March 19th, 2015 1:55 PM by Steven Hofberg
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
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
Mortgage Center, Inc.