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 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) © Copyright - www.deleteuglycredit.com
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