Credit Rating Agencies & Credit Bureaus:
These agencies collect information to evaluate the creditworthiness of consumers from different sources. Creditors and public records such as lawsuits, tax liens, bankruptcies, charge-offs, and legal judgments are the major sources of consumers’ financial information. These credit bureaus maintain records in order to provide credit information services to consumers and lenders alike.
What Do the 3 Major Credit Bureaus Do?
The credit bureaus provide consumer credit information compiled by them to interested parties who require such data. For example, lenders, landlords, employers and insurers are some common interested parties who seek consumers’ credit information. However, these credit bureaus often make mistakes and send credit reports with glaring errors and inaccuracies.
Consumers remain unaware of these inaccuracies until they apply for some kind of credit and get shocked to learn they have a low credit score or negative items in their report. This is a serious situation as an inaccurate credit report may result in denial of mortgage, personal loan, car loan, rental home and even worse, losing out on employment opportunities. However, credit bureaus are NOT government agencies as some seem to believe and they have to follow federal laws when reporting on a consumer credit file.
Consumers Credit Reporting Protection
American consumers who are adversely affected from inaccurate information reported by the credit bureaus have several laws they can use to protect them. Some of the laws that protect the interests of consumers are:
- Fair Debt Collection Practices Act
- Fair Credit Reporting Act
- Fair and Accurate Credit Transaction Act
Build My Scores undertakes a thorough evaluation of the information provided by the credit bureaus and collection agencies to help troubled consumers. First, we carefully research the information provided by the three major credit bureaus. Subsequently, we draft audit letters to the credit bureaus requesting them to verify the information is not mismatched, duplicate reporting, and much more.
We also ask them to disclose their method of gathering information to get a better insight into the procedure they follow. We then audit the collection companies and creditors demanding an explanation with documentary evidence of all the negative items on a consumer’s credit report. Our audit letters demand original documentary proof from the creditors and collection agencies.
Whether the mistake was committed by a creditor or a credit bureau, we can remove inaccuracies and undocumented information with our multi-phased audit process.
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