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Consumer Statement
A consumer statement is a document written by a consumer that is added to their credit reports. This statement is in order to explain why there may be negative information on the credit report such as late payments and unpaid bills. There could be some circumstantial reason why a person could not repay a loan or a bill that may affect the creditors decision in regards to granting the consumer credit. The reason could be sudden unemployment or illness and even poor service can be used as an excuse for non-payments.
Once the statement has been added it must be given to any company that requests a copy of the credit report.There is no guarantee that a consumer statement will be effective as many lenders base their decisions on credit score rather than the details behind the score. A consumer statement is usually added to a credit report as a last resort because it could lower the credit score. Statements that have been added to credit reports must remain for two or three years before they can be removed. A better option would be if the consumer was seen to be making an effort to improve their credit ratings.
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