It seems there are three types of "disputes" 1) There is the dispute you send to the source of the item (the furnisher). The furnisher is required to mark the account in dispute until it is resolved between the consumer and the furnisher. The account shows no status until it is resolved, which can be for months or years. This is why the furnisher won't mark it disputed, because it becomes useless to them as a collection tool and why the FCRA provides recourse for when they don't mark it disputed. But you still have to make them send it to the CRA as disputed, which is apparently not the consumer's job, but the state or federal official's job, and we know how hard that is, but I believe that is why a lot of these letters involving the AG or other state agencies are successful in getting the items deleted. The furnisher - when contacted by a state or federal official KNOWS that he has to put this account in dispute when reporting to the CRA and rather than dealing with a potential lawsuit against them from the state or federal level chooses to delete the item. HOWEVER, there is still recourse to sue under sub-section b for the "other damages" by the consumer. 2) There is the dispute you send to the CRA. This has a time limit on it (30 days) at which time, the CRA either verifies it, (yeah, right) or deletes it. During this time, again, it is disputed and no status. 3) There is the dispute which a consumer can place on their report if they have had the first dispute validated by the source (in court or whatever) or the dispute that they have sent to the CRAs is "verified" by the CRAs, the consumer STILL disputes it, and wants to put it on their record. This is the consumer statement you are referring to, which is NOT the same as a furnisher dispute (see 1). From Law Watch - Page 4, Column 1 http://www.mansfieldtanick.com/pdfs/lawsum01.pdf This site particularly clarifies the three types of disputes. I guess actually they really just think of them as two types - the one with the furnisher and the one with the CRA, although the CRA really has two types - the investigative one and then the statement by consumer. I really do not think I am reading this incorrectly, it seems very straightforward, but please play devil's advocate.
OK. That would imply that one of us disputing a tradeline puts a "customer dispute" notation on the file. So if we disputed with the furnisher and they failed to put a "furnisher's dispute" notation (and thus void the status line) they would still be in violation of the FRCA. This sometimes happens when the furnisher checks the status and sees "in dispute" or "under investigation" and thinks he has no obligation to report it as "in dispute" himself. This would give us additional ammunition, wouldn't you think? Dancer
Disputes are for Consumer Reporting Agencies (CRA's). Here you are disputing the listing, and the CRA must verify the listing with the creditor. If an item is verified, you can demand to see the procedures used in verification (ie who verified, what is their name and address, and what information did they respond with - like a signed document showing you agreed to the loan along with statements and payment receipts). Validation is what you demand from Creditors (or furnishers as you describe above). CA's are obligated to validate the debt with the original creditor and must reply to your request with satisfactory evidence that you owe the debt, and the amount they are collecting on, is what you truly owe. Here again they must send you evidence you owe the debt (like the procedural request above). Original creditors are under somewhat different obligations than CA's but there are validation letters for original creditors also. The third thing you are talking about is really 2 things, both relating to a notation on your account under that listing. One is a notation that the "consumer disputes the listing", and that is placed on the listing during their verification process. The other is a consumer statement, that even though the item has been verified, you can request, and they are required to put, in your words, a notation that you dispute the debt even though it has been verified. I truly think this is of little value but it is a final option to take if you can not get the item corrected or removed. A CRA or a creditor who refuses to oblige by the rules is in violation of any of these items some violations are FCRA violations and some FDCPA violations but they are all violations of things you are entitled to by law. -Peace, Dave
Actually, from what I understand, once an account is noted as in dispute from the furnisher, it is shown as no status from the CRA which is really of great significance to us. And the furnisher does have to place it "in dispute" if contacted by the consumer that the item is in dispute. The CRA is merely the reporting mechanism, not the person whom the consumer is reporting the dispute to. It's pretty clear from this article from the FTC: "What Information Providers Need to Know": http://www.ftc.gov/bcp/conline/pubs/buspubs/infopro.pdf and Experian's "Ask Max" column also addresses these three separate issues of dispute: "Meanwhile, the health club can report the delinquencies to Experian. But if you have disputed the billing in writing, the Fair Credit Reporting Act requires them to indicate the information is in dispute. (comment - first type) Experian includes a comment with the account on your credit history stating the information is in dispute. Usually, the account is shown as in dispute and with no status for the months the dispute is reported. Get a copy of your credit report to see how the account is being reported. If it is reported as delinquent but not in dispute, ask Experian to dispute the delinquency as inaccurate. Experian will contact the health club on your behalf. (comment - 2nd type of dispute) If the health club verifies the information as accurate, and you disagree, you can have a dispute statement added to the account. A dispute statement gives you a chance to tell your side of the story. An Experian representative can help you write it. The statement will remain on your report until you ask that it be removed. (comment - 3rd type of dispute) Full Text Here: http://www.experian.com/corporate/max/max120998c.html
Maybe it is just semantics, but they are really not 3 types of disputes...you dispute a listing(only type of dispute), the "in dispute" statement goes on the listing according to the FCRA (see below)...if they verify, you can add a statement in your own words about the disputed account that goes on that listing (same dispute as above, just 100 words or less associated with the listing). The statement is what I think is no big deal as I said in the earlier post. If you are wondering whether the "in dispute" status affects or more correctly does NOT affect your report/score and therefore your ability to get credit, that has been debated here alot. Some have been shown that a disputed account has no effect on your profile while listed as "in dispute"...and therefore it benefits you to dispute right before applying for credit, others have found that not to be true. I would guess it depends on factors like - if a human or a machine review your report. Scoring algorithms should be programmed NOT to include the disputed listings, but WHO KNOWS right. -Peace, Dave
I think you are missing the point I am trying to make. For the moment, leave the dispute statement by the consumer out of it. That does leave two types of disputes. The one where the consumer notifies the source and the source has to notate the account as disputed, which can last for months and according to Experian, as long as its on, it is unmarked. The second type is where the consumer contacts the CRA, the CRA has to resolve it in 30 days or delete it and during that time, it is again unmarked. The difference is that the first type can last for months - until the source can verify it - NOT to the CRA, but to the consumer. The second type can ONLY last for 30 days. It looks pretty clear to me, but I will email a consumer attorney on Monday and see what he has to say about this.
I have missed the point it was semantics. You don't have to notify an attorney, you are correct, and you and I are in total agreement, almost. What you call the first kind of dispute, is called validation. That is all. It is not really a dispute, you dispute with the CRA's, you validate with the source (creditors or furnishers). -Peace, Dave
Validation is with the FDCPA, I am not even talking about the FDCPA. That is another animal altogether. I am talking about the FCRA. Only the FCRA. From the FTC website: "Second, in addition to writing to the CRA, tell the creditor or other information provider in writing that you dispute an item. Again, include copies (NOT originals) of documents that support your position. Many providers specify an address for disputes. If the provider then reports the item to any CRA, it must include a notice of your dispute. In addition, if you are correct-that is, if the disputed information is not accurate-the information provider may not use it again. " http://www.ftc.gov/bcp/conline/pubs/credit/crdtdis.htm This is NOT the 100 word consumer statement that you are entitled to. This means when you dispute a reported item with the original source, they report it as disputed. What does that mean? It means that the item now is unmarked - cannot be used in scoring. Well, I am not too sure it can't be USED in scoring, but I don't think it can, I am going to go do a little research on this...
