Credit Reports for $150,000+ Loans

Discussion in 'Credit Talk' started by JohnM, Jul 28, 2002.

  1. JohnM

    JohnM Well-Known Member

    The derogatory information that we assume that is gone by â??ageing offâ? (generally by being more than seven years old) is being retained in our files. It can be used without time limitation on credit reports furnished for certain purposes. (See FCRA 605(b)(1))

    Anyone that pulls a report used for a loan of more than $150,000 sees a totally different report than the one we are provided by the CRAâ??s. It contains all those negative items that we assumed were gone for good. How can the CRAâ??s justify withholding this information from us? I believe they canâ??t.

    I find no exemption in the FCRA or any FTC opinions that authorizes a CRA to withhold certain information from us and then use that information in a credit report furnished to someone else. In fact the FCRA (609(a)(1)) requires disclosure of â??all information in the consumers fileâ?.


    Has anyone ever requested and\or received a â??fullâ? report from a CRA? It seems we are being shown only a partial view of our files and not the complete information. This action seems to be in direct violation of the FCRA


    JohnM
     
  2. charlieslex

    charlieslex Well-Known Member

    JohnM, Where are you getting your info that there is a different set of standards for over $150,000? I'm not doubting you, just asking? I have a mortgage banker that I can ask if you can give specific examples. Charlie
     
  3. mitchra

    mitchra Well-Known Member

    He is getting it from the FCRA... I was under the impression that CRA's gave the same report no matter how much the loan is for due to systems limitations.

    Has any one ever applied for a loan or job >$150,000 and seen whether the report is different than the regular reports?
     
  4. charlieslex

    charlieslex Well-Known Member

    I understand the FCRA part, it's the $150k part I'm asking for an example of. Charlie
     
  5. LKH

    LKH Well-Known Member

    It is right there in the FCRA:


    § 605. Requirements relating to information contained in consumer reports [15 U.S.C. § 1681c]

    (a) Information excluded from consumer reports. Except as authorized under subsection (b) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information:

    (1) Cases under title 11 [United States Code] or under the Bankruptcy Act that, from the date of entry of the order for relief or the date of adjudication, as the case may be, antedate the report by more than 10 years.

    (2) Civil suits, civil judgments, and records of arrest that from date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period.

    (3) Paid tax liens which, from date of payment, antedate the report by more than seven years.

    (4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years.(1)

    (5) Any other adverse item of information, other than records of convictions of crimes which antedates the report by more than seven years.1
    (b) Exempted cases. The provisions of subsection (a) of this section are not applicable in the case of any consumer credit report to be used in connection with

    (1) a credit transaction involving, or which may reasonably be expected to involve, a principal amount of $150,000 or more;

    (2) the underwriting of life insurance involving, or which may reasonably be expected to involve, a face amount of $150,000 or more; or

    (3) the employment of any individual at an annual salary which equals, or which may reasonably be expected to equal $75,000, or more.
     
  6. JohnM

    JohnM Well-Known Member

    I read a post on this board were the mortgage report WAS different from the CRA's regular report and old outdated info was reported.

    I wondered if anyone else has had it happen. One thing that seems to be true with the CRA's. If it happens once to anyone, it can happen again to you.

    I believe this is a loophole that just doesnt get caught often and I'm going to ask for a "full" report and see what happens. In todays real estate market a >$15,000 loan is not unusual.


    JohnM
     
  7. PsychDoc

    PsychDoc Well-Known Member

    Re: Credit Reports for $150,000+ Lo

    Well it wasn't true in my case. We just acquired a mortgage well in excess of the $150k example mentioned in this thread. My reports were perfect, and no deleted info appeared at all.

    Doc
     
  8. JohnM

    JohnM Well-Known Member

    Re: Credit Reports for $150,000+ Lo

    Doc,

    I saw this post (EXP hides old/deleted info!!!!) in which outdated info DID show up on a tri-merged report and it raised a red flag. I wanted to know if anyone else has had this experience?

    I am going for a new mortgage and dont want any surprises!


    Thanks,

    JohnM
     
  9. Igotarock

    Igotarock Well-Known Member

    Re: Credit Reports for $150,000+ Lo

    There was definitely more information on my tri-merged report than there is on the single reports I've collected from each of the CRAs. I think you are on to something. And putting two and two together, I realize this could also be the answer to how an ex bf from 10 years ago keeps getting preapproved cc offers sent to my new address now that my credit is looking better. There's got to be a report somewhere that still has his name linked to mine. ugh..
     
  10. IndyGreg

    IndyGreg Well-Known Member

    Re: Credit Reports for $150,000+ Lo

    It's seems to me that the FCRA exemption for large loans, life insurance, and high salary jobs applies to TIME LIMITS ONLY, not to old deleted information.

    In other words, if an item no longer appears on your "regular" report because it is over 7 years old, then it could still appear on the "no time limit" report. However, if you disputed an item and it was unverified, it should be gone from ALL reports since the FCRA allows only "accurate and verifiable" information to be reported.

    I've never seen a "no time limit" report before. But, if they show information that was unverified, it would seem to be grounds for a lawsuit.

    Finally, the dollar limits under FCRA need to be ADJUSTED for INFLATION. When the law was written they may have been uncommon, but now loans & salaries above those limits are common.

    Greg
     
  11. WALLST

    WALLST Well-Known Member

    Re: Credit Reports for $150,000+ Lo

    This just happened to me on Saturday, the tri-merge on me shows an 87 chargeoff from Time Warner Cable which was deletd via dispute by equifax in 2000. My wife had a repo with Mazda credit deleted over a year ago via dispute with Equifax and it showed up on the tri-merge. Both were on the tri-merge repoted by equifax. This was just a prequal pull by the mortgage person for the home builer with no loan amount associated with it.

    Do I have a case against Equifax? I have both of the results of the disputes where these tradelines were deleted.
     
  12. JohnM

    JohnM Well-Known Member

    Re: Credit Reports for $150,000+ Lo


    Thank you WALLST......I was hoping to get a response like yours. Do you have a case YES..that is exactly the situation I thought might be happening.


    JohnM
     
  13. kittiekat3

    kittiekat3 Well-Known Member

    Re: Credit Reports for $150,000+ Lo

    It's kinda sad to think that all of the items I have FINALLY gotten deleted (mostly outdated) may reappear on the tri-merge when I go to get a mortgage in November....

    Do you have to show the morgage lender that those things have been removed?
     
  14. PsychDoc

    PsychDoc Well-Known Member

    Re: Credit Reports for $150,000+ Lo

    What I'm wondering is why this doesn't happen always? In my case, I had many items deleted from all three CRA reports. Not one single deleted tradeline reappeared on the tri-merge that was pulled by our mortgage company. I saw the report myself -- they used First American CREDCO, which I understand is the largest tri-merge supplier to the mortgage industry. Under what conditions do items reappear vs. not?

    Here are a few line item facts that may help us dissect the question:
    1) I had no chargeoffs.
    2) I had no unpaid debts; all deleted tradelines were for fully-paid accounts.
    3) I had MANY very late (some 120+ day late account) tradelines.
    4) All late tradelines were either credit cards or student loans.
    5) Some of the deleted tradelines were removed by regular CRA disputes, while others were removed by OC UDF forms, while still others were removed as a result of my successful 3 lawsuits against the 3 CRAs.

    Hopefully this will help unravel this mystery.

    Doc
     
  15. charlieslex

    charlieslex Well-Known Member

    Re: Credit Reports for $150,000+ Lo

    Why not tell the mortgage company that you will pull your own reports, because it won't show as a hard? I have a friend that told his mortgage company that, and they said OK if it was less than a week old. He showed it was only a few hours old and he got the loan. Charlie
     
  16. JohnM

    JohnM Well-Known Member

    Re: Credit Reports for $150,000+ Lo

    I reread your post and if these were deleted via DISPUTE then the case against a CRA is a slam duck. You disputed the accuracy of the info not the date of experation of the info.

    It was removed because it could not be proven to be accurate, not because it was outdated. No exemption exists for reporting incorrect information

    This practice is a direct violation of the FCRA. One which any judge could understand, the defense of you still owe the debt wouldnt even be able to confuse a judge.

    This could be like free money to anyone charged a higher interest rate or denied credit bcause of this practice.


    JohnM
     
  17. WALLST

    WALLST Well-Known Member

    Re: Credit Reports for $150,000+ Lo

    Yes, both were disputed as "not mine", Equifax could not verify and sent me back that standard letter back"this item could not be verified and has been deleted"
     
  18. JohnM

    JohnM Well-Known Member

    Re: Credit Reports for $150,000+ Lo

    WS,

    Well I guess they lied to you. It's not deleted if it's given in a credit report. Have you called Equifax and complained yet? I would love to hear the excuse you are given.

    I am going to request a +$150K report from all three and see what is added back that was INCORRECT and disputed off.This could be interesting.

    JohnM
     
  19. MandyB

    MandyB Well-Known Member

    Re: Credit Reports for $150,000+ Lo

    And maybe one more thing to look at is -
    From which bureau does this surprise information come? Is it Equifax only or have people had experiences w/ information popping up from other bureaus?
     
  20. MandyB

    MandyB Well-Known Member

    Re: Credit Reports for $150,000+ Lo

    I would be interested in hearing if they will give you one of these rpts. I was going to call myself but I figured that I would hear a lot of "we don't know what you're talking about, yaddy yaddy, ya."
     

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