A recent tip of the week from Ignite Consulting Partners involved one of the potentially complicated parts of the buy-here, pay-here business: handling matters when consumers raise concerns about their credit history.

The recommendations originated from the recently launched e-OSCAR 4.0, which is a web-based, Metro2-compliant, automated system that can enable data furnishers (DFs) and credit reporting agencies (CRAs) to create and respond to consumer credit history disputes.

“If you haven’t logged into the new version yet, brace yourself for a significantly different interface,” Ignite said in an industry message.

Despite the complete visual overhaul of e-OSCAR 4.0 compared to what’s now referred to as e-OSCAR Legacy, firm experts explained the Fair Credit Reporting Act (FCRA) rules remain the same. Ignite said the duties of creditors such as BHPH dealers who report performance through its related finance company haven’t changed.

Operators still must:

—Investigate the dispute

—Review relevant Information

—Report results

—Correct inaccurate information

—Timeliness as in generally within 30 days after the bureau received the dispute

—Maintain records of disputes and their resolution.

Ignite explained that all new disputes received after June 23 must be completed in e-OSCAR 4.0, while any pending disputes received before June 23 must be worked in Legacy e-OSCAR.

“Indirect disputes are initially directed to a credit reporting agency (CRA), which filters and subsequently sends them to data furnishers, typically utilizing the e-Oscar system,” Ignite said. “It is crucial to highlight that when an indirect dispute is received through e-OSCAR, data furnishers must conduct an investigation in response.”

Ignite offered three other recommendations for handling direct disputes in credit reporting, including:

—The firm emphasized accurate credit reports are vital for both individuals and businesses, as they play a significant role in areas such as loan approvals and rental applications.

“However, the credit reporting process is not flawless, and mistakes can arise from errors made by data furnishers,” Ignite said.

—Respond promptly since direct disputes must be investigated and responded to within 30 days of receipt.

—If you determine that a direct dispute is frivolous or irrelevant and an investigation is not required, Ignite said operators must still respond to that direct dispute within five days of that determination.

To get help navigating e-OSCAR 4.0, sign up for training, or if you want Ignite to take over the entire process, contact the firm at info@ignitecp.com.