Credit Report Dispute
Credit Report is otherwise known as the Credit History which is a record of the individual clients or companys borrowing and repaying details including information pertaining to delayed payments and bankruptcy This is also to be called as Credit Score or Credit Reputation on the part of the client. When the client sends his application for a credit and that information is sent to the Credit Bureau to verify the status of the accounts and address and employment details, based on the reliability of the information the creditor decides the Credit Worthiness of the individual to take final decision in order to sanction the loan.
To determine the Credit Rating
In order to determine the Credit Rating, there are several factors that one should keep in mind for the purpose of comprehending the gravity of the subject matter. First of all, Payment Record is the main factor and if so many bills are pending, the Credit Rating will come down. Secondly, the control of the debt is the most important factor whether the client is able to meet both the ends, so to say, income and expenditure. It is obvious to note that after deducting the taxable income, 15% of the borrowers income must go to meet the EMI payments.. Thirdly the positive signs of responsibility and stability are perceived taking into account the borrower?s home and job.If the job is a respected one it will enhance the credit rating. Fourthly, the credit history is written again with a fresh start on a particular account which helps in enhancing the credit score. Fifthly, if the client is said to have a number of credit cards and some of them remain unused not his credit score will come down resulting in his poor credit worthiness.
Credit Report Disputes
In the credit report relevant information is given with regard to residence, how the bills are paid by the client and apart from the particulars whether the client has been ever arrested or sued for bankruptcy. The Reporting agencies sell these particulars to the creditors, insurers, employees and other business circles who need the credit report. Whenever ones ends in his application for credit transaction or makes payments, all the relevant particulars will be entered in the person?s file..
Client and the report
So it becomes necessary on the part of the client to review the credit report and all details whether to sanction the loan or how much the client will be able to pay back tow. Sometimes identity theft may occur. Such indentity thieves may steal personal information and open credit in the same name; the payments are likely not to be made and eventually the account owner is liable to answer. Suppose the company may take action against the client and deny application for credit and the client may ask for a report, within sixty days of getting notice of action. And the notice will give the name, address,and phone number of the consumer reporting.
Errors
If the report is said to have errors, that corrections can be made that both the consumer and the agencies in charge of credit report, are responsible for doing the same so that incomplete information does not find a place in the credit report of the consumer. The information must be passed on to the consumer and even after errors are rectified and that too must be communicated without causing delay. So disputes have two aspects,. Credit dispute and Account information dispute and for this purpose there is a separate form to be filled and sent the same describing the dispute as short as possible such as not in account paid in full current status incorrect, So these corrections are to be made and sent to the credit bureaus that will register all the incoming particulars for future guidance
Credit dispute or repair
Credit dispute can be termed as credit repair which means to rehabilitate the consumers credit worthiness or financial credit reputation. In the beginning copies of the credit reports are obtained from the credit bureau and then the incorrect information is revealed for omissions or commissions by means of a formal dispute. There are many rules and regulations to govern this process so the individual consumer must evince his keen interest on the whole for the successful recorrections. So the consumer must enclose the damaged the report first of all with the necessary errors and correcting the same. This process requires time as well as patience and keen attention pertaining to each detail.
Ten steps
i) A letter must be sent at once with all the necessary corrections by certified mail with return receipt.
ii) Mark the calendar for 30 days: The consumer better to be safe on his part is expected to mark his calendar for thirty days soon after getting the return letter from the bureau.
iii) After waiting for thirty days, if there is no response ,the consumer can send a demand letter with a copy of the original sent earlier..
iv) This time another fifteen days time may be given to make corrections
v) If necessary ,the consumer must send the second demand letter to the bureau.
vi) The next step is to file the dispute directly with the original creditor. The consumer may ask the creditor to remove the unwanted details.
vii) Again thirty days time must be given for the purpose stated in the sixth point.
viii) Another demand letter has to be sent giving time for 15 days
ix) The consumer must add a hundred word statement to his credit file afterwards.
Legal advice can be sought if necessary and if there is violation on the part of the bureau in making corrections and the legal remedy should be the last resort as it is time comsuming.
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