Credit Report Blog
Website CertifiedPrivacy Protected
Credit Report & Credit Score; Credit Repair, Debt Management > Credit Report > Actions to take in case of a bank error in credit reporting

Actions to take in case of a bank error in credit reporting

By Ruth Racey
Published: Friday, November 6th, 2009

The banking business is all about loaning or lending money to bank clients. All banks want to be paid promptly, so they make sure and report any credit items once they are found. This is one major reason for the creation of the credit report industry. It aims to help banks in making their decisions, whether to accept clients or not. Although a bank grants “secured credit” – an agreement where it attaches certain items such as a car or house to a loan deal – it is still at risk of clients who fail to keep up with promised payment. 

Banking is highly regulated business. Because of this, it is often difficult to talk or make negotiations with banks. On the other hand, it is much harder for banks to give “special treatment” to an individual because bank employees are required to treat clients uniformly or without prejudice. 

As stated earlier, bank negotiations can be bloody and tedious, except in instances where there is solid proof that banking error is present. Otherwise, it would be better seeking help from a credit bureau. However, there are also other ways for negotiation. If possible, build a relationship with someone who can help. Courteous harassment can get far, and an instance may come where it is easier for them to erase a credit record than answer appeals on the phone. Sometimes banks can also agree to clear bad credit as long as payment of past dues is made. However, they may only grant this request if proof or evidence is presented, and if there really was a problem in the bill. Tell them that maybe they were not sending the information in the correct address, or the one that was used was an old address. Having a concrete story and sticking to it will go a long way in getting a bank or credit department to understand the situation and fix the problem. 

Basic steps in negotiating with a bank 

  1. If you have paid all your loans on time, disregard approaching the bank, and instead file a basic credit bureau dispute. You may include a copy of a “restrictively endorsed” settlement letter depending on the contents of the last payment.
  2. If you still have credit, ask the bank to clear each balance upon repayment. Most of the time, banks who really want to be paid agree with this kind of deal. Include a “restrictively endorsed” settlement letter together with your check and add additional terms you settled with the bank.

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.