What If There Is An Error In Your Credit Report?

Under the Fair Credit Reporting Act, FCRA, you have rights as a consumer that entitle you to accurate reporting of your credit history. Both the credit reporting agency and the entity providing information about you are responsible for the accuracy of the information on your report. The Federal Trade Commission, or FTC, is the federal agency tasked with enforcing the FCRA, and can provide some assistance in correcting errors on your credit report.

Write the Agency

The first step to take if you identify an error on your credit report is to inform the reporting agency, in writing, disputing the error. Include with your letter a copy of any documents that supports your contention that the report is in error. An error may be the amount due on an account, details about late payments or delinquent accounts, or charges you never made. There may be one or more errors in your report, in which case it may be helpful to include a copy of your credit report with individual items with mistakes circled. You should also obtain your report from the other major reporting agencies to see if they've duplicated the error.

Investigation

Under federal law, the reporting agency has 30 days to investigate the charge once it receives your letter unless it is clearly a frivolous claim. In doing so, the credit reporting agency will contact the creditor providing the information and attempt to ascertain the facts. The credit reporting agency must provide you with a copy of its findings along with the name and address of the relevant information of the providers. The agency must also provide a free copy of your credit report if the error is corrected, and reports for up to the previous six months upon request.

Write The Creditor

Even though the credit reporting agency will contact the creditor, you should not wait to contact them yourself, in writing. Send a letter similar to the one you sent to the reporting agency disputing the charge. This then forces the creditor to report your dispute of the charge to any reporting agency to which it provides information. Include with your dispute letter copies of any evidence you sent to the reporting agency. If the creditor determines that the disputed information is in error, it must submit a report to all three major credit reporting agencies.

Identity Theft

If the error on your credit report is a charge you didn't make, it may be a sign of identity theft. If you suspect you've been the victim of identity theft, you should immediately call the reporting agency and place an initial fraud alert on your account. This will trigger all three major credit reporting agencies to send you a free copy of your credit report. It will also prevent anyone from opening a new line of credit in your name for 90 days, but won't prevent usage of existing accounts. You may have to close down an account that has been tampered with and file a police report. Filing an identity theft report with the FTC can facilitate the process with the police.