Whenever you find inaccuracies in your free annual
credit report,
take time to dispute the information and work to get it corrected on
your credit report. Fair Credit Reporting Act protects you when you
take the initiative to dispute the information.
Act necessitates that when some one dispute the information, all
credit reporting agencies have to respond with an investigation of your
creditors. No credit reporting agency is exception to this.
In
case, if any information disputed is found to be inaccurate, it will
either correct within thirty days or removed from your credit report.
The onus of showing the proof is lying with the creditor. If the proof
is not forthcoming that their information is correct, it will be seen
and considered as inaccurate. The inaccurate information has to be
corrected.
What Might Need to be looked and Disputed?
Look out for the following common areas that mistakes are generally found in credit report:
Inaccurate details- Inaccuracies
can come in any place. You may not agree with the dates, the amounts,
the reported late payments etc. That is why one needs to maintain the
backup information so that one can really cross check. In finances, the
records speak everything. Any back up information like cancelled checks
or statements that show when the checks were cashed will help you in
more than one way to be able to get the late notation removed.
Old, outdated information- on your credit report, negative account
information can only be reported for seven years after the first
delinquency; except Chapter 7 bankruptcy.
Fraudulent Accounts- You may be victim of identity theft. Look
carefully for accounts appearing on your credit report that you didn't
open. Definitely look out for such accounts. Alternatively, someone
with a name similar to yours has been mixed up with your information.
In all cases, be careful.
Filing a Credit Dispute:
Once you find some information is disputable, by all means file a
credit dispute. You should file your dispute in writing by mailing a
letter to the credit reporting agency or using their online form for
filing disputes.
30 days are provided to the credit reporting agency by the "The Fair Credit
Report Act" to investigate the dispute claim and come to a conclusion
on the situation. Once the decision is taken, you will receive the
written results and if any changes have been made, a free copy of your
credit report
Make a photo copy
of your credit report, enclose and mail it with your letter as this is
the best way to file a dispute. For making their life easier and making
the case systematic, circle the dispute on the credit report and number
it. In your letter, reference each number for each piece of information
you dispute with the reasons on why you are disputing it. The complete
details you provide the better it would be for you as it helps faster
processing. For fast processing, be sure to include your full name and
mailing address, date of birth, social security number, name of
creditor and the account number of the item you are disputing. Don't
forget to sign as there would be no validity without a signature.
Alternative Options for Dispute
Alternatives still exist. Instead of contacting the credit reporting
agency, contact the creditor directly. The FCRA states that the
disputed information need to be reported by the creditor to the credit
reporting agency, including a note that you are disputing the
information if you contact a creditor and indicate that they have
reported information incorrectly to your credit report. In any case, if
the information is found to be inaccurate or an error, it must be
corrected on your report or removed.
What are the alternatives if the Dispute Doesn't Result in a Settlement?
Higher authorities also exist. A coupla options exist.
Don't assume that it is always simple and easy to get a settlement
on your dispute. After following the dispute process and the results
are unsatisfactory to you, you can then file a dispute with the
National Consumer Assistance Center. Having the case reinvestigated may
or may not have you the item deleted off your credit report. It still
requires you to have documentary evidence to have the credit bureaus
scratch out any information. You may find the disputed information may
reappear due to the instance of the creditor, unfortunately, even if
you are successful in having items removed from your credit report.
If you believe the credit bureau has violated the FCRA, contacting
your Attorney General's Office is the last option. You are able to sue
the creditor / credit bureau in either the state or federal court.
Should you win, all of your attorney fees and damages would eventually
be reimbursed to you.
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