The In-effective Credit Dispute Method

by: MattDouglas
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Word Count: 477

Credit bureaus respond to consumer credit disputes via mail. They will either delete or verify the information. If the item is verified, it means the bureau is keeping that information on your credit file.

Credit bureaus always respond to disputes with a letter where they inform you that you have the right to attach a 100-word statement to your report. Often, people believe this is a good opportunity to explain away their negative information or argue their case.

It may be difficult to resist the urge to proclaim your innocence by way of a consumer statement. You may feel the need to explain that the bad credit simply was not your fault or beyond your control.

Be cautious about adding a consumer statement to your credit file.

It may look like the credit bureaus are doing you a favor by adding your consumer statement. However, it is really just another technique the credit bureaus use against you.

Here is a common consumer statement: "The late payments you see on my credit file were not my fault. My employer fired me due to no fault of my own. I quickly found a new job and now pay my bills on time every single month."

The unexpected loss of employment may sound like a reasonable explanation to be late once or twice on a credit card bill. Plus, I would give that person credit for catching up on her bills and staying current since the bad financial spell.

Credit bureaus interpret a late payment one way. They interpret it as an indication of a bad credit risk.

Her inability to make payments is seen as a sign of weakness and/or irresponsibility. They believe that she should have emergency money to pay bills during times of emergency.

Writing a 100-word statement can damage your credit for three more reasons. First, such a statement only cements the fact that you paid your bill late. Second, the credit bureaus already have confirmation that the late payments are accurate. Thus, should you dispute the items in the future, the credit bureaus will ignore that dispute or deem it "frivolous." Third, any future creditor will expect you not to pay them should you run into another financial emergency. As you can see, there is no benefit to the consumer when they attach the consumer statement. In fact, the purpose of the statement is so old and out-dated that it probably should be simply abolished. It was part of the original Fair Credit Reporting Act enacted by Congress in the 1970's. The statement has no purpose nowadays since most credit applications are reviewed electronically.

If a creditor does not read your statement, then nobody will. Most applications are reviewed digitally and so the 100-word statement serves no purpose other than a weapon credit bureaus use against you.

Briefly, the 100-word statement is dangerous to your credit file. It serves no good purpose for the consumer whatsoever.

About the Author

Looking for quick and effective credit repair? Discover the secrets to deleting charge offs, judgments, collections, late payments, and improving your credit score. Plus, get a free credit dispute letter you can use to erase negative items.  

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