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
There is a new, seven-foundation partnership established that support nonprofits to become more effective and engaged. The Fund for Shared Insight has announced its first round of grants, which are intended “to encourage and incorporate feedback from the people the social sector seeks to help; understand the connection between feedback and better results; foster more openness between and among foundations and grantees; and share lessons.”