How to Dispute Credit Report Errors

How To Dispute Credit Report Errors: Your credit report contains personal information about where you work and live and how good or bad you are at paying debts. It can also show whether you've been sued or arrested, even whether you have filed for bankruptcy. Organizations called Consumer Reporting Agencies or Credit Reference Agencies (CRAs) or Credit Bureaus use your personal financial data to compile your credit report and then sell your credit report to businesses.

Because financial and lending institutions use this information to evaluate your application for credit, insurance, employment and other purposes (all approved by the Fair Credit Reporting Act (FCRA)), it's important that the information in your report is complete and accurate.

Financial advisors suggest that you periodically review your credit report for inaccuracies or omissions and dispute credit report errors if they are found. This is especially important when you consider making major purchases, such as buying a home or car. Checking in advance on the accuracy of information in your credit file, and if necessary, dispute credit report errors could speed the granting of credit.

How to Get Your Credit Report

If you've been denied credit, insurance, or employment because of information supplied by a Credit Reference Agency ( CRA ), the Fair Credit Reporting Act ( FCRA ) directs that the company that denied you credit must supply the Credit Reference Agencies ( CRA ) name, address, and telephone number. And if you contact the Agency for a copy of your report within 60 days of your credit denial, then the report is free. In addition, you're entitled to one free copy of your report a year if you certify in writing that (1) you're unemployed and plan to look for a job within 60 days, (2) you're on welfare, or (3) your report is inaccurate because of fraud. Otherwise, a CRA may charge you up to $9.00 for a copy of your report.

You can use this handy free credit report request letter to send to all 3 bureaus. This will enable you to get a copy of your credit report free. In addition, from December 1, 2004 changes in the Law entitle you to one copy of your credit report each year free of charge.

If you simply want a copy of your report for your own reference, then call any Credit Reporting Agency ( CRA ) listed in the Yellow Pages under "credit" or "credit rating and reporting." Ensure you call each Credit Bureau listed below since more than one agency may have a file on you, some with different information. The three major National Credit Bureaus are:

Equifax, P.O. Box 740241, Atlanta, GA 30374-0241; (800) 685-1111.

Experian (formerly TRW), P.O. Box 2002, Allen, TX 75013; (888) EXPERIAN (397-3742).

Trans Union, P.O. Box 1000, Chester, PA 19022; (800) 916-8800.

Correcting Errors

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 responsibility for correcting inaccurate or incomplete information in your credit report. And if any of the information held on you is incorrect, then you should dispute any credit report errors you find. To protect all your rights under the law, contact both the CRA and the information provider.

To begin, tell the CRA in writing what information you believe is inaccurate. Include copies (NOT originals - always keep these!) of all documentation that support your position. In addition to providing your complete name and address, you should clearly mark each error or in your credit report that you dispute. Clearly state all the facts and explain why you dispute the information. In addition, request deletion or correction of the error.

It's advisable to enclose a (photo) copy of the free report you ordered with the items and errors you dispute circled. Use the sample letter below to dispute credit report errors. Then send your letter by certified mail, return receipt requested, so you can document what the CRA received. Keep ALL copies of your dispute letters and enclosures.

By law, CRAs must reinvestigate any items or errors in your credit report--usually within 30 days--unless they consider your dispute frivolous. They also must forward all relevant data you provide about the dispute to the potential creditor. After the creditor receives notice of the dispute from the CRA, it must also investigate and review all relevant information provided by the CRA, and report the results to the CRA. If the creditor finds the disputed information to be inaccurate, it must notify all nationwide CRAs so they can correct this information in your file. Further, all Disputed information that cannot be verified must be deleted from your credit file.

If your report contains errors, 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 are current with your payments.

If your credit file shows an account that belongs only to another person, then the CRA must delete it. When the reinvestigation is complete, the CRA must give you the written results and a free copy of your report if the dispute results in a change. If an item is changed or removed, the CRA cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness, and the CRA gives you a written notice that includes the name, address, and phone number of the provider.

Also, if you request, the CRA must send notices of corrections to anyone who received your report in the past six months. 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, in addition to writing to the CRA, tell the creditor or other information provider in writing that you dispute an item. Again, include copies (NOT originals - keep these!) of documents that support your position. Many providers specify an address 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 time can ensure 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.

Dispute Credit Report Errors Sample Dispute Letter

Date

Your Name
Your Address
Your City, State, Zip Code

Complaint Department
Name of Credit Reporting Agency
Address
City, State, Zip Code

Dear Sir or Madam:

I am writing to dispute the following information in my file. The items I dispute are also encircled on the attached copy of the report I received. (Identify item(s) disputed by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.)

This item is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why). I am requesting that the item be deleted (or request another specific change) to correct the information.

Enclosed are copies of (use this sentence if applicable and describe any enclosed documentation, such as payment records, court documents) supporting my position. Please reinvestigate this (these) matter(s) and (delete or correct) the disputed item(s) as soon as possible.

Sincerely,
Your name

Enclosures: (List what you are enclosing)

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