Don’t get frozen out by credit reporting errors

When was the last time you checked your credit report? Many people do not check their credit reports until they are attempt to get financing and find that credit is either denied or offered at less than favorable terms. Credit reporting errors can have significant consequences. Fortunately there is something you can do about it.

Dispute the error

The first thing to do is to dispute the error. The Federal Trade Commission advises people to send the credit reporting agency a letter, specifying what you are disputing along with documentation that supports your position. Credit reporting agencies are required to respond within 30 days. If another entity is responsible for submitting an inaccurate credit report about you, the credit reporting agencies are required to send it to them.

Credit reporting errors are not uncommon. According to a 2012 Federal Trade Commission study, one in five people who had errors on their credit reports were able to resolve them after disputing them.

You should also dispute the error with the entity that reported you, along with records supporting your position. They are also required to notify the credit reporting companies of the error and ask them to correct your credit report.

You may also utilize the Consumer Financial Protection Bureau to lodge your complain. Marketwatch reported that in 2016, nearly a quarter of all complaints filed with CFPB were related to credit reporting errors. Nearly all of them were attributed to the three major credit reporting agencies responsible for tracking consumer credit: Equifax, TransUnion and Experian.

Keep records

It sounds easy on paper, but sometimes resolving credit disputes is anything but easy. Keep copies of your credit reports, your disputes and any responses you receive.

What to do if you cannot get the error removed?

It can take a long time to get the credit repaired. You may have find yourself wrestling with either the credit reporting agencies or an informant who continually reports you to the credit reporting agencies. A failure to rectify a credit reporting error is a violation of the Fair Debt Collection Practices Act. You can take legal action to have these errors corrected and get justice.