If a credit bureau refuses to investigate a legitimate dispute by claiming it is "frivolous and irrelevant," you can retain an attorney and file a lawsuit against the bureau for noncompliance with the FCRA or similar state statutes.
Each bureau is accountable for their performance under the law. The key to winning any suit is accurate records and documentation (evidence). You must be able to document phone calls, visits, loan denials and / or letters. If you follow the organizational system and the follow-up schedule outlined in this resource, you will be armed with enough ammunition and documentation should you desire to take legal action.
Even if you never plan to go this far, you should set up a file to keep all correspondence from the very beginning-just in case. And yes, the credit bureaus do actually lose in court quite often. It is interesting to read in one California Judge's decision that a credit bureau can not claim immunity simply because they obtained the information in your file from another source (your creditors). The bureau has "independent grounds for liability."
The obvious, best strategy is to take the bureau to court and win based on the evidence. But, there is another possible strategy that can be used even if you have a weak case. You can try to create a window of time in which the negative information cannot be reported to potential credit granters.
You then would use this window to establish your credit with your future lender. To establish this window have your attorney file a motion for injunctive relief while the trial is pending. Explain that the negative remarks incorrectly stated on your file are threatening your basic living such as buying or renting a home, obtaining a business loan, obtaining employment, etc. Your attorney can ask the court to order the credit bureau to refrain from including the item (s) in dispute in your report until the matter is adjudicated.
If the court rules the motion in your favor, the credit bureau will be compelled by law to refrain from reporting the disputed derogatory information. This may give you months in which to work on establishing credit without the hindrance of the negative information. With the aid of a good attorney's stall tactics, you may stretch months into a year or more.
Put yourself into the shoes of that little girl in Atlanta that works for Equifax. Everyday she when the mail clerk comes by she gets (100) letters to read and do something about. Now the source for these letters might be just some generic letter on a form purchased locally. They are all the same. In general, the letters simply tell that person to fix what is wrong. Very impersonal. So, even without being able to look out a window, but a wall and working in this tiny cubicle, you can understand one's attitude about responding to a letter along about the late afternoon. You are not the most "outgoing flower" in the dispute department.
So, when this little girl gets that letter, she simply dials the provider of the information and verifies that you indeed are the account holder. That is it Yep, she will also verify that you owe "Slippery Paul" two-thousand bucks. Now when you get this response back from the credit bureau, you think that is the end of the line. I'll just bet that this little girl never asked the other person on the end of the line for the "commencement of the initial delinquency". In other words, when was this account first late? Important? YOU BET. This is another article on your credit prison. So watch for it.
Now, lets just say that you wrote a letter but you used Mom's old letter writing style. Remember that? You should because Mom was a master letter writer and never knew it. Didn't she always begin a letter with "How are you"? Go ahead and try that. You simply want to follow these rules when you write a letter to the credit bureau. (1) Tell them what they want to hear (2) Tell them what you want to have them do. (3) Tell them what you told them. That's it. So, keep it simple, and do not forget the initial greeting.
When, Little Susie that works at Equifax gets your letter and it says "Thank you for taking the time to help me", she hasn't done anything yet but you have already thanked her. She, will remember this letter out of (100) and believe me, it will get results.