Your credit score is more than just a three-digit number; it's a financial lifeline that impacts everything from your ability to secure a mortgage or car loan to the interest rates you'll pay on credit cards. However, what happens when your credit report contains errors that unfairly lower your score? Unfortunately, correcting inaccuracies with the credit bureaus can be a nightmarish ordeal, leaving many individuals feeling trapped in a bureaucratic maze. In this blog post, we will explore just how difficult it can be to get things corrected with the credit bureaus.
Our client named LR100923 had always been vigilant about her finances and regularly monitored her credit reports. However, she was in for a rude awakening when she discovered an error on her credit reports from both TransUnion and Experian. On her credit reports, it shows an inquiry for a credit card that she never applied for. She only discovered it after receiving an envelope in the mail that felt like there was a credit or debit card inside the envelope. When she opened it, there was a card inside and she thought it was a promotional card to get her to apply for the card, but it looked so real.
She called the creditor The Bank of Missouri (TBOM)
and was told it was a card she applied for and was approved for with at $2000 limit. Instantly, she told them to close the card and that she never applied for the card. They closed the card for her but when she asked if the card would show on her credit reports, she was advised that it would, but it would show as closed. Our client noticed the inquiry in her report and asked can she get details on where and how the inquiry occurred, and all she was told was that it was online and no other information could be provided. Furious and worried, she filed an online dispute with the three credit bureaus to have the account removed and she also wanted the inquiry removed. All the credit reporting agencies denied her dispute and told her they verified the account, and it was accurate. She has also written to the CFPB and after 60 days no response. We met her at a Home Buyers Workshop where we were educating the class on the importance of credit and the importance of paying bills on time. She received our Smart Timer book at no charge for attending the class and she was excited to have something tangible that she can use to keep track of paying her bills. She loved the book we gave her.
When she had a chance to ask her question, we were shocked (well maybe not so shocked) that she had such a small problem and had spend so much time arguing to get resolved and after 4 months still had not been resolved.
The farthest she got was with the CFPB, but time had passed and no response. Her file showed her this statement that "it was sent to the company on this date and that the company has answered that it is still investigating your issue. It can take a corporation longer than 60 days to reply in some circumstances, and in those cases, they may need extra time".
To her dismay, our client received responses from both TransUnion and Experian, stating that they had investigated her dispute and determined that the information in her credit report was accurate. They refused to remove the error, insisting that it was her responsibility to resolve the issue with the creditor even after filing with the CFPB.
Therefore, We in CKEXPERTS told her we would meet with her after the homebuyer’s seminar to get her information and help her get the fraudulent account removed along with the two inquiries. Although there was no balance, the client was very protective of her credit and wanted the account removed because it was never her account and should never have been allowed to show up on her credit report.
This story serves as a reminder of the challenges many consumers face when disputing credit report errors with credit bureaus like TransUnion and Experian. It highlights the importance of collecting evidence, seeking legal assistance, and leveraging regulatory authorities when dealing with such issues.