What is Consumer Statement?

The consumer statement should always be short and direct to the point. It must not pin the blame on someone else (unless you are a victim of identity theft). If you decide to write a consumer statement, keep in mind the following pointers:

• Do not complain or present yourself as a victim (unless you truly are a victim of identity theft)


• Take responsibility


• Do not blame anyone or anything


• Do not justify what happened


• Keep in 100 words or less

Please refer to
720creditscore.com

This article discusses the following:

1. Use of Consumer Statement


2. Policies Governing Consumer Statement


3. Relationship of Consumer Statement and Credit Ratings

What is the Use of Consumer Statement?

Consumer Statements in Credit Files
Under the Fair Credit Reporting Act, you are allowed to add a 100-word Consumer Statement to any of your credit reports if you have disputed an item in your credit files but the item was not removed because it was verified by a creditor. Many consumers often think that taking advantage of this right to add a consumer statement is a good opportunity.
They think this way since it offers an opportunity to divulge what happened, elaborate on the dispute, or perhaps explain why going through a divorce resulted in failure to pay a bill or being laid off for six months. These reasons are invoked for the loan default. They think of this as an explanation that could prove that it was not the borrower’s fault or show the lender reason for failing to pay.

Pls refer to
askthemoneycoach.com

What are the Policies about Consumer Statement?

The Fair Credit Reporting Act (FCRA) is designed to promote accuracy and ensure the privacy of the information used in consumer reports. Recent amendments to the Act expand your rights and place additional requirements on credit bureaus. Businesses that supply information about you to credit bureaus and those that use consumer reports also have new responsibilities under the law.

bcsalliance.com

This what this website has to say: The Fair Credit Reporting Act regulates consumer credit reports and consumer reporting agencies that are also known as credit reporting agencies or credit bureaus. The law sets out the responsibilities of credit reporting agencies and your rights to ensure that the information collected about you is accurate and is disclosed to you and only to creditors, insurance companies and employers for the following purposes:

• Determine your eligibility for credit or insurance for personal, family or household purposes


• Determine your qualification for certain employment actions including hiring, promotions, demotions, transfers, discharges and other employment decisions


• Determine your eligibility for residential or apartment leases and mortgages, refinancing, and equity loans


• Find out child support payment ability, government licenses and public benefits, business transaction that you applied for or sought to pursue


• Assess your prepayment and credit risk that are associated with a current obligation

Pls see
lawyers.com

What is the Relationship of Consumer Statement and Credit Ratings?

The consumer statement can prove to be counter-productive. There is another practical reason why you should avoid Consumer Statements. They remain on your credit reports for 10 years. If you had a dispute with a creditor and, through your own perseverance, or through some settlement, you actually resolved the matter. The dispute is over. The creditor may even agree to delete negative information, change your payment status or update your credit history – all of which could wipe away any reference to the matter. However, if you have that consumer statement still lingering on your credit file, potential lenders will know that you were late with a bill or had some dispute with a creditor. It’s worse if you have a late payment or a negative account that was several years old. If the blemish on your record occurred, say, four years ago, it will come off your credit file in another three years. However, if you added a consumer statement just a year ago, then the statement referencing the black mark on your credit will remain for another nine years, which is six more years than the late payment was shown.

Pls see
askthemoneycoach.com

Determining the Advantages and Downsides

Now that you are aware of the provisions of the Fair Credit Reporting Act and the details about Consumer Statements, it is now up to you to find out the effects on your credit standing. Follow the Law and do what is beneficial for you as a good creditor.