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SmartCredit.com Consumer Education President John Ulzheimer on an FTC report on the errors in many consumers’ credit reports and the challenges in f...
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Report out today from the Federal Trade Commission showing that ten to 21% of people have a confirmed -- at least one of their credit reports.
5% of all consumers have an -- are -- that is severe enough to cost them money by affecting their chances of getting a -- Is that the FTC's report says that the Big Three credit reporting agencies do basically -- -- to investigate consumer complaints here to break it all down for us.
Your credit.
Expert John Alzheimer that's my credit dot com great to have you back on the show.
His numbers were really startling and they're not coming from you know like some one off person doing a report in this actual FTC is saying.
They found 42 -- million people out there.
With a big mistake twenty million a mistake big enough to really cost them on.
-- -- Yet it's a little bit disturbing -- the FTC's 370.
Page report.
Actually -- had a little bit of statistics to support both sides of the argument but the -- executive summary.
Suggested that between ten and 21% had what they refer to as it confirmed to error which is different than just the consumer saying.
Hey I've got something wrong it was actually an error.
That the was verified as an error.
-- and the credit reporting agencies maintain -- -- 200 million credit files in their systems each.
So that's where the twenty to 42 million consumers -- -- comes from.
That -- is some varying degree of air and that's why you have that ranges because they had.
A short definition of air here that it -- a wearing away I mean even when we were talking about this this morning and everyone had a story it's happening in my household with a confuse you with someone else who has the same name.
But it totally different birthday it's not your credits on their.
Guinea -- resolved though.
Is nearly impossible.
I mean you calling you say this is not me and they they act like on the other and the -- writing something down -- -- things don't change so how do you do you -- Yet and and -- your rights under the fair credit reporting act are actually quite clear.
You have the right to challenge anything on the credit report did she feel is an accurate.
The obligation when you do -- is -- the credit reporting agencies must.
Perform what's refer to as a reasonable investigation now.
That's -- -- a little bit misleading investigation using Webster's definition suggests that they're out they're actually investigating.
Your claim -- one what they're really doing is they're actually going to the source of the information which is usually a financial institution.
Or collection agency and they're asking inhalant Melissa filed a dispute she says this is -- hers is she right or is she wrong and are waiting for the source of the information.
There's -- don't have our eyes and I mean is there is there any kind of limiting time horizon were they after respond also they're just going back to the person who made the mistake in the first place.
That person nine times out of ten is gonna say that's her.
I -- eight it -- it seems like.
It's the FTC is looking into this and is writing this report does spike hold out hope that they're gonna do something that this means it's reached such a big problem.
That the government might act on our behalf and and change something.
Well to answer your first question yes the federal law says the credit reporting agencies have thirty days to respond to your dispute.
I'm -- yes they are going back to the source and so it's very likely.
If the source that they got along the first time is gonna get -- -- -- second time so that's one may want generally suggest you go to the source to take your complaint up what -- The reason the FTC did this study didn't just do it for -- -- they did it because a federal law passed in 2003.
Said they had to do so this -- a nine year old rule that essentially said you'd have to performer gratify accuracy said he naturally why they did best but that the bottom line is that us.
We need the consumer have to become way more engaged with our credit reports and last we raise our hand and say look at what backs or Trans Union or Experian.
Here is an arrow my credit report.
They have no obligation -- -- you know as a new filled out this -- now wouldn't they say are we're gonna looking into -- get back to you when you're on hold the there's recording and there's reports and you're not making any headway then -- hire a lawyer I mean.
What do you do -- -- IA at the very rarely give this suggestion.
But I absolutely suggest you go old school when your disputing anything with a credit reporting agency I say you put it -- riding and -- senate using US mail.
Because -- why.
That you can you can actually free hand your dispute did not she is one of the predetermined dispute reasons that they give you on their online systems.
AM and you can also track that they have received your dispute it's not one of these he said -- he said she said types of scenarios what I can say we never received it.
Here's something else that you should do.
This CF PB whether you love -- -- -- -- rolled out a consumer credit report complaint database last year.
You can also file your complaint directly with the CF but UV and then you get that.
Yell at you are you kidding me have you did you see some of the -- they let it last year against the credit card interest rates highlight blasting the credit reporting agencies want to deal with tap the CF PB and their back pocket -- -- -- luck as a consumer you do have some pretty.
The options with -- is a good way John.
I'm writing that down I'm glad news you can use I love it that -- you next time thanks for coming -- we appreciate your time.
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