Status Date Reporting Problem:
Date: Tue, 04/26/2005 - 06:01
I know this is more of a post of ramblings, but I had the fortune to run into a post on another board confirming a fear of mine concerning the new format that the credit reporting agencies are using.
They have replaced, last activity date with status date, which should be the last status on the account, but it is being changed by the credit reporting agency or the creditor not sure which yet, but it is getting updated when ever accounts are being verified.
The problem with this, is that the date is attached to the credit scoring... so example would be if you where disputing a paid collection from 3 years ago, and it gets verified or updated. Well they are changing that status date to reflect recent activity. What that is doing, is making the derogatory information look as if it just happened recently and pulling it back forward to hit the credit scoring... collection accounts can hurt the score as much as 50 points give or take.. so if you have a good many disputes on old accounts, you could be hurting your score by that much multiplied by 20-50 points...
I consider this to be grossly abusive and unfair, this should not be allowed, we have had a few members here already mention to me about this occurrence, and one that I know of already to contact the FTC to file complaint and go through their new dispute referral program...
What I am asking is that anyone disputing and running into this exact problem, to please do the same thing and contact the FTC to file a complaint and use the dispute referral system they have.
Would be good idea when pulling credit reports is to access credit scoring before disputes, keep a copy of that credit report and the score... then if you see the results come back and you pulled another credit report with scoring... use both reports. Send copies of the documented proof to the FTC so they can see exactly what is going on.
I know that is costly, but it is likely the only way to catch them at this - it does not have to be FICO scores either, just regular scores direct from the credit reporting agencies. I know this is going to be like looking for a needle in the haystack, but it will be crucial in pulling the FTC in to help on this serious problem.
This is a major set back and abusive practice the credit reporting agencies are engaged in, and it needs to be stopped. Weather they did this on purpose or not, they need to be forced to amend this problem.
They have replaced, last activity date with status date, which should be the last status on the account, but it is being changed by the credit reporting agency or the creditor not sure which yet, but it is getting updated when ever accounts are being verified.
The problem with this, is that the date is attached to the credit scoring... so example would be if you where disputing a paid collection from 3 years ago, and it gets verified or updated. Well they are changing that status date to reflect recent activity. What that is doing, is making the derogatory information look as if it just happened recently and pulling it back forward to hit the credit scoring... collection accounts can hurt the score as much as 50 points give or take.. so if you have a good many disputes on old accounts, you could be hurting your score by that much multiplied by 20-50 points...
I consider this to be grossly abusive and unfair, this should not be allowed, we have had a few members here already mention to me about this occurrence, and one that I know of already to contact the FTC to file complaint and go through their new dispute referral program...
What I am asking is that anyone disputing and running into this exact problem, to please do the same thing and contact the FTC to file a complaint and use the dispute referral system they have.
Would be good idea when pulling credit reports is to access credit scoring before disputes, keep a copy of that credit report and the score... then if you see the results come back and you pulled another credit report with scoring... use both reports. Send copies of the documented proof to the FTC so they can see exactly what is going on.
I know that is costly, but it is likely the only way to catch them at this - it does not have to be FICO scores either, just regular scores direct from the credit reporting agencies. I know this is going to be like looking for a needle in the haystack, but it will be crucial in pulling the FTC in to help on this serious problem.
This is a major set back and abusive practice the credit reporting agencies are engaged in, and it needs to be stopped. Weather they did this on purpose or not, they need to be forced to amend this problem.
Yeah unfair act
Quote:
but it is getting updated when ever accounts are being verified. |
It will reduce the scores significantly.
