by: Michael Saunders
Because their business is lending money to their customers, all banks aggressively report credit items when they are found. The credit reporting industry was created in large part to aid banks in making lending decisions. Although banks often grant "secured credit" - meaning that they can attach specific items such as your house or car to a loan agreement - they are still vulnerable to your failure to keep a payment promise.
Credit reporting is an important tool that banks use to ensure they get paid. Banking is also a highly regulated industry. For these reasons, it is often very difficult to negotiate with a bank. It's much harder for a bank to cut an individual a break, because they are required to treat customers equally.
Bank negotiations are difficult. Except in cases where you have absolute proof that the bank is in error, you are better off disputing a bad bank-credit item with a credit bureau. Nevertheless, there is some wiggle room for a negotiation. If you can, build a relationship with an individual who can help you. Polite pestering can get you far with banks, at least to the point where it's easier for them to clear your credit than answer your calls. (continued...)
Procedures for Dealing with Bank Error In Credit Reporting
About The Author
“TEO” and co-founder of Honest Tea, Seth Goldman, talks about living in a shade of grey – businesses wouldn’t exist without its consumers. As he said, “There are current issues we deal with, and even if we solve one of those issues, we should be moving on to the next one. As long as we are a consumer-based economy, there’s no way around it. No way to totally lose that area of grey.”