Up To 30% Of Credit File History Can Be Wrong!
According to a 2013 report the Information Commissioner found that almost a third of people's credit file information was incorrect.
As you'll see in the following video compiled by the ABC's 7:30 Report, the major credit reporting agencies can not only make serious mistakes with your credit file data, but are also very slow to address complaints regarding faulty data on credit file history.
We can remove incorrect entries from your credit file.
In most cases where poor credit file information is an issue, we can do this very quickly.
If you are having difficulties with incorrect data on your credit report history, call us today on (02) 8677 7299
Author: Mary Trimarchi
Faulty Reports: The Mistakes, and How They Affect You
Having a healthy line of credit is crucial in today's scenario of high prices where few financial decisions of import can be taken by simply paying for them upfront. It has become increasingly difficult to lead a regular lifestyle without having access to credit. Despite the obvious necessity of credit, most consumers remain uninformed of the complex system of information exchange that takes place to determine their ability to get good credit. This is known as the credit reporting system and is undertaken by banks and credit reporting firms, mostly without the knowledge of the consumers themselves. Several consumer assistance agencies and financial counselling services have received frequent grievances from consumers who were adversely impacted by the credit reporting system, and who believed they were treated unfairly by a system they had little understanding of.
The Australasian Retail Credit Association (ARCA) is one of the major groupings of credit providers and includes credit unions, banks, and telecommunications firms. Its main objective is to improve the quality, supply, definition, and consistency of data in credit reporting systems through various mechanisms in order to get accurate credit reporting histories of consumers. To do so, it enlisted the help of credit providers operating in the country.
One of the obvious problems in doing so was the enormous discrepancy in the listing practices among credit providers. While some providers listed on established timelines of 90 days, others did so at 180 days, and still others simply would not list in the hope that they could still get the customer's account back on track. Many credit providers did not list where a hardship arrangement was in force, whereas others said that they had used the current system to imply that such a scheme was in place. A few credit providers also said that debts were to be recognized as "hardship cases" and placed under a unique section that accounted for frozen interest and no listings as long as the consumer was engaged in the repayment of the debt.
Defaults listed before an arrangement typically remained in place despite the arrangement being struck at a later date. One credit provider also indicated that all the debts were outsourced at the listing stage simply because the credit provider did not have the bandwidth to process the updates for the credit file once the payment was made. According to one credit provider, a serious credit infringement, or a "skip" would be recorded if the customer failed to respond for 90 days. It would be changed to "skip located" if the customer eventually made contact, but would not otherwise be removed or downgraded. Another credit provider also said that whenever they needed to re-process an application for various reasons, they would tell the credit reporting agency to ensure that only a single enquiry appears on the report, reasoning that both are related to the launch of the same account.
These are just a few of the ways in which credit reporting history can go awry. The information provided has been from the credit providers' themselves, and is therefore above reproach. While the ways in which credit reporting can go faulty are certainly complicated, it pays to be aware of the kind of problems that take place in order to find a viable recourse for them.