June 22, 2009
By Mike Wayman,
One of the most common forms of credit repair practice around is for a credit repair company to send off dispute letters to each of the tradelines on your consumer credit report that appears negative. This is a very temporary solution. Moreover, it’s a solution that won’t necessarily work in the short term.
Here’s the strategy in a nutshell: You go to a credit repair company. The credit repair company reviews your credit report and finds 12 derogatory accounts. Their strategy is to send 36 dispute letters off to Transunion, Experian and Equifax simultaneously.
Not every creditor will respond in time. Nor will every creditor respond back to all three bureaus. The real goal is to simply get a few of the items removed and make the customer happy in the short term. Long term this isn’t a strategy that works and major news outlets are catching on.
From ABC2 News:
When it comes to making those improvements, the BBB warns some scam companies may try one tactic to make it look like they’ve helped. They’ll do a blanket dispute for every blemish on your credit report, so those items will come off. But the solution is only temporary according to Barnett, “It’s lifted for 30 days. But on day 31, it’s back on there if it is a valid blemish on your credit report.”
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I always thought that these dispute letters were useless