Credit report mistakes can drain hundreds of points off a credit score, and fixing them is not always simple, because the credit dispute system is mostly automated. Going to a credit bureau should be the first step to disputing an error, but involving the credit card company could be necessary. In some cases, a lawsuit is in order.
Dispute it with the Credit Bureaus
Dispute the errors with the credit bureaus as soon as possible. The mistake might be as simple as an incorrectly formatted update from the creditor, so the credit agency can resolve the problem relatively quickly. Consumers should still include copies of documents that back up their claim. Sending in a certified letter along with identifying information, such as a copy of a driver's license, and an explanation of the which items you dispute is the best way get a response, according to the Federal Trade Commission.
Go to the Credit Card Company
While the credit bureaus report credit histories for the world to see, going to the creditor often hastens the pace of a dispute and gets better results. The credit agencies only report what lenders tell them, so if there is an error on the creditor's end, the bureaus will continue reporting the same data. Speaking directly to the credit card company and offering evidence of a mistake might be the best route in this situation, and you may not have to write a dispute letter, according to Leslie McFadden of Bankrate.com.
Considerations
Either way, consumers should always file a dispute with the credit bureaus. Only when a consumer disputes an item with the credit bureaus does he receive his full rights to an accurate report under the Fair Credit Reporting Act. The agencies, for example, must complete an investigation into any dispute within 30 days, while the credit card company can take as long as it needs.
Potential Lawsuit
When the credit bureaus and credit card company continue to report an item the consumer believes to be false, she could go with a lawsuit. Lawsuits should be the last option, because it is the most expensive and time consuming. However, when dealing with anything that could tarnish a reputation, consumers should always have the threat of a lawsuit in the back of their mind. Thus it is good practice to document any interaction with a creditor or agency as soon as it happens.
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