If the Credit Bureaus Had Teeth Would You Swim with Them?

Credit bureau's Trans Union, Equifax and Experian are like hungry carnivorous fish and the average consumer has been swimming in their feeding pool long enough. Like hungry sharks they will continue to nibble at your financial profile until there is nothing left to feed on, unless the intelligent consumer becomes proactive with the information contained in their reports.

It as been my experience in counseling a consumer's credit reports that every one has errors of some kind or another. Every single one of them. Yet the average consumer doesn't know, care, or know what to do about it. What exactly ARE the credit bureaus and what can be done to hold their feet to the fire and be assured that they are reporting correct, complete and accurate information?

First and foremost, the consumer needs to know everything they can about credit reporting agencies. They are not a branch of any form of government agency. They are actually a product of the banking industry. The concept of a consumer credit report is a good one but the industry is in dire need of reform. A credit report was never intended to be used when applying for a job for instance. In addition, the information contained in a person's credit report does not portray an accurate portrayal of ones credit worthiness. It is misleading, false and inaccurate. Each agency has differing information about consumers on their records, often resulting in inaccurate or out-of-date information.

A consumer can jump through the usual hoops in their attempts to set the record straight by demanding validation of the debt and the CRA has to provide this proof in a timely manner but I don't really think it should fall on the back of consumers to ensure some company isn't trashing them. Nor do I think a consumer should pay for a monitoring service. I think the best way a consumer can fight back is by legal action against the credit reporting agencies.

Trying to deal with a CRA can be quite challenging. Imagine the most impersonal, faceless bureaucracy ever -- impossible to contact, requiring you to navigate through a labyrinth of scams, false promises, and outright lies.

You can call a CRA via their toll-free number, but they are only open between 9 am and 5 pm in your time zone, thus requiring you to call them while you're at work, on your lunch break, or force you to take time off to deal with them. You can write them at their public address, but responses can take up to 30 days, not an option if you have an urgent collection notice on your desk.

Consumers also have the option of contacting them through their web site where you may end up getting redirected to a "nested" subsidiary site like True Credit or Credit Expert. They look and sound like the right site, but you may get conned into ordering your credit report for astoundingly expensive fees, and then be unable to dispute any records or get any assistance.

Equifax is the only CRA to offer a direct connection to its site, but in order to get instant customer assistance, you must buy one of their credit reports to gain access to their member site which includes a toll-free 24-7 customer service "hotline".

You will have to keep a cool head and know all your facts when dealing with CRA customer service representatives. They are generally reading from a script and told what they can and cannot answer, and often try to steer you to buy their consumer products in order to answer your questions.

They are certainly not on your side and do not have your best interests in mind. Know that in your dealings with them.