The E-Oscar or Online Solution for Complete and Accurate Reporting could be the reason why the credit bureau stands by its version of your credit report. Here’s why:
E-Oscar is the system used by credit bureaus to communicate a consumer’s dispute to the furnisher of information such as the credit card company. In this method, your written dispute letter is received and read by an employee of the credit bureau. The employee then classifies the type of dispute you have filed from among 26 codes offered in the system. The Automated Consumer Dispute Verification (ACDV) form which contains your personal information, the E-Oscar codes, and the one or two line narrative to support the codes used is then sent to the furnisher of information.
The problem with this method is that your dispute letter is reduced to codes and the copies of the evidence you sent to prove your case are not even provided to the lending company or institution. Now these supporting proofs are crucial for the furnisher of information to investigate your claim. Imagine if the employee codifies your dispute as “disputes amounts” or “claims account closed by consumer” without giving the credit company the proof you presented that showed the discrepancies! In essence, there was no investigation done which is a clear violation of the Fair Credit Reporting Act (FCRA).
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If you have every reason to believe that this inaccurate information should have been removed from your report, don’t take this sitting down. Resolving a dispute in your credit report means better credit scores that reflect on your worthiness as a debtor should you need to take out big loans like house mortgages later on.
You can question the E-Oscar method by requesting the credit bureau the Method of Verification (MOV) used in your case. This is an exercise of your rights under Section 611 (a) (6) and (7) of the FCRA and not a lot of people know this. In part, this provision states that if you so request, “a description of the procedure used to determine the accuracy and completeness of the information shall be provided to the consumer by the agency, including the business name and address of any furnisher of information contacted in connection with such information and the telephone number of such furnisher” and that the credit reporting agency is required to give a description of the reinvestigation procedure within 15 days after receiving your request.
Now be warned that this is not going to be an easy process. But since the MOV is considered a very powerful tool against credit bureaus, there is a strong chance that you will get the erroneous item removed from your credit report if you go this route. Here’s a short outline of the steps you need to take:
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