The Fair Credit Reporting Act says…
- the credit reporting agency, and
- the information provider (person, company, or organization providing information about you to a credit reporting agency)
must correct inaccurate or incomplete information on your report. What if you see inaccurate or incomplete information on your credit report? Under the FCRA, you have the right to contact the credit reporting agency and the information provider and tell them. They have the obligation to fix any errors you identify.
Correct Your Credit Report.
Send a letter to the credit reporting agency. In it, describe what information you believe is inaccurate. Send copies (NOT originals) of documents to support your claims. Provide your complete name and address.
Write your letter to clearly identify each disputed item on your credit report. State your facts. Explain why you are disputing the information. Request that they delete or correct the information.
You can enclose a copy of your credit report with the disputed items circled. Send your letter as certified mail with return receipt requested. This lets you document what the credit reporting agency received. Keep copies of all dispute letters and enclosures.
Credit Report Investigation.
Credit reporting agencies must investigate disputed items. It usually takes 30 days, unless the dispute is considered frivolous. They must forward your relevant data, about the inaccuracy, to the organization which provided the information.
The information provider is notified of a dispute from the credit reporting agency. The information provider then investigates, does a review, and reports results to the credit reporting agency. For disputed information the information provider agrees is inaccurate, it notifies all 3 national credit reporting agencies (CRAs). This lets the CRAs correct the information in your credit file.
Investigation Completion.
After the investigation, the credit reporting agency provides the written results. You get a free copy of your credit report if the dispute causes a change. (This free report is not counted as a free report under the FACT Act.)
For changed or deleted items, the credit reporting agency cannot put the disputed information back in your credit file. Only if the information provider verifies the information is accurate and complete, can this occur. The credit reporting agency must send you written notice which has the name, address, and phone number of the information provider.
Updated Notices.
If you submit a request, the credit reporting agency must send notices of corrections to all who received your report in the past 6 months. A correct copy of your report can be sent to anyone that received a copy the past 2 years for employment purposes.
Unresolved Disputes.
Sometimes, the investigation leaves your dispute unresolved with the credit reporting agency. You can ask that a dispute statement be included in your credit file and future reports. You can ask the credit reporting agency to provide your statement to any who received a copy of your credit report in the recent past. You should expect to pay for this service.
Disputes to Creditors.
Write the creditor or information provider that you dispute an item. Include copies (NOT the originals) of documents to support your position. Many providers have an address for disputes.
A provider may have reported a disputed item to a credit reporting agency. It must include your dispute as a notice. If you are correct because the information is inaccurate, the information provider cannot report it again.
Sample Dispute Letter.
Date
Your Name
Your Address
Your City, State, Zip Code
Complaint Department
Name of Company
Address
City, State, Zip Code
Dear Sir or Madam:
I am writing to dispute the information in my credit file. These disputed items are circled on the attached copy of the credit report I received.
This item (identify item(s) disputed by source name, such as creditors or tax court, and identify the type of item, such as credit account, judgment, etc.) is (inaccurate or incomplete) because (describe the inaccuracy or incompletion and why). I request the item be deleted (or request another specific change) to correct the information.
Attached are copies of (if applicable, use this sentence and describe any documentation, like payment records, court documents) supporting my position. I hope you investigate this (these) matter(s) and (delete or correct) the disputed item(s).
Sincerely,
Your name
Enclosures: (List what you are enclosing)
Accurate AND Negative Information.
What happens if you have negative information on your credit report that is accurate? Only time assures its removal. A credit reporting agency can report most accurate negative information for 7 years. For bankruptcy information, it is 10 years.
An unpaid judgment against you can be reported for 7 years or until the statute of limitations ends, whichever is longer. For criminal convictions, there is no time limit. The method for calculating the 7-year reporting period runs from the date the event occured.
Adding Accounts to A Credit File.
Your credit file may only show SOME of your credit accounts. Most national chain stores and bank credit cards are included in your credit file, but not all. For travel, entertainment, gasoline cards, local retailers, and credit unions, they usually aren’t included.
Denied Credit.
An “insufficient credit file” or “no credit file” has caused some to be denied credit. Yet, they have accounts with creditors. This is because they don’t appear in your credit file. Ask the credit reporting agencies to add this information to future reports.
Credit reporting agencies are not required to add creditors to your credit report. However, many will add verifiable accounts for a fee. If these creditors do not generally make reports to the credit reporting agency, the added items will not be updated in your credit file.
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