The ability for consumers to dispute information on their credit reports was created to provide the method to correct problems with our credit reports. It's a GRAND idea and very much needed in this day and age of electronic records, background checks, credit reports, currency, banking, etc. However, this system has turned into an automated fiasco with nobody - not the credit bureaus or the furnisher (creditors, collection agencies, etc) - taking the responsibility for incorrect information on credit reports.
The automated online SYSTEM has become fundamentally flawed! It uses systems such as e-OSCAR and OCR to continuously "parrot" information back and forth from the furnishers to the credit reporting agencies. In other words, the information that reported incorrectly to your credit report (that you dispute) will be confirmed...by that SAME information that was wrong to begin with!
The FCRA (Fair Credit Reporting Act) grants you the right to a "full and complete investigation at no expense to the consumer" into accounts on your credit report that you request. Because of these automated systems mentioned above, there are NO REAL INVESTIGATIONS completed. It has become an automated process of sending and receiving information between the financial institution and the credit reporting agencies. This process BARELY satisfies the FCRA regulations and FREQUENTLY violates the law and your rights.
On top of all of this, the TRUE kicker is that when it comes to online disputing, the credit reporting agencies seem to have found a method to turn their incorrectly and erroneous reporting against your credit reports into a profit center. When consumers dispute online, there is literally no interactions with HUMANS needed to complete a real investigation (even though it should be noted that that human interaction for the dispute process is almost entirely forwarded out of the country for extremely cheap labor costs). Online disputes are handled 100% by computer systems; eliminating the COST of labor to conduct the investigation. Meanwhile, the credit reporting agencies still CHARGE the data furnishers for the errors.
Filing disputes online only MAKES the credit bureaus money (don't they have enough of it by now?) AND more than likely doesn't fix ANY true problems. On top of this, it also waives your RIGHTS to know what actually happened (Dig in deeper here: http://goo.gl/TqoGZ0 ).
The lazy days of summer are here. May your favorite MLB team win it all! Don't lay down and allow the electronic world of information win it all - you matter; the consumer matters!