Lawmakers Want To Fast Track Rules To Ease Consumers' Correction Of Bad Credit Report Data

from the credibility-and-credit-ability dept

Wed, Jun 20th 2007 9:18pm — Carlo Longino

One of the lingering effects of identity theft is the long-term damage it can do to a victim's credit report, mainly because it's extremely difficult to correct wrong information that credit agencies and other personal-data collectors keep. And from the looks of things, it appears that they've got plenty of incorrect information. This is just one issue facing credit agencies, who are coming under fire from consumers and lawmakers for these sorts of issues, while lenders are increasingly unhappy with their practices as well. The credit agencies' response has generally been to circle the wagons and resist any changes, but now there appears to be growing momentum in Congress to force credit bureaus to make it easier for consumers to correct incorrect information on their credit reports, as well as to make efforts to ensure that the companies furnishing credit information are submitting correct info. Unsurprisingly, the credit bureaus say that any new rules are unnecessary, and that the number of errors is declining, though some will be inevitable. It's still hard to believe that these companies would resist measures to make their information more accurate -- unless, of course, so much of it is wrong that exposing the depths of their inaccuracy would be detrimental to their business.

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10 Comments

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Dude, 20 Jun 2007 @ 10:18pm

When I was 18 my father stole my ss number to run up a bunch of debt and refinance a mortgage. He of course defaulted on the mortgage and now, eight years later I still haven't been able to get that shit erased. It's followed me my entire adult life and none of the 3 majors have been any help at all. Fuck all three of them.
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Dude #2, 20 Jun 2007 @ 10:40pm

What else would they be thinking...
Has anyone ever stopped to think that the Credit Bureau's are actually funded by credit card companies? What else would be in their best interest outside of reporting incorrect information to charge higher interest rates. In the end it's all about the $,$$$,$$$,$$$,$$$'s
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glitch, 20 Jun 2007 @ 11:45pm

there are no customer rights when it comes to thes
and then there is no way to opt out of any of them

why did my landlord or insurance company have to get a report ???

insurance is based on my health. yet they didnt request health records.

i haven't been late on or missed a rent payment since 1990.

also, the utilitiy companies never asked for a credit report, yet, routinely submit reports "for me".

it is all BS and about money..
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Jerry, 21 Jun 2007 @ 2:39am

Bad link in article
I clicked on the "it's extremely difficult" link above expecting to see something about dealing with credit bureaus, but instead the link leads to something about job interveiws in Second Life.
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Kevin, 21 Jun 2007 @ 3:45am

8 years?
When I was 18 my father stole my ss number to run up a bunch of debt and refinance a mortgage. He of course defaulted on the mortgage and now, eight years later I still haven't been able to get that shit erased. It's followed me my entire adult life and none of the 3 majors have been any help at all. Fuck all three of them.

They're only allowed to keep reporting on it for 7 years after the last activity on the account. At this point it should have already fallen off. If it hasn't, all it should take is a certified letter to each of the agencies pointing out that they are reporting data that is over 7 years old and it should go away. The only problem would be if there were collection, payment, or other activity related to the account since then, since that resets the clock.
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Steve, 21 Jun 2007 @ 6:07am

A Positive Ending
I canceled a credit card in college, but before they closed the account but after I called and cut up the card, Blockbuster charged me a $3 late charge. 4 years later, I applied for a new card and was turned down due to my incredibly late payment, which was still outstanding, despite it being for $3. I called the credit card company and sorted it out and closed the account. Then I went to Transunion.com. I was mortified to find out the online form for complaints didn't even HAVE a comments field, so I couldn't even explain what was wrong, just had to choose the most correct of the vague choices.

Meanwhile, 3 weeks later, I got a new, completely clean credit report in the mail, with no hassle of any kind. So sometimes the system works! It could stand a bit of transparency, but I'm amazed I'm not still fighting.
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BadgerMilk, 21 Jun 2007 @ 7:24am

Not really
"The only problem would be if there were collection, payment, or other activity related to the account since then, since that resets the clock."

This is an incorrect statement. The 7 year clock starts from the time that you first default on the loan. My brother had an account that did not go to collections for 6 months after he defaulted he later settled with the collection company years after and it was removed from his report 7 years from the date he FIRST defaulted
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Carlo, 21 Jun 2007 @ 1:00pm

Re: Bad link in article
Thanks, Jerry. Fixed now.
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RICK, 6 May 2008 @ 7:32am

Re: there are no customer rights when it comes to thes
YES YOU ARE DEAD ON.
I HAVE HAD HARTFORD AUTO INSURANCE FOR A YEAR. WHEN IT CAME TIME TO RENEW FOR THE SECOND YEAR MY RATE WAS INCREASED BY OVER 100 DOLLARS. MIND YOU I HAVE BEEN DRIVING FOR 50 YEARS AND HAVE NEVER BEEN IN A WRECK OR FILED A CLAIM OF ANY KIND. WHY THE INCREASE??SIMPLE THE FUCKS AT HARTFORD INSURANCE RAN ME THRU THE CREDIT BUREAU AND SAW THERE OPENING TO FUCK ME OUT OF MORE MONEY. WHAT DOES MY CREDIT HAVE TO DO WITH MY DRIVING RECORD?? OK LETS HEAR IT YOU BRILLIANT CORPORATE MONEY FUCKS.
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Jon, 24 Aug 2010 @ 2:04pm

These credit reporting agencies are unconstitutional, they disregard the laws and the faicredit act. They ruin people's lives needlessly and report all kinds of false statements that amount to libel in my opinion. It is impossible for a person to get anything corrected without paying fee. It is also impossible in my case to receive a free yearly report as stated by the law without paying a fee.Thiese companies need to be destroyed by force and brought to justice for their civil rights violations.
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