When a dispute happens between a consumer and a creditor
, resolving the dispute becomes largely one sided. Creditors have the benefit of reporting your payment habits to the credit report. New lenders will decide if they will loan you money by considering all of your financial information, your credit report included.
So what happens if a lender reports something to your credit report that you dont believe to be true? This can be a nightmare. Equifax will tell you to call your creditor and your creditor will likely refuse to remove the item. Here is what you do.
Request a copy of your credit report to see whats actually on there.
Prepare an open faced letter explaining what happened to both your creditor and Equifax. Demand that Equifax compel the creditor to validate or back up the data they are improperly reporting. Explain why your creditor has made a mistake and attach proof to the letter.
Send the letter to Equifax and your creditor by registered mail.
If you receive no reply, its time to think about who regulates the reporting of consumer information. In Ontario this is the Ministry of Consumer Services.
Be informed. Go to the E-Laws website and look up the legislation that regulates how consumer information is to be reported. In Ontario this is called the Consumer Reporting Act. See if you can determine where the company or consumer reporting agency may have gone wrong.
Finally, write to the Ministry. Explain that you have a dispute with a creditor but more importantly what the consumer reporting agency is reporting on behalf of the creditor, to your credit report and seek assistance in resolving your dispute with the regulator.
You credit report is very important as is your entire financial profile. For more information about how to have and maintain a strong financial profile, please visit http://www.trueassess.com.