What does E-OSCAR stand for?
Electronic Online System for Complete and Accurate Reporting.
e-OSCAR is a web-based, Metro 2 compliant, automated system that enables Data Furnishers (Credit Issuers like Bank of America Visa Credit Card and Collection Agencies like NCO Financial), and Credit Reporting Agencies (CRAs) to create and respond to consumer credit history disputes (the Dispute Letters that you mail to them).
Credit Reporting Agencies (CRAs) include Equifax, Experian, Innovis and TransUnion, their affiliates or Independent Credit Bureaus and Mortgage Reporting Companies. e-OSCAR also provides for Data Furnishers (DFs) to send “out-of-cycle” credit history updates to Credit Reporting Agencies (Equifax, Experian, Innovis and TransUnion).
The system primarily supports Automated Credit Dispute Verification (ACDV) and Automated Universal Dataform (AUD) processing as well as a number of related processes that handle registration, subscriber code management and reporting. This system was created to reduce the overhead caused by about 20 thousand dispute letters received by the CRAs every day.
This is what Credit Bureaus should do when they receive a Dispute Letter:
After this section you will find the real process followed by Credit Reporting Agencies (Credit Bureaus) using e-OSCAR.
- An employee at the Credit Bureau receives the dispute and personally reviews it. During this review they gather information and documents in regards to the disputed account by contacting the original creditor or collection agency (Data Furnisher).
- The Credit Bureau Employee then reviews copies of original documents like the Credit Application, Billing Statements, Billing and Payment Statements or notes in the account looking for any errors in reporting. If anything is in question they will request proof from the “Data Furnisher.”
- Once a full investigation has been completed, the Credit Bureau Employee will then update the consumer’s account according to the results of the investigation.
- The Credit Reporting Agency receives the Credit Dispute sent by YOU in representation of the Consumer (like it was sent “by the Consumer”).
- Using e-OSCAR, the Credit Dispute Letter is scanned (using fast commercial scanners), producing an electronic “image” of the letter.
- Using Optical Character Recognition (OCR) technology, e-OSCAR converts the “image” of the Credit Dispute Letter to “plain text” (like the one entered in Microsoft Word or NotePad in your computer).
- The dispute letter, now in plain text, is compared against a boiling plate of the most common dispute letters managed by the Credit Reporting Agency. At this point, the formatting of the text is left behind and the advanced algorithms make sure your Dispute Letter does not match one of the letters marked as “repetitive”.
- This step allows the Credit Reporting Agencies to decrease the number of disputes that must be processed, among the more than 20 thousand disputes received everyday, reducing the overall cost of dispute processing which rounds the $4.50 per dispute.If your dispute letter passes the filtering process, an Automated Credit Dispute Validation (ACDV) is initiated by a Credit Reporting Agency on behalf of the consumer and it is routed to the appropriate Data Furnisher. Once the The ACDV is returned to the initiating CRA with updated information (if any) relating to the consumer’s credit history. If an account is modified or deleted, carbon copies are sent to each CRA with whom the DF has a reporting relationship
- If your dispute letter passes the filtering process, an Automated Credit Dispute Validation (ACDV) is initiated by the Credit Reporting Agency on behalf of the consumer and it is routed to the appropriate Data Furnisher via e-OSCAR.
- If your dispute letter is rejected by the filtering process, a Response Letter is sent to the Consumer (your Client) identifying the dispute as “Frivolous”.