Consumers have the right to request the method of verification of a credit dispute when they believe the credit bureaus did not properly investigate.
Unfortunately, the method of handling credit disputes is similar among the three major credit bureaus (Experian, Equifax and Transunion). An online computer program for the re-investigation process called e-Oscar is the way most credit disputes are processed.
The e-Oscar method of investigation has automated the credit bureaus’ entire system. Every credit dispute received by them: written; online; or telephonically; is reduced to a three-digit code, even if you submit a written dispute with supporting documentation.
That three-digit code is then sent to furnisher of information to verify as accurate or not accurate. That’s it. No real investigation is conducted in most cases. Take a look at the e-Oscar codes.
According to the FCRA, credit bureaus are required to forward dispute information along with any proof submitted by the consumer to the furnisher of information (original creditor). But due to the automated e-Oscar system, often times the only thing that’s investigated is that three-digit code.
That’s why it’s important to use every legal right afforded to consumers. The FCRA says consumers have the right to know the credit bureau’s method of verification for verified disputes.
How the Method of Verification Works
If you get a response to your dispute from the credit bureau saying the disputed item was “verified” you have the right to request the “method of verification” under the FCRA, Section 611 (a)(6) and (7).
The credit bureau must give you the method of verification information within 15 days of your request.
The method of verification is a powerful tool against the credit bureaus. You may have to threaten to sue or even actually sue them if they refuse to sufficiently comply with your request for the method of verification. But don’t worry, the Fair Credit Reporting Act (FRCA) laws are on your side.
Assuming you’ve already mailed your dispute and it came back verified, follow these steps to request the method of verification.
Step 1: Put your request for method of verification in writing.
It’s very likely the credit bureau did not contact the original creditor at all. The third-party database, e-Oscar, may have been used to verify the disputed item, which is insufficient.
Request the credit bureaus provide relevant documentation that shows clear evidence they investigated your credit dispute. You want sufficient proof FCRA procedures were followed and proper steps taken to verify the dispute as accurate.
It’s questionable how much real human effort is actually applied during the course of their investigations.
Step 2: Sample method of verification letter
Send U.S. Mail Certified, Return Receipt
(Date)
(Credit Bureau Name)
(Credit Bureau Address)
RE: Method of Verification Request
To Whom It May Concern:
This letter is in response to your recent claim that [insert name of creditor, collection agency, or court] verified the account they are reporting is accurate.
Please be advised that I am exercising my rights under FCRA 611(a)(6)(B(iii) which provides that a consumer may request “a description of the procedure used to determine the accuracy and completeness of the information shall be provided to the consumer by the agency, including the business name and address of any furnisher of information contacted in connection with such information and the telephone number of such furnisher, if reasonably available.”
In compliance with this method of investigation request, please provide the following:
- The description of the procedure used to determine the accuracy and completeness of the information.
- Name, address, and telephone number of each person contacted regarding this alleged account.
- A copy of any documents provided bearing my signature, showing that I have a legally binding contractual obligation to pay them the exact amount claimed.
Any automated response or e-Oscar verification is unacceptable. I am requesting a re-investigation along with your method of verification.
The item in question is inaccurate and represents a very serious reporting error.
I expect to receive a response within 15 days of receipt of this letter in compliance with the FCRA. If not, I expect this item will be removed from my credit files immediately.
Thank you for your prompt attention to this matter. I look forward to resolving this matter as soon as possible.
Regards,
(Your Full Name – printed or typed)
(Social security number)
(Address)
Step 3: Wait 15 days for response from credit bureaus
FCRA 611(a)(7) provides:
“A consumer reporting agency shall provide to a consumer a description referred to in paragraph (6)(B)(iii) by not later than 15 days after receiving a request from the consumer for that description.”
Step 4: What to do if credit bureau does not comply
If they do not respond, they are in violation of the FCRA and you can sue or just threaten to sue and see if you can get the negative listing deleted.
But before you pursue legal action make a complaint with the Consumer Financial Protection Bureau requesting the item be deleted based on the credit bureau’s lack of compliance with the method of verification. You can also make the same type of complaints with your state’s Attorney General’s Office along with the Better Business Bureau. You want to put as much pressure on the credit bureau as possible before pursuing legal action..
If the disputed item remains, it’s time to get tough with the credit bureau. Send an Intent to Sue Letter, certified letter, return receipt and give them 10 days. After the 10 days file your lawsuit in small claims court or contact a consumer law attorney. NACA has a nationwide database of consumer law attorneys, very familiar with handling FCRA violations.
15 Comments. Leave new
hi Lisa, I love the time and expertise you lend on here to so many consumers. It’s invaluable. I actually work in the financial industry and have done alot of work repairing my own credit as well as many of my clients. Im also familiar with the section of the FCRA that pertains to the ‘method of verification’ and its so upsetting that even when the CRA’s receive this specific section of the FCRA, they still violate the law. Unfortunately, I’ve seen that the average consumer generally wont pursue legal action either because they dont think they can win OR its just too time consuming for them, which I understand. I’m just curious, have you any reported testimonials of people succeeding with the CRA’s in getting items removed using the ‘method of verification’?? I’m sure many of your readers would love to hear about that. Thanks again for great information.
Hey Lisa! After the first and second rounds of letters sent to CRAs requesting MOV, I filed a complaint with the CFPB with all three CRAs, and in exactly 1 week, 2 of the three responded and the complaints were closed. The responses were basically the same, saying that they received disputes and, after re investigation, the disputed accounts were verified. TU even said they are not required to disclose verification information provided by creditors. Did I do this out of sequence? What should my next steps be? Third round? Please help! Thanks!
Once you exhaust all avenues of resolutions such as complaints with the Consumer Financial Protection Bureau, your state attorney general and even the Better Business Bureau, a civil action regarding the reasonableness of the investigation may be your only option.
Of course you can send another round of letters but you run the risk of having the dispute labeled “frivolous.”
Sometimes credit bureaus only respond when court actions are involved. I suggest you consult with a consumer law attorney that is familiar with FCRA rules and procedures. It’s really bold of Transunion to flout the law like that and think they can get away with it. At the very least, the MOV requires credit bureaus to identify the parties to whom they sent copies of the dispute.
I want to file a report with the CFPB but I wanted to know what I needed to file. My dispute letters with errors and the response from the credit bureaus? Also do I list the account on the wesite
The CFPB complaint process requires that you explain the issue. That means you tell them exactly what you are disputing, for example: Experian failed to provide method of verification for (account name/number) as requested on (date). I believe this account should be deleted because (whatever reason you stated in your original dispute letter to the credit bureau). Then you state the resolution you desire, for example: The account name/number should be deleted from my credit reports as resolution to this matter.
I filed a complaint with the Consumer Financial Protection Bureau on Equifax on some accounts and it came back verified and I have frozen all the other bureaus they will not delete anything but they did not send proof of how they verified. What can i do the other two bureaus have deleted items please help.
I suggest you request the method of verification as discussed in the above article. This sets the ball in motion in the event you have to pursue legal action against Equifax. If you’ve already requested the method of verification then the only actions left to take are to make complaints to your state’s Attorney General and the Better Business Bureau. The final action would be to pursue legal action.
I’m new at this.When in disputing your credit file and it comes back verified, who will I call to challenge the credit bureau Ex, Trans,Equi or the people who reported the information to the credit bureaus.
There are several options here. You can follow the steps above to request the method of investigation. Another option would be to submit a complaint to the Consumer Financial Protection Bureau regarding why you think the negative item should not have been verified as accurate. You can also dispute the negative item directly with the creditor under the Direct Dispute Rule.
Hello! I called Experian and they told me that they verified a BK on my report with the courts. I just spoke with someone from the courts who said absoluelty they do NOT verify anything. She said the credit bureaus come into the bk courts, sit at thier computers and they take the information. Do I have a case to fight the bureaus based on this? The lady from the courts said they will not send me a letter in writing stating that because they have whats called a bk search on thier website that i could apply for and pay $31 and they send it to me. The problem is that im still at square one because they will have a record of a bk with my name on it so i wouldnt be able to send that the the credit agencies. My concern is that fact that they told me they verified with the courts but the courts said they dont verify, instead the bureaus come use thier computers and take the information. What can i do if anything? I really want to fight to get this off of my report.
Bankruptcy removal is covered more extensively in the article: How to remove a bankruptcy from credit reports
I asked them how they verified and they stated it was a 3rd party verification but would not give me the name of the 3rd party. I asked her several times and she said she did not have to give me the name of the 3rd party they verified my bk with. Is this legal? Where do I go from here ?
It’s time to make complaints with the Consumer Financial Protection Bureau, your State’s Attorneys General Office, the FTC and the Better Business Bureau.
In your complaint state that the credit bureaus refused to provide you their MOV (Method of Verification) for the Bankruptcy listed on your credit report according to FCRA 611(a)(6)(B)(iii) which states: “if requested by the consumer, a description of the procedure used to determine the accuracy and completeness of the information shall be provided to the consumer by the agency, including the business name and address of any furnisher of the information contacted in connection with such information, and the telephone number of such furnisher, if reasonably available.”
FCRA 611(a)(7), which is used for such a request, states: “A consumer reporting agency shall provide to a consumer a description referred to in paragraph (6)(B)(iii) by not later than 15 days after receiving a request from the consumer for that description.”
I would start with the Consumer Financial Protection Bureau first, they are pretty efficient at getting the credit bureaus to respond with a resolution.
When requesting their MOV, do I need to send the letter I received from the courts saying they do not verify anything?
Yes, if the credit bureau stated they contacted the courts to verify a public record, then send them a copy of the letter from the courts stating they do not verify records with the credit bureaus.