Disputing Credit Reports

After a credit report has been carefully reviewed, any mistakes may be disputed. Information providers and credit reporting agencies are required to correct incorrect information. This is in accordance with the Fair Credit Reporting Act. There is a suggested procedure for consumers to report errors.

Confirming Inaccuracies

Unauthorized accounts and account activity should immediately be investigated. This involves contacting the appropriate institution. All relevant contact with the institution should be thoroughly documented. This documentation should include bank data, financial institutions and credit issuers. All document information should be gathered prior to contacting the credit reporting company.

Contacting the Credit Bureau

Inform the credit bureau of the information that is considered inaccurate. This should be done in writing. Copies of supporting documents should be included in the correspondence. Originals should not be sent, but safely stored. The letter of dispute should contain:

• The complete name and address
• Each disputed item clearly indicated
• A statement of facts surrounding the dispute
• Why the dispute is being made
• A request for a removal or correction of the disputed item(s)

A copy of the credit report (with disputed items circled) should also be enclosed. The request should be sent by certified mail, with a ‘return receipt requested’. The retuned receipt should be stored with a copy of the dispute letter and supporting original documents. A credit bureau is required to investigate the dispute within 30 days. Exceptions are disputes that are considered “frivolous”.

Dispute Investigation

An investigation into the disputed data is then initiated by the credit reporting company. At this point, the disputed information data is submitted to the information provider. The information provider will review the information and report back to the credit bureau. If the information provider determines that the disputed data is a mistake, it must report this to credit reporting companies. The information provider is required to notify all 3 nation-wide credit reporting agencies. At this point the information must be corrected on the credit report.

The credit reporting company is required to provide the results of the dispute to the consumer, in writing. If the dispute results in a correction to the report, a free copy of the credit report must be provided. This free report may not be counted as the legally entitled free annual credit report. The information provider’s name, address and phone number must also be included in the results sent. Once the dispute is proved valid, the information provider may not report it again.

Upon request, the credit reporting company will send correction notices to those receiving your report within the last six months. You may also request corrections sent to those who have received employment-related reports within the last two years. If your dispute is not resolved, you may request a copy of the dispute be placed in your file. The copy of the dispute can also be placed in all future reports. You may also request a copy of the dispute be sent to those receiving your report in the recent past. This service may incur a fee, however.

Accounts Not Listed

A credit report may not reflect every existing credit account. Not all creditors report information to credit reporting companies. Examples of these may include: credit unions, gasoline card companies, local retailers, travel agencies and entertainment companies. A consumer may request that these creditors be added to their credit report. Credit reporting agencies are not required to do this. However, they may agree to add verifiable accounts for a fee. Regular updating of these accounts may not occur if regular reporting is not provided. This can assist in situations where “insufficient credit file” information has resulted in denied credit.