January 18th, 2018 1:22 PM by Bilal Green
bureau disputes no longer work for recent late payment:
The old 30 day credit bureau dispute method no longer works for
recent late payments, because the credit bureaus have switched to automatic
dispute verifications where all the bureaus do is correspond to the creditor
via their data exchange interface known as E-Oscar (http://www.e-oscar.org/about-e-oscar.aspx).
Hence unlike the older days are no phone calls or written communication that is
exchanged, this interface verifies millions of accounts that are disputed every
month by consumers in quick fashion. I have dealt with numerous creditors over
the years and have enjoyed a high success rate in removing such late payments. So
let me explain what I’ve discovered over the years.
Way to Remove a 30-60 Day Late Payment
Step 1: Calling the Creditor’s Special Credit Bureau
The only way to remove the recent late payment from the credit
report is by getting the original creditor to agree to remove the late payment.
The simple first step is to call the creditor and see if they have a special
department that handles their credit bureau reporting. Once you are transferred
to them, ask for a goodwill removal of the late payment form the credit report.
If they agree, then ask them to send you a letter they are removing the late
payment from the credit report. Make sure to assert that you want the late
payment removed from the credit report and that you are not referring to the
late payment penalty fee that may have incurred.
Normally if the creditor agrees to remove the late payment they
will themselves update the account history on the credit report. The likes of
Bank of America, Chase and Wells Fargo often update accounts within a couple of
weeks. However, in the majority of such cases creditors do not removal late
payments and claim that they are not authorized to remove a late payment unless
it was erroneously reported, in which case we move to step 2.
Step 2 : Making the Case with the creditor’s higher
If the first call has not worked, then that means you are in for
the long haul to deal with the creditor. The next phase here would be to either
engage the creditor’s higher management or their credit bureau department.
However, you will need to make a solid case with the management and document
The case you would need to make here is that although the
payment was late, it was not due to your inability to make the payment, but
instead was due to you not being aware of it being due.
For instance, if the late payment incurred due to the fact that
you were out of town, it would be advisable to provide the creditor with proof
of your travels and as well evidence that you had sufficient funds in your bank
account to make the payment that was due. In spite of this creditors often can
brush aside such requests and stick to their position that the late payments.
Chase and Bank of America in particular are very stringent when it comes to
removing late payments.
Step 3: Lodging Complaints Against the Card Companies:
At this stage, you can get the different regulatory agencies
involved like the Consumer Financial Protection Bureau (http://www.consumerfinance.gov/) and
lodge a complaint against the creditor. The complaint cannot be made under the
premise that the creditor acted illegally and violated your rights under the
FCRA, however you can make the argument that despite the reasonable case that
you’ve made, the creditor is acting “unreasonably.” The CFPB (Consumer
Financial Protection Bureau) will investigate your complaint and forward it to
the creditor for a response. Since the CFPB tracks complaints against
creditors, the creditors are motivated to resolve all complaints.
Normally you can expect a response from the creditors within 15
days and if the creditor does not respond favorably, the CFPB allows you the
option to dispute the creditors response. If the creditor agrees to remove the
late payment, they will forward you confirming through the CFPB website that
they are doing so. Hence, the CFPB has provided consumers with an effective
tool in dealing with such issues.