As you learn more about reporting consumer credit to the bureaus, it’s easy to get lost in all of the industry’s terminology. Credit reporting is full of cryptic acronyms like CRA, DF, FICO, and FCRA. While each of those has a place in your credit reporting vocabulary, it’s important that you learn one more: e-OSCAR.
What is e-OSCAR?
The “OSCAR” in e-OSCAR stands for “Online Solution for Complete and Accurate Reporting.” The software was created in 1993 by the “big three” credit bureaus: Equifax, Experian, and TransUnion. With the recent addition of Innovis as a major credit reporting agency, e-OSCAR is now owned and used by all four credit bureaus.
E-OSCAR is basically an automated credit dispute system. The agencies created it to alleviate the growing amount of manpower needed to process consumers’ claims of mistakes on their credit reports.
According to the Federal Trade Commission, at least one in five consumers has an error on one of their three credit reports. The same FTC report found that one in four of these errors could have had a negative impact on the consumers’ overall credit scores. Agencies encourage consumers to check each available credit report at least once a year and immediately report anything that seems to be incorrect.
Consumers can submit their complaint to the credit reporting agency by phone, online, or by mail. In most cases, however, most agencies prefer that the consumer submits the dispute in writing in the form of a dispute letter. With the volume of these letters topping the thousands each day, the bureaus created e-OSCAR to streamline the dispute process.
How e-OSCAR works
When the credit reporting agency receives a dispute they enter it into the e-OSCAR system. Next, e-OSCAR representatives categorize the complaint in one of 29 three-digit dispute codes. These codes include:
- 001 — not his/hers.
- 002 — belongs to another individual with same/similar name.
- 008 — late due to change of address or never received statement.
- 010 — settlement or partial payments accepted.
- 019 — included in the bankruptcy of another person.
- 038 — claims account closed by consumer.
In addition to the code that best fits the dispute, the agency may enter a few lines of explanation. Once e-OSCAR receives this data, the system creates and records a formal dispute. It then distributes the information to the other credit reporting agencies and to the appropriate data furnishers.
Why you should care
If you’re a data furnisher — anyone who reports credit or payment information to a credit reporting agency — you should know about e-OSCAR. Based on the sheer volume of mistakes and disputes today, you’re likely to receive an e-OSCAR notification asking you to investigate something you reported. This notification is the Automated Credit Dispute Verification, or ACDV. If you’ve registered with e-OSCAR, you’ll receive your ACDV electronically; if not, you’ll find them in your (snail) mailbox.
As a data furnisher, it is your responsibility to “investigate consumer disputes about any information you provide.” according to the FTC. Your credit reporting responsibilities and legal obligations are detailed in the Fair Credit Reporting Act (FCRA) under the Furnisher Rule. You can respond to ACDVs online using the e-OSCAR system or by mail.
Another reason e-OSCAR is important is that consumers may and often do report credit report disputes directly to data furnishers. They may report a dispute to you as well as to the credit reporting agencies. It’s possible that you’ll learn of the complaint through multiple channels.
When you receive a notification, you should immediately try to determine if there is indeed an error in your reporting. If so, you can use the e-OSCAR system to send a correction to credit reporting agencies. E-OSCAR will create and distribute to the bureaus a notification called an Automated Universal Data (AUD).
How Datalinx can help
Datalinx is here to help you with all things credit reporting — even e-OSCAR. We understand that the idea of reporting consumer or commercial credit can seem daunting. For nearly 20 years Datalinx has helped companies like yours start quickly and submit reports accurately. Contact us today to learn more and set up a one-on-one consultation.
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