More Sneaky methods creditors are using to hurt your credit scores. More and more credit reports are found to have erroneous, inaccurate, or unverifiable. Most estimates show that between 76-100% of reports contain errors. We have been dealing with creditors for years and our own internal study showed that 100% of reports contained errors.
It is not a fluke that these percentages are so high. Many creditors are intentionally initiating tactics to lower consumer credit scores. This then gives them more leverage to try to collect the debt or charge more interest. One of the most aggressive tactics these creditors are using is the re-aging of the Date of Last Activity (DLA) on your credit reports. The DLA measures how recent your credit accounts are on your credit reports. With collection accounts this date is based on the last date you made a payment on that account.
But many creditors are changing these dates to make it look like your negative accounts are more recent than they really are. Most collection companies are also blatantly violating Federal law and miss-representing the Date of last Activity. They report the DLA as the date they took over the account, when really it is supposed to reflect the date you last made a payment. The end effect of these actions is devastating to your credit scores.
Instead of the negative accounts having a lesser credit score effect through time, now creditors are reporting it for many years to make it look like the account was recently defaulted.This keeps your credit scores low and prevents you from using your credit to qualify for financing. Not only are these practices unethical, but they are also illegal and can be stopped with proper credit dispute tactics.
We always insure our clients have accurate Date of Last Activities reporting. If they are not being reported accurately on a negative account, we use this Federal law violation as leverage to force the creditor to delete the negative item. As our client, make sure you let us know if you see an account on your report that reflects an inaccurate DLA. This way we can even more quickly increase your credit scores.
Contact us today to learn how you can have the exceptional credit you deserve.