Credit Report Errors
Are Your Credit Reports Accurate? If Not, Find Out How To Fix Them!
You have the right to have accurate and truthful credit reports. This is not something that would be nice. This is not something that would simply be useful.
It is something that you are entitled to because you don’t have a choice on whether there will be a credit report on you. That’s a done deal.
But the law requires that your credit report either be accurate, or if it is not, that the responsible parties investigate the situation and then make the information accurate and truthful.
The primary law that will be helpful to Alabama consumers is the federal law — Fair Credit Reporting Act (FCRA).
This law not only gives you the right to accurate credit reports, but it also gives you the tools to fix things if your credit report is false.
The reason it is so important to have correct credit reports is that false information can raise your interest rates you pay, increase your insurance costs, prevent you from getting a job or promotion or security clearance you deserve, prevent you from getting housing, etc.
Serious stuff.
Credit repair — fixing the false stuff — takes time and effort. But it is worth it.
So, if you are ready to do some work — either on your own or with an attorney — come with me while we go for a little journey on how to correct false information on your credit reports.
First, pull your credit reports to see what is being reported. I know this sounds obvious but so many people assume. Assume everything is ok on their credit reports when there are errors. Assume everything is bad when it is not. Assume they know what is being reported when none of us know that unless we look at our reports.
Unless you pull your reports, you are guessing.
A few pointers on pulling your credit reports.
Pull directly from the actual credit reporting agencies (Equifax, Experian, Innovis, and Trans Union) — do not buy from resellers and do not get “three in ones” as these may not contain accurate information.
The best place to pull your free reports is from Annual Credit Report or you can call them at 1-877-322-8228. You can watch a video here that discusses obtaining your free credit reports.
After you get your credit reports, you’ll want to take a look at them . . . .
Second, review your credit reports to see if the infomation on the reports is accurate or not.
You look at your reports to see if the information on there is accurate. If it is, then congratulations! Now, you’ll just need to check periodically to make sure everything stays accurate.
But, if like most people, you have false information on your credit reports, you’ll want to take action to fix your credit reports.
So, what is false information?
Well, it is any information that is not accurate.
It could your address or your name or your date of birth.
It could be an account that you never opened up that is reporting on your credit report. This could be because of Identity Theft or because of a “mixed-merged” file where your credit file has been mixed up with another credit file of someone with a similar name.
It may be a debt that has been discharged in a bankruptcy, but it is still showing up as being owed, which is false.
It may be an account that you settled, but it is showing on your credit report as if you still owed the debt when, in fact, you do not owe anything on it.
Basically, anything that is not true — the account itself, the amount, late notations when you were not late, etc. — should be noted so you can then dispute these false items by sending a letter. The letter can, and often should, go to the credit card company or the debt collector or the mortgage company. But it must go to the credit reporting agency or agencies if you want the protection and rights of the FCRA to apply. Here’s how you do that . . . .
Third, dispute in writing, by certified mail, to the credit reporting agencies, all errors on your credit reports.
I know you can do it online. The credit bureaus want you to dispute online. Don’t fall for it.
Dispute it the good old fashioned way of a letter sent by certified mail, return receipt requested.
There are many reasons for this but the best one is this is your greatest form of proof that you are taking the false entry on your credit report seriously and want to fix it. And you want proof that Equifax, Experian, Innovis, and/or Trans Union received it.
They love the . . . circular file cabinet (trash) if you don’t send it certified. Online disputes make it hard to attach documents.
Just trust us on this one — send the letters certified and get the little green card back showing that the agency received it.
In your letter, identify yourself so they know who you are.
Identify the wrong information.
Tell the bureaus why it is wrong.
Give them any proof you have that the information is wrong.
Send a copy, again certified mail, to the company reporting the bureaus the false information.
Here’s an example. A consumer went through bankruptcy and received a discharge on a Chase home mortgage.
Gave up the house in the bankruptcy.
Everyone agrees no more money is owed on the Chase account — it has been discharged.
But Chase (the “furnisher” of information) is reporting to Equifax that the debt is still owed. Tens of thousands of dollars are currently owed.
Completely false.
The consumer disputes it. Certified mail.
To Equifax and to Chase.
Identifies herself.
Identifies the debt.
Encloses the bankruptcy papers that prove the debt was discharged.
The idea is to give the bureaus and the furnisher enough information so they can fix the problem. And if they don’t fix the problem, then they have some explaining to do.
But to figure out if they fixed it we must first look at the report that comes back from the bureaus — usually about thirty days after we dispute. . . .
Fourth, review the results of the investigation (or lack thereof) by the credit reporting agencies.
OK, now you have the results in your hand from each agency.
Normally they will do one of the following:
**Delete it;
**Update/modify it; or
**Verify it (keep it just the way it was).
Now if it is false information, it should be modified or deleted.
If it has been corrected (or deleted, if appropriate), then congratulations.
But if not, then it is time to take further action . . . .
Finally, if the errors remain, take the appropriate action including suing the credit reporting agencies and the companies who refused to correct the false information on your credit reports.
You find yourself with the false information still on there. What do you do?
You can dispute it again. Maybe this time it will work?
You can do nothing. Seems foolish to let false information stay on your credit report.
Or you can sit down with a lawyer to see if you can sue the responsible parties.
Often we sue both the furnisher (the one who gave the false information) and we sue the credit reporting agency or agencies. We sue them for false reporting and for negligently doing an investigation. Because, remember, we gave them enough information so that the only reasonable conclusion is the information is false. [Sometimes the furnisher has the information and you don't need to provide it, but often it is good to give as much information as you can, even though the bureaus and furnishers will normally ignore your information....]
The FCRA — Fair Credit Reporting Act — allows your attorney to recover fees and lawsuit expenses from the Defendant furnisher and/or credit reporting agency; allows you to recover damages; and may allow you to recover punitive damages. A wonderful result of a proper lawsuit is the furnishers and credit reporting agencies will normally fix your credit reports quickly. Amazing that it takes a lawsuit to get a human being to actually look at the information and see that it is wrong but that is the world we live in….
So, my suggestion is if you have false information that you properly disputed and it is still on your reports — sit down with a consumer attorney who knows how to sue the creditors or collectors and the bureaus.
What to do next?
If you live in Alabama, you can call us at 205-879-2447 to set up a free consultation. Or you can contact us through our website by filling out the contact form.
If you want more information, you can check out the articles, blog posts, and videos we have here on the website.
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