Are you aware that there are credit restoration companies that can dispute directly with creditors, not just the credit bureaus? Does this make a difference? Starting July 1st, 2010 the new FTC law requires original creditors to respond to disputes.
When you write the Original Creditor (OC) to dispute a listing, you are asking for an"investigation", not a verification. Under the laws, the OC are not required to verify an account. Most people are unaware of some of the most powerful tools for credit repair. A big one is the ability to dispute negative listings with the information furnisher, typically the OC. An information furnisher is any entity reporting information to the credit bureaus about you.
What's the big deal? Most people think the OC would have great records. That is not always the case. There are a few OC's that keep decent records, but most credit card companies only keep records for 13-18 months. and if that is the case, and if you have lates on your credit report prior to this period, they won't be able to prove you were late. And by law, they would need to remove the negative information if they can't prove it.
In recent years there have been many bank consolidations. Many credit card companies and mortgage companies have not done a good job in keeping their acquisition records in the best of shape. Apparently it costs a lot of money to import data from one system to an other and some companies have not spent the money.
Sometimes OC's continue to report lates although they do not have specific recoreds of the lates or the people they are reporting on. This is illegal! This can impare your chances of obtaining a new home loan or any other type of credit.
The FACTA legislation which passed recently, allows the consumer to go directly to the original creditor (information furnisher) to dispute. However, before disputing with the original creditor, the consumer must have disputed with the credit bureaus first.
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