Bad Credit Repair Roadblocks Forces Big-Time Consumer Advocate To Condemn Current Credit Reporting System In Front Of Senate Subcommittee!
80% of all credit reports contain reporting errors!
25% of credit reports contain reporting errors serious enough to get your mortgage application REJECTED!
U.S. Public Interest Research Group (U.S. PIRG) further warns thirty percent (30%) of your reports incorrectly report closed accounts as open accounts and fifty-four (54%) of your reports contain personal information that is wrong or inaccurate.
Is this a problem?
Hell yes, this is a problem. This is an epidemic!
80 freakin’ percent of credit reports? This is a failed system. PERIOD!
What Watchdog Attorney Leonard Bennett (representing the National Association of Consumer Advocates) told a bunch of Senators during a Senate Subcommittee hearing should have stopped the Media in its tracks.
Who do you think FIRST sees your dispute letter? This video will blow your mind!
Click Read More Now below for the rest of Bennett’s riveting testimony that should have been picked up by EVERY stinkin’ news outlet and plastered on every newspaper’s front page.
You tell me below in the comment box our credit system isn’t “failing.” Our credit system is DEAD!!!!
BEYOND THE TIPPING POINT….
Whoa! Let me get this straight:
Equifax outsources dispute letters to the Phillipines and Jamaica! Transunion outsources to India. Who knows to what country Experian outsources. Chances are, it’s definitely not the United States.
Damn right, I’m angry and frustrated.
Why should you or I have to FIGHT what seems like a losing battle sometimes to get what we deserve: 100% accurate credit reporting.
You and I didn’t ask to have our lives documented at Equifax, Experian & Transunion.
We didn’t ask to have this credit file pulled & possibly rejected every time we want to get a new job or cell phone or apartment or insurance or a car or a home or….
All right, you get the point.
Oh, how did I forget Identity Theft. Good luck trying to get your life back if/when you become a victim of Identity Theft.
Have you ever tried to dispute an “error” on your credit reports? A BAD CREDIT account not even yours appears on your reports. This account has dropped your scores over 100 points.
You don’t know what you’re doing but the FTC (Federal Trade Commission) website tells you to send a letter to the reporting bureau, informing the bureau of this inaccurate reporting error.
Wow, sounds simple.
So you fire off a simple letter with a simple stamp to each bureau reporting this BAD CREDIT account. About 36 days later, you receive a letter from each bureau kindly informing you this 100% BAD CREDIT ACCOUNT CLEARLY NOT YOURS is “verified and accurate.”
WTF!!!!!!!!!
Verified and accurate???
Not what? Where do you turn? What do you do next? You find this blog, for instance, and begin reading horror stories about people in a similar situation who continue disputing (using the same letter but with more stern language).
They end up getting that account flagged, as the bureaus REFUSE to re-investigate. The bureaus continue all disputes of this account to be FRIVOLOUS!
WTF!!!!!!!!!
Mr. Bennett’s stunning testimony should scare the hell out of all of us.
This is much more serious (and scary) than even I had thought.
Leonard A. Bennett P.C., a Consumer Protection Attorney FAIR CREDIT REPORTING ACT: HOW IT FUNCTIONS FOR CONSUMERS AND THE ECONOMY . Wednesday, June 4, 2003 — U.S. House of Representatives, Subcommittee on Financial Institutions and Consumer Credit
http://commdocs.house.gov/committees/bank/hba92232.000/hba92232_0f.htm
Mr. Bennett says:
“Good morning, distinguished members of the committee and subcommittee. My name is Leonard Bennett. I am here on behalf of and as a member of the National Association of Consumer Advocates, the organization that includes among other things 850 members, many of whom, as myself, are consumer protection attorneys. I litigate these cases. This is the first time I have appeared before Congress. I am not sure if I will appear again.
I come from a conservative background. I went to the George Mason University School of Law and Economics, and had as one of my teachers Justice Ginsburg. I have a finance degree and have what I believe to be the only frontline experience other than the Vermont Assistant Attorney General that you heard from today, and I might be one of the few speakers that you hear from that has that experience.
You pass laws. We can talk about the policy, and you can talk and debate about the statistics analyzed by government analysts, government relations, and spokespersons for trade groups. But I am the individual who goes into court, in my case the Richmond federal court, not known for its liberal views, and attempt to enforce these laws. As a conservative by ideology, I do not want the Federal Trade Commission to have an army of regulators patrolling the streets in my community to enforce these laws. So I am supportive of the efforts of NACA [National Association of Consumer Advocates @ http://www.naca.net], the efforts of Congress in providing us tools to enforce the law by private cause of action.
I have heard a lot today about the importance of credit and information. There is an important concept I learned, one of the few things I may recall from my finance undergraduate degree, called the efficient market hypothesis. That concept is that business actors can only make within a stock market context rational decisions when they have accurate information. It is true that Hispanic businesses need accurate information to make decisions and that Allstate, if it knows whether or not an individual has positive credit and is a good credit risk, may want to consider that in its decisions. It is true that Juniper Bank may want to know and may want access to information about whose credit is acceptable. But without accurate information, all of those systems, all of those decisions fail.
Our economy has a problem. The problem is, our credit system is failing. I am a proud American and I would put our system up against anyone’s system in the world, but we can do better. The Fair Credit Reporting Act has failed. Bankruptcies are skyrocketing. That means Juniper Bank and State Farm and other businesses that use credit reports are not able to make rational decisions and predict who is going to file bankruptcy. Identity theft is up. [Mike's Note: Wait until you hear who the new victims of identity theft are. This will SHOCK you].
Identity theft is a symptom. It is not a cause; it is not an isolated problem. It is a symptom of a broken system.
I have in my written remarks provided details of the mechanics of the system. For those that were here for the last panel, and a number of questions that the distinguished representative from New York asked, or the ranking member asked, these questions are answered.
I have about a minute and 28 seconds. I want to point to just one of those, and that is the failure of the reinvestigation system, and let you know how it works. Whenever you have a credit problem, you contact me or you write a letter to the credit bureaus. Eighty percent of the disputes come in by writing; 20 percent by phone call. They have minimum wage employees that have to process one consumer every four minutes or less. In the case of Equifax, and as a proud American this particularly offends me, Equifax contracts out their dispute work to a foreign company in Jamaica, that uses Jamaican employees. I assume it is not a jobs program for lesser-developed nations, but rather to save money.
Your dispute, in my case the letter, may attach documents, paid-in-full notes, a letter from the creditor, whatever, if you are an identity theft victim, or otherwise it is reduced to a two-digit code for identity theft or a mixed identity. For the representative from New York’s problem, that code will come out to the furnisher, not his/her. That is all they get.
I am glad that Representative Castle is not here, because I litigated the only case, the only one since 1997, since the 1996 amendments took effect in 1997, against a furnisher that has ever been able to go to trial. We won in Richmond. The defendant was MBNA. MBNA said, and this is the last thing I will read, that there are no national standards. I quote that, and I will not read it again. It is in my written testimony. MBNA’s position on appeal in their appellate brief is, dear judge, dear court of appeals, there are no national standards that regulate furnishers. Read the position of the largest credit card company in America.”
The rest of Bennett’s testimony shares valuable insight into the problems of our current credit reporting and repair system.
Un-Believable!
Contact Chi Chi Wu NCLC or cwu nclc org --
Now you know exactly why fixing your damaged credit is not easy. The dispute system is broken, and you must be well-informed and prepared for persistent action to get what you deserve: 100% accurate reporting!
Bad credit repair is more challenging than you thought, isn’t it? By no means is it easy or impossible. You must be persistent. Scroll down now to tell me what you think of this outrageous practice. No wonder disputing requires more than a simple letter. To get my popular CD 8 SECRETS TO A 680 CREDIT SCORE! enter your email address right now in the box at the top right of this window (I reserve the right to cancel this special offer at any time and without further notice).
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