Mortgage News and Notes

Credit Reporting Giants Agree to Overhaul

March 19th, 2015 1:55 PM by Steven Hofberg

Dear Friends:

Some positive news from the credit reporting giants (Equifax, Experian and TransUnion) on how they will handle your credit record in the future, courtesy of the Attorney General of the State of New York.

Under an agreement announced last week with New York state, the three credit bureaus agreed to be more proactive in resolving disputes over information contained in credit reports.  Many regulators and consumer advocates have long argued that the credit report dispute resolution process is heavily stacked against consumers.

Pursuant to the new rules established by the agreement with the AG, the credit reporting firms will be required to use trained employees to review the documentation consumers submit when they believe there is an error in their credit file.  Previously, if the creditor responded to the dispute by declaring that the debt information is correct, the credit bureau would close the matter and side with the creditor.  Now, an employee of the credit bureau must look into the matter and resolve the dispute, not just take the word of the creditor.

Unpaid medical bills, a very common type of debt, will also be treated differently under the new agreement.  Credit bureaus will have to wait 180 days before adding any medical debt information to a consumer’s credit report.  The idea is to give consumers a grace period to clear up insurance discrepancies and catch up with any unpaid bills.  When medical debts are paid by an insurance company, they will have to be removed from a credit report soon after payment, as opposed to most delinquencies, which stay on credit reports for up to seven years.

Have a great week!


Steven H Hofberg

Operations Manager

Residential Mortgage Center, Inc.

Company NMLS #183787
Posted in:Credit Scores
Posted by Steven Hofberg on March 19th, 2015 1:55 PM


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