Aliens control our American credit bureaus. Not the tall green ones with sweet eyes, but individuals from other countries as far away as Chile. Last Sunday, 60 minutes broadcast an exposé on the three credit bureaus, TransUnion, Equifax, and Experian. Although I work with credit agencies every day, I was shocked (yes, shocked) at the information provided.
Credit Scores dictate our financial lives. Fannie Mae, Freddie Mac and FHA implemented guidelines to decline mortgages with scores deemed too low. Banks will ratchet up the interest rate for your home or car if your credit score is a lousy 730 or below. Remember when 680 was considered a good score? That is so 2010. One of our clients refused to pay a cell bill in 2007 for an $82.00 incorrect charge. Last month a collection company slapped a collection on his report. His 800 credit scored dropped to a 686. Get this, if he pays the erroneous charge, it will not improve his credit.
Disputing a credit line on a credit report could suspend your application for a mortgage until it is resolved. When a dispute is placed on your credit, the creditor in question is eradicated from your scores. Therefore the lender could demand verification the dispute is removed and require a new updated credit report with new scores.
Back to 60 minutes, as reported by Steve Kroft, credit disputes are handled by call centers outside of the United States. How in the world would a 19 year old in another country know how to address an incorrectly placed foreclosure? Just asking, but where is our nosy government when we need them?
You could only wish it was science fiction.