Disputing Credit Report Errors

Someone’s credit report contains a lot of information regarding someone’s bill-pay history, arrest history, and other court-related history. Having a lot of negative information on your credit report can strongly affect whether or not a company will grant you credit. People with high credit scores don’t have to worry about this as much, since they have good credit. However, sometimes a mistake will be made and an inaccurate (usually negative) piece of information gets placed on their credit report. Hope is not lost though, as this mistake can be fixed.

Disputing Inaccurate Credit Report Information 

As stated in the Fair Credit Reporting Act, both the creditor and the credit reporting agency must investigate and (if proven inaccurate) fix any incorrect information on your credit report. However, the companies will not begin an investigation on their own. That’s why it is very important to obtain a copy of your credit report and look for mistakes. If you find something inaccurate on your credit report, you are the one who is responsible to begin the dispute. You must do this for the credit dispute process to begin.

The Dispute Process

i.            You Contact the Credit Reporting Agency: In writing, inform the credit reporting agency with the information that you believe is incorrect. Explain in details why you think the item is incorrect and provide any copies of documents that could be used as evidence. Be sure to make a copy of the dispute letter before you send it.

ii.            The CRA Begins Investigating: Once the credit reporting agency receives your dispute letter, they must begin the investigation within 30 days. The credit reporting agency will forward the letter and all relevant evidence to the company that first reported the negative information. The company must then investigate and report all information back to the credit reporting agency.

iii.            The Results Are In: Step three splits two ways. This is where the dispute is reported as either true or false.

• Dispute is True & Information is Inaccurate: If the company finds that you were correct in identifying the inaccurate information, it must notify all three credit reporting agencies to fix the information on your report. The original credit reporting agency will contact you in writing with the results. Along with the letter, they will provide you with a free copy of your credit report to show you that the item has been removed.
• Dispute is False or Unsolved: If the company finds that the information on your report was true or if the investigation remains unsolved, the credit reporting agency will notify you in writing with the results. You are given the option of keeping a report of the dispute in your credit history so potential creditors may see that you believed the information was incorrect.