How to Dispute Credit Report Errors

How important is your Credit Report?   Considering what companies use it for, a credit report can be o­ne of the most telling pieces of information about you.   The report contains information, such as where you work, live, and how you pay bills.   It can disclose whether or not you've ever been arrested, sued, or filed bankruptcy.    Consumer reporting agencies or credit bureaus, which compile information about you, sells your credit report to businesses.   Your credit report is used by these businesses in determining your application for employment, insurance, loans, or even housing.   Because so many decisions depend o­n what your credit report says, it is important that the information is complete, current, and accurate.

You may have been told by financial advisors to check your own credit report.   You need to know what all is being reported about you, especially if there are any mistakes or inaccuracies.    It is important to be knowledgeable about the report before making a large purchase, like buying a home, or applying for credit.   Problems o­n your credit report may delay or possibly even negate your ability to be granted credit or loans.

If you've been denied credit, insurance, or employment, the company that denied you must give you the name, address, and telephone number of the Credit Reporting Agency that supplied the information.   The report is free, if you contact the agency for a copy of your report within 60 days of receiving a denial notice.   Also, you're entitled to o­ne free copy of your report a year if you verify in writing that you meet o­ne of the following criteria:

•  you're unemployed and plan to look for a job within 60 days,

•  you're o­n welfare, or

•  your report is inaccurate because of fraud. Otherwise, a CRA may charge you up to $9.00 for a copy of your report.

If you simply want a copy of your report, call the CRAs listed in the Yellow Pages under "credit" or "credit rating and reporting." Call each credit bureau listed since more than o­ne agency may have a file o­n you, some with different information.

Under the FCRA, both the CRA and the organization that provided the information to the CRA, such as a bank or credit card company, have responsibilities for correcting inaccurate or incomplete information in your report. To protect all your rights under the law, contact both the CRA and the information provider.

What to do if you dispute something o­n your Credit Report

First, write to the Credit Reporting Agency you received your report from and explain what information you believe is inaccurate.    Provide copies of documents that support your position.    Your letter should clearly identify each item in your report you dispute, state the facts and explain why you dispute the information, and request deletion or correction. You may want to enclose a copy of your report with the items in question circled.   Be sure to include your complete name and current address.   Then, send your letter by certified mail, return receipt requested, so you can document that the CRA received your information. Keep copies of your dispute letter and enclosures.

The Credit Reporting Agencies (CRAs) must reinvestigate the items in question--usually within 30 days--unless they consider your dispute frivolous. The CRAs then forward your information and dispute to the entity that provided the inaccurate credit information to their agency.    After the information provider receives notice of a dispute from the CRA, it must investigate, review all relevant information provided by the CRA, and report the results to the CRA. If the company that provided the information does find the disputed information to be inaccurate, it must notify all nationwide CRAs so they can correct this information in your file. lf disputed information that cannot be verified it must be deleted from your file.

·      If your report contains erroneous information, the CRA must correct it.

·      If an item is incomplete, the CRA must complete it. For example, if your file showed that you were late making payments, but failed to show that you were no longer delinquent, the CRA must show that you're current.

·      If your file shows an account that belongs o­nly to another person, the CRA must delete it.

Upon completion of the investigation, the CRA must give you the written results about their findings.   They must also provide a free copy of your report, if the dispute results in a change. If any items are changed or removed, the CRA cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness.   The CRA must then give you a written notice that includes the name, address, and phone number of the information provider in question.

The CRA must send notices of corrections to anyone who received your report in the past six months, if you request that they do so.   Job applicants can have a corrected copy of their report sent to anyone who received a copy during the past two years for employment purposes. If a reinvestigation does not resolve your dispute, ask the CRA to include your statement of the dispute in your file and in future reports.

Second, tell the creditor or other information provider directly that you dispute an item.    Write to them and include copies (NOT originals) of documents that support your position. Many companies have a department or address specifically for disputes. If the provider then reports the item to any CRA, it must include a notice of your dispute. In addition, if you are correct-that is, if the disputed information is not accurate-the information provider may not use it again.

Accurate Negative Information

When negative information in your report is accurate, o­nly the passage of time can assure its removal. Accurate negative information can generally stay o­n your report for 7 years. There are certain exceptions:

·      Information about criminal convictions may be reported without any time limitation.

·      Bankruptcy information may be reported for 10 years.

·      Credit information reported in response to an application for a job with a salary of more than $75,000 has no time limit.

·      Credit information reported because of an application for more than $150,000 worth of credit or life insurance has no time limit.

·      Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. Criminal convictions can be reported without any time limit.

Many businesses do not report their credit information to agencies.   Travel, entertainment, gasoline card companies, local retailers, and credit unions are examples of creditors that usually do not report information.    Therefore, if you have been denied credit, because you lack a credit file, but you do have credit accounts with certain companies, you can request that they report your information to a Credit Reporting Agency.   Some businesses will request a fee for this service.   It is also important to note that because these businesses do not usually report credit information, your information will not be updated automatically.

Your credit report is very important when determining your status for things such as loans, employment, credit and housing.     If you have never done so, request a copy of your own credit report and review the information it contains.    If you find inaccuracies, report them immediately to the Credit Reporting Agency and the information provider.   A clear and accurate credit report can be an invaluable piece of information about you.