How to Dispute Credit Report
Errors
Your credit report--a type of consumer
report--contains information about where you work and
live and how you pay your bills. It also may show whether
you've been sued or arrested or have filed for bankruptcy.
Companies called consumer reporting agencies (CRAs)
or credit bureaus compile and sell your credit report
to businesses. Because businesses use this information
to evaluate your applications for credit, insurance,
employment, and other purposes allowed by the Fair Credit
Reporting Act (FCRA), it's important that the information
in your report is complete and accurate.
Some financial advisors suggest that
you periodically review your credit report for inaccuracies
or omissions. This could be especially important if
you're considering making a major purchase, such as
buying a home. Checking in advance on the accuracy of
information in your credit file could speed the credit-granting
process.
Getting Your
Credit Report
If you've been denied credit, insurance, or employment
because of information supplied by a CRA, the FCRA says
the company you applied to must give you the CRA's name,
address, and telephone number. If you contact the agency
for a copy of your report within 60 days of receiving
a denial notice, 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.
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.
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 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.
First, tell the CRA in writing what
information you believe is inaccurate. Include copies
(NOT originals) of documents that support your position.
In addition to providing your complete name and address,
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. Your letter may
look something like the sample below. Send your letter
by certified mail, return receipt requested, so you
can document what the CRA received. Keep copies of your
dispute letter and enclosures.
CRAs must reinvestigate the items
in question--usually within 30 days--unless they consider
your dispute frivolous. They also must forward all relevant
data you provide about the dispute to the information
provider. 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 information provider
finds the disputed information to be inaccurate, it
must notify all nationwide CRAs so they can correct
this information in your file. l Disputed information
that cannot be verified 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.
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) 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 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.
Adding Accounts
to Your File
Your credit file may not reflect all your credit accounts.
Although most national department store and all-purpose
bank credit card accounts will be included in your file,
not all creditors supply information to CRAs: Some travel,
entertainment, gasoline card companies, local retailers,
and credit unions are among those creditors that don't.
If you've been told you were denied credit because of
an "insufficient credit file" or "no
credit file" and you have accounts with creditors
that don't appear in your credit file, ask the CRA to
add this information to future reports. Although they
are not required to do so, many CRAs will add verifiable
accounts for a fee. You should, however, understand
that if these creditors do not report to the CRA on
a regular basis, these added items will not be updated
in your file.
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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