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U R @: Education Center : Credit Reports : My Credit Dispute Nightmare
MY CREDIT DISPUTE NIGHTMARE
Fixing errors on your credit report is not always the easiest thing to do. In fact, it can be a long, frustrating task. I've had to dispute credit report errors three times. Two of the times were smooth, although they still took close to two months. The third was a credit report nightmare.
The item I was disputing arose out of a medical billing error. I had gone to an emergency room I'd visited before. They had all of my insurance information on file. And they verified all the information with me during the visit.
Three months later, I recieved a collection notice in the mail. The hospital was trying to bill me $350. I contacted the hospital. They were no help. Then I contacted the billing company. They referred me to the collection agency. All the collection agency wanted to do was intimidate me into giving them money. I just threw the bill away and ignored it.
A year later, I ordered a 3 in 1 credit report. On my Transunion report, I found a collection alert for the hospital charge. I called Transunion and disputed my case over the phone. A month later I got a letter stating my request had been denied.
Frustrated, I tried to correct the problem online using an online dispute form. Well, half way through typing my dispute, I reached the very short 250 word limit for the form. I rewrote the complaint and submitted it again. Same response.
Finally, I tried to contact the hospital billing company again. This time a very understanding representative changed the status of my bill to dismissed. I requested another free credit report and found that the status of the item in dispute showed a $0 balance. However, it still was listed as a collection account.
I called Transunion again. I told them to look at my report, note the fact that the amount due was now zero, and remove the collection from my credit report. A month later, I got a letter stating that the report was accurate. I disputed the charge again. Same result.
Finally, I gave up. The effect this issue with Transunion had on my credit was profound. It made my Transunion credit score 50 points lower than my other credit scores. It caused me to get higher interest rates on credit cards. It stuck with me for 7 years. In fact, it won't be gone until early 2008.
Given the rough experience I had, the advice I have for others is very simple: resolve any collection issue before it gets to collection. Call the bank or lender directly and negotiate payments before a collection agency is involved. If the matter gets all the way to a collection agency, and it is an error, work with the collection agency to get the collection item removed from your credit report. Because they only get paid when you pay your bill, many will remove the disputed item in exchange for payment.
The most important thing, however, is to be diligent when you are disputing an item. Persistence is key. Call, call, call and then call again before giving up. The effort will ultimately pay off by getting you lower interest rates on everything from your credit cards to your house.
To stay on top of your credit report status, monitor your credit report with a service such as Experian Triple Advantage. You can get a free 30 day trial if you sign up and give your credit card info. If you cancel before 30 days, you will not be charged.
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