Correcting the mistake was an interstate nightmare that took the full-time attention of Howe's daughter in California. She sent letters, faxes, notarized explanations, long distance phone calls, but for months, she kept running into the same brick wall.
Howe's daughter, Julie Kerr, says everyone knew Howe was alive, but the bank wouldn't budge without a credit report from Experian.
"(They said) 'We don't care, we have to get a credit score and without that credit score, we can't make the loan and we can't get a credit score because you're deceased. Now we know you're not deceased, but they think you are. So we're not going to do this loan,'" Kerr said.
This woman's story eventually had a happy ending, as she managed to convince Experian that she remains alive, but her story serves as a reminder to check your free annual credit report from all three major bureaus regularly—and to watch them closely after major life events such as marriage, divorce, or death of a relative or spouse.
Woman denied credit, told she's dead [KOMO] (Thanks, Chuck!)
RELATED:
How Credit Bureaus Correct, Or Fail To Correct, Errors On Your Report
Really, Credit Bureaus, I'm Not Dead
(Photo: DominusVobiscum)
]]>@FDCPAGuy:
I think that was a joke.
Well, it happens precisely as often as people stop making payments. According to this, about 1.8 million in 2008, and it's going up:
[www.allbusiness.com]
• If a bankruptcy was filed within the 48-month period prior to the credit report date, the loan will receive a Refer with Caution/IV and will be ineligible for delivery to Fannie Mae.
]]>This madness needs to stop. They need to be held accountable for the information which THEY assert is authoritative and/or release the result and contacts of EVERYONE involved in the "investigation" - i.e. who reported them dead (name, business, address, phone number) so that if you aren't allowed to sue for libel the credit agency, you can go to the person that's pumping the information into them.
Since a negative credit report does cause monetary and other real damages, the people that report to then need to be held responsible for their actions or the item go away.
]]>@brandmuffin: You are the one who is right, it is in fact, two years.
]]>@FDCPAGuy:
Sure, the personal statements about payments made might not hold any weight, but an I AM NOT DEAD statement should probably raise some eyebrows.
]]>The FICO score is an "I Love Debt" score! Show them you can pay it with what you are doing now, not what has happened in the past!
]]>The consumer credit report does not contain this information once it's obsolete and the FNMA underwriting engine does not read things unless they are on the consumer credit report.
]]>@bones11:
Sure, they have a legal obligation to "research" it, but from my experience, they don't do anything and say they researched it. I had a student loan showing on my report saying that it was past due and that I agreed to a "payment plan". I was a full time student in deferment, the loan was never past due (I always made payments), and there was no "new payment plan". I contacted the credit agency, they said they would do an investigation and two days later I got a letter saying the investigation was over, they found nothing wrong, and that the report would not be corrected. What the hell kind of investigation can they perform and still get me a letter in 2 days saying the investigation is completed? So, I told them to investigate it again, only this time, they should do an actual investigation. Two days later I get another letter saying everything is correct and no changes will be made. So, I wrote up a letter for the school, the loan servicer, and the credit agency, with all supporting documentation, showing how they screwed up, there was never any late payments, there was never any different payment plan, the fact that I was in deferment, and the fact that this all occurred when the school gave over loan servicing to a loan serviving company instead of doing it themselves. I told them if it wasn't corrected I would sue. Sure enough, a day later I get a call from the school and the loan servicer that they are going to get it all corrected, and finally it was cleared up, and they added a personal statement from me in my report saying how the screw up was in my report and it was not my fault.
My advice, don't trust the investigation, give them all the information needed to get them to decide in your favor, and hound them until they do.
]]>How is it that one agency thinks you are dead and the other two don't? And can't the woman add a personal note to the report saying - I AM NOT DEAD!?
]]>Most loans are made based on the middle of your 3 scores. If you only have 2 scores the lower is used. If you dont qualify based on score you dont qualify.
]]>@bones11: Wow my bosses at FNMA said with newly established credit lines I can approve FNMA loans to borrowers 2 yrs after the discharge of thier BK. Thats much earlier then waiting 10 yrs (lets get this straight shall we BKs and foreclosures will appear till the day you die but they can only be a credit scoring factor for 10yrs.)
]]>"Reported as deceased" is a valid explanation. She could then proceed to sue whichever institution erroneously reported her as deceased or attempt to sue the credit bureaus. Both of those options could take many years.
]]>IV. You Also Have The Right To...
Know why your application was rejected. The creditor must tell you the specific reason for the rejection or that you are entitled to learn the reason if you ask within 60 days. An acceptable reason might be: "your income was too low" or "you haven't been employed long enough." An unacceptable reason might be "you didn't meet our minimum standards." That information isn't specific enough
You didn't generate a credit score is not a specific reason, it doesn't indicate WHY you're not credit worthy.
]]>"I'll take The Rapists for $200 Alex."
"That's Therapists, not The Rapists."
]]>Wasn't this an episode of "All in the Family" as well? C'mon...this is the next century. Is banking now jumping the shark as well?
]]>Sure the bank should have looked more into it, maybe tried a different bureau, but the family should have spent their time arguing with Experien, since it was their problem (at least the articles make it sound like all the letters went to the bank)
]]>@Caveat: There are regulations in place about who and why you can lend money to people. It wasn't the bank's fault at all. They can't just decide to give someone money. What if it had been a case of identity theft?
If the credit report says deceased, all kinds of red flags go up and the loan is put on hold. There isn't anything the bank can do about it.
]]>This happened at my job as well.. we had to hold his application until he could convince Equifax that he wasn't dead. The credit report says everything on it except the score, and it would say "WARNING: Deceased" in place of it. He did eventually get it removed from his credit report.. I have no idea how, but he did end up getting the loan.. it just took a few months.
Also, another thing similar to this was that my grandma got in trouble (Or, I guess, technically my grandpa) for cashing her SS checks. The reason? They said SHE was dead. She had to go through all kinds of hoops to convince the Social Security office that she wasn't dead at all. They were accusing my grandpa of pulling fraud over on the Federal Government and everything.
What a pain.
]]>@PsiCop: Or the very funny "I'm not dead scene" from "Monty Python and the Holy Grail." [www.imdb.com]
]]>@wrjohnston91283: Right the score may not factor in but anytime and anywhere he applies for credit it's going to show and most companies are going to hold that against him, even though it's an error on the credit bureaus end.
]]>It might not be effecting his score, so that might be part of his lack of caring. Perhaps it's shown on the report, but the score algorithm doesn't factor it in. I'm not saying it should remain on his report past the legal limit, just a thought.
]]>@cordeliapotter: You can go to their websites to obtain their addresses, send them a certified letter stating it needs to be removed from your credit report. They are under legal obligation to research it and if they find it shouldn't be on there it has to be removed within 30 days of receipt of your certified letter. Sometimes they work a little slower if just receiving the letter from you so it helps to have an attorney or paralegal write up the letter so it shows it's coming from a law firm.
]]>@bones11: Correction 1998 is the year it was reported.
]]>Same company I work for. I actually just talked to a guy this last week who when I pulled his credit report showed he had a bankruptcy from 2008. Now I know it's illegal to continue reporting a bankruptcy from that far back, it's usually 7 or 10 years but I had to go by what my system says or I get in trouble. I recommended he contact the credit bureaus and he said he had no idea how so he'll just deal with it. Apparently not everyone is as invested in their credit as most, it shocked me that he had absolutely no desire to get it fixed and removed from his credit. Oh well.
]]>My mom has an unpaid cell phone account on her credit report, but she's never had any kind of cell phone. When she first saw it, she canceled the account with the cell phone company, but I guess the company still wants the money even though she's never had a cell phone. Since it's not hers, she's never paid it, and it's stuck on her credit report. Now she wants to refinance her mortgage, and she has had some kind of lawyer involved for over a year, but it's still on her credit report. I was going to take over, but I figure if some lawyer can't do it, how can I?
]]>It just goes to prove that bankers are idiots. They are sheep that are incapable of any independent thought or action. Why is it a surprise that so many smaller banks are going under, and that the big ones, the ones that rely on the 3 credit report agencies for their decisions, are only surviving by our bailouts? Personally, I have never managed to have the patience to negotiate a mortgage with a bank. The same goes for car loans. Patience to wait until I can afford something and cash are my friends.
Also, those that let themselves be duped into believing that paying mortgage interest to banks for tax deductions, or because not tying up cash allows investing in more profitable ventures need to take courses in accounting.
]]>I used to sell cars and if this would have happened at my lot, we would have refused her service as well. It's absurd but financing companies have certain guidelines they have to abide by. The main problem I faced with customers on the car lot was when they had a reposession on their cb. They almost always denied it or acted like that was crazy. I always told those people that if it's incorrect they have to get ahold of that credit bureau and have it fixed. So, since I've worked with credit before I'm now consciously aware of my own. So, I agree make sure to check your credit score at least once a year.
]]>