It is extremely important for everyone to get their free credit report, check it for errors, and dispute the information to get it corrected. You are protected by the Fair Credit Reporting Act that allows you to dispute any wrong information by asking all credit reporting agencies (like Experian, TransUnion, etc) to respond with an investigation of your creditors.
If the disputed information is found to be inaccurate, it will surely be removed from your credit report or corrected within thirty days. Also you have the advantage of doubt, which is that if the creditor is unable to prove their information is correct, it will be considered inaccurate and will have to be changed.
What Might Need to be Disputed?
Check the following areas in your credit report where the mistakes are found mostly:
Inaccurate details
You may find that creditors have reported late payments that you don’t agree with. If you have some information to prove yourself such as cancelled checks or statements that show when the checks were cashed, you are more likely to be able to get the late notation removed.
Old, outdated information
Negative account information can only be reported within seven years after the first delinquency; except Chapter 7 bankruptcy.
Fraudulent Accounts
Check for any accounts appearing on your credit report that you didn’t open. This could indicate that there has been an identity theft, or that account information has been mixed up with someone whose name is similar to yours.
How to File a Credit Dispute
The dispute should be filed in writing. A letter should also be mailed to the credit reporting agency or use their online form for filing disputes. According to The Fair Credit Report Act, the credit-reporting agency has 30 days to investigate the dispute claim and come to a conclusion on the situation. You will then receive the written results and a free copy of your credit report if any changes have been made.
The best way can be to make a photo copy of your credit report and enclose it with your letter, encircling the disputed error on the report and numbering it. In your letter, reference each number for each piece of information you are disputing with the reason you are disputing it.
For fast processing, make sure you include:
- Your full name
- Mailing address
- Your date of birth
- Social security number
- Name of creditor and the account number of the item you are disputing
- Your signature
Alternative Dispute Options
It is also possible to contact the creditor directly. If you contact a creditor and indicate that they have reported some incorrect information to your credit report, then according to the FCRA , they are not allowed to report that item at all to the credit report without including a note that you are disputing the information. But obviously if the information is wrong, it must be corrected or removed from your report.
What to Do if The Dispute Doesn’t Result in a Settlement
If you are unable to decide upon a settlement, you can then file a dispute with the National Consumer Assistance Center. Although it is possible that you may still not be able to prove yourself right if you have insufficient evidence.
You can also contact your Attorney General’s Office if you believe the credit bureau has violated the FCRA. You can sue the credit bureau or the creditor if you think that they have violated the law.
