correct your credit Report

Disputing Credit Report Errors

Your credit report contains a wealth of information about your financial history, your job, and even where you live. Three major credit bureaus or consumer reporting agencies (CRAs) compile and sell this information to other businesses to assist them.

They then use your credit reports to evaluate loan applications, credit card applications, insurance, employment, and other purposes permitted by the Fair Credit Reporting Act (FCRA). Because so many businesses rely on your credit report, you should make sure that the report is complete and correct.

Obtaining Your Credit Report

Individuals that has been denied credit, insurance, or employment because of information supplied by a credit bureau may obtain their credit report. The FCRA requires the company that you applied to must give you the bureau or CRA’s name, address, and telephone number. You may then contact the credit bureau within 60 days to obtain a free credit report. The three major 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.

You may also obtain a free credit report from all three credit bureaus through the following website: www.annualcreditreport.com

Make sure to print our and keep the copy of your credit report that you obtain. You can only retrieve your credit report once a year through this free website.

Correcting Errors in Your Credit ReporT

Under the FCRA, both the CRA and the specific organization that provided credit information to the CRA, such as a credit card company, have responsibilities to correct inaccurate or wrong statements or other information in your credit report.

Initially, you should inform the CRA in writing what information you believe is inaccurate. You should include copies (Not Originals) of documents that demonstrate the inaccurate information. Your letter should clearly identify the information that you dispute, provide an explanation for the dispute, request that the information be deleted or corrected, and provide your complete name and address.

You should also include in your letter a copy of your credit report with the items in question circled. Your letter may look something like the sample below. You should send your letter by certified mail, return receipt requested, in order to document what the CRA received. You should keep copies of all your letters and any other information that you send to the CRA.

Investigating a Credit Dispute

After receiving your dispute, CRAs initiate a reinvestigate of the disputed items unless the CRA determines that your dispute is frivolous. The CRA must also give to the provider all correspondences and other writings you sent to the CRA about the dispute.

The information provider is then required to investigate the dispute and forward the results of the investigation to the CRA. If the investigation reveals that the disputed information is in fact inaccurate, the information provider must notify all major CRAs in order to correct this information in your file.

If the investigation results in a failure to verify the disputed information, the information provider must delete it from your file.

Once it is determined that your credit report contains inaccurate information, the CRA must correct it. If an item is incomplete or vague, the CRA must complete it.

For example, if your file showed that at one point you were late making payments on an account, but failed to show that you were no longer late and in fact now paid on time, the CRA must show that your status is current. If your file shows an account that you are not responsible for, the CRA must delete it.

After the reinvestigation is complete, the CRA is required to give to you the results in writing and a free copy of your credit 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 it, and the CRA gives you written notice that includes the name, address, and phone number of the provider.

Also, if you request, the CRA must send notices of the corrections to your credit report to anyone who received your report in the past six months. Job applicants have the right to have the corrected report forwarded to any employers that have requested the applicants report within the last year for employment purposes.

If a reinvestigation does not resolve your dispute, you should ask the CRA to include your written dispute or statement in your file and include it in any future credit reports that it provides to any creditor or other seeker.

Equally important, you should also write the creditor or other information provider that you dispute an item. Again, include copies (Not Originals) that demonstrate the inaccurate information.

The creditor or other information provider usually maintains an address for complaints or disputes. If the provider then reports the information to any CRA, it is required to include a notice of your dispute. If you have correctly identified information that is inaccurate or inapplicable to you, the information provider may not use it again.

Accurate Negative Information in Your Credit Report

When your Credit Report is accurate as to negative information to you, it can generally stay on your report for 7 years. There are, however, exceptions to this general rule. These exceptions include the reporting of Bankruptcy information, which may be reported for 10 years.

Additionally, certain credit information can be reported without a time lime, such as information in response to an application for a job with a salary of more than $75,000, information reported because of an application for more than $150,000 worth of credit or life insurance, and criminal convictions. With respect to lawsuits or unpaid judgments against you, this information can generally be reported for 7 years.

Adding Accounts to Your File with the Credit Reporting Agencies

Your credit file may not include all your credit accounts. Although most national department store and major bank credit card accounts should be included in your file, not all creditors supply information to CRAs.

These creditors include some entertainment or magazine subscriptions, small retailers, and credit unions. You may have been denied credit because of an "incomplete, insufficient, or no credit file" even though you have accounts with creditors that are not part of your credit report. You should ask the CRA to add this information to future reports and make it part of your file.

While no law requires that accounts be added to a credit report, many CRAs will add verifiable accounts for a fee. You should, however, be aware that if these creditors continue to fail to report your information to a CRA, these added items will not be updated in your file and may not be accurate.

For More Information

The Federal Trade Commission (FTC) is a part of the Federal Government that assists the consumer. The FTC helps to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop and prevent fraud.

To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

Federal Trade Commission- Assistance for the Consumer

1-877-FTC-HELP www.ftc.gov

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 you in order to file a dispute regarding the following information in my credit file. I have also circled the disputed items on the attached copy of the credit report included with this letter. (Identify item(s) disputed by name of source, such as creditors or state or other court proceeding, 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 such as corrected or the item should be completed) to correct the information.

Enclosed are copies of (use this sentence only if you have specific documentation and please describe any enclosed documentation, such as payment records, release of judgments, bankruptcy filings, or other 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

Disclaimer: The information provided pertains to Chapter 7 and Chapter 13 consumer bankruptcy as it relates to this practice in Illinois. Bankruptcy law is generally federal law. Laws in Illinois are going to be similar (but not exactly the same) to laws anywhere in the country. However, this information only applies to Chapter 7 and Chapter 13 consumer debt and no other type of bankruptcy. Additionally, this information is not intended as a legal opinion or legal advice at all. The facts of every case are different and give rise to issues that may not even be discussed here. You are urged to consult an attorney who is licensed to practice in your area before you take any action.