Secret #6 – The Credit Bureaus profit from the outsourced automated dispute process! (Capitalism at its finest!)

by User Not Found | Dec 03, 2013

ID-100142701-150x150The Credit Bureaus have a clever way to actually turn a profit off the dispute process. Not just a small profit, but a multi-million dollar profit! Since the disputes are now all handled overseas, the actual cost to the bureaus has been determined to be approximately .57 cents per dispute processed. The Credit Bureaus actually charge the collection agencies and creditors a fee any time an error is discovered and a correction is necessary.

The cost for these corrections is .25 cents. The average consumer has 5 errors on their report so when all is said and done, $1.25 minus .57 cents is a .68 cent profit! This does not sound like much until you consider that each of the bureaus receive an average of 20,000 letters PER DAY! It has turned into a huge hidden profit center for the bureaus and this is why they encourage individuals to dispute and correct the errors that they created.

The above information was provided by Credit 360 Consulting.   For more helpful information and how to improve your credit, click on Credit 360 Consulting.