.
8. Called the CFPB 855 411 2372- They stated at this time they do not do anything with Consumer problems concerning credit reporting agencies- stated that I should call the Federal Trade Commission.
9. Called the Federal Trade Commission- they stated will assign and take the complaint.
Then they will wait until enough complaints of that type have been taken and then would investigate. They stated it could take a long time.
10. Called the Ohio State Attorney Generals Office and requested the forms to file a complaint.
Bottom line – it would appear that I can file a lawsuit in Federal Court. I can represent myself. Being Irish I just might do that since the filing fees are under a hundred dollars.
The way I see it- someone said something that was a lie about me and TransUnion repeated that lie. TransUnion is now telling me in essence to prove that was a lie.
The Fair Credit Reporting Act at this point is a feel good law since when you go to use it
you find that the “ advertising is better than the product” type of law.
Now I am thinking “slander”