Lender’s Personal Experience With Credit Report Errors

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This is a story reported last year but it could easily be reported any day in any city in the country.

AS THE DIRECTOR of finance at a Brooksville, Fla., auto dealership, Marvin Hendrick, 52, reviews consumer credit reports on a daily basis to determine his customers’ auto loan rates. So it was a sore day back in 2004 when, amid scores of 0% APR financing promotions, he had to grant himself a car loan at a whopping 13.74%.

He didn’t have a choice. Because of a serious mistake in his credit report, Hendrick’s credit score was 445 out of a possible 850: a score low enough that most lenders would refuse to grant him any credit at all. “I had to pull strings with the banks I’m associated with to get myself a car loan,” he explains.

The entire post is interesting but the concluding paragraphs show the problems when there are errors on your credit report –

This is little consolation 33-year-old Samantha Murphy of Blackwood, N.J., who is suing Experian for reporting six negative accounts that are not hers. When American Express pulled her report in a routine account review, they decided to cut her credit limits in half, bringing her to 100% of credit utilization on one of her AmEx cards. When the change is reported to the bureaus, her credit score will drop and likely cause her other creditors to hike their interest rates. With a seven-week-old baby, that’s the last thing Murphy needs. And although she sent the court documents to American Express, along with copies of her Equifax and TransUnion reports that show no fraudulent accounts, “[AmEx] said they were going with Experian and ‘to us, that’s the true stuff,'” Murphy says. (American Express does not comment on individual cases, but a company spokeswoman confirmed: “Once a cardmember works with the bureau to correct any inaccuracies and we receive a corrected version, we are able to re-evaluate any decisions that may have been impacted by erroneous information.”)

As someone who grants consumer credit, Hendrick grudgingly agrees. “In the credit reporting world, if it’s on your credit report and it’s bad, you’re guilty until you prove yourself innocent,” he says. “I know it because I deal with it every day, and I give credit to people based on their credit file. And to me, if it’s in there, it’s the truth.”

The solution is to pull your credit reports to find out what is on them and dispute the inaccuarate items as soon as possible.

Another resource for you is to join our Facebook Fan Page – Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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