Credit Bureaus to Forward Dispute Documents to Creditors

Reporter Kelly Dilworth of CreditCards.com has posted an excellent report on a new development in the credit dispute process. For the first time, beginning later this year, TransUnion, Experian and Equifax will begin scanning every document that you mail in, including the full text of your dispute letter, and electronically transmit the documents to lenders and other data furnishers.

Heretofore, all the credit bureaus sent to the creditors was a two or three digit code and a few comments. For example, if a consumer states the account does not belong to him or her, the dispute would be reduced to a code omitting any facts provided by the consumer. Such truncated information was often of little use to the creditor in determining whether its credit reporting was accurate.

The system used by the bureaus and creditors known as e-OSCAR currently is not even set up to accept documents.

Even if lenders aren’t enthusiastic about the new technology, they won’t have a choice about using the system. “When the system goes live, the lender is obligated to click on the link and look at the document,” according to an industry spokesperson.