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Fixing Credit Report Errors and Steps Toward Dispute
Escalation
Correcting inaccurate items on your credit report is very easy
when the normal dispute channels work. When your requests are
not responded to adequately, it can create a very stressful
situation. In fact, many consumers find that they are having to
put off major credit purchases because they are having such
trouble correcting credit report inaccuracies. To help deal with
the credit bureaus and to maintain your sanity, we recommend the
following approach:
- Order your credit report from each of the three main
credit bureaus at least 60-90 days prior to any major credit
purchase. The more time you have, the more opportunities you
will have to correct inaccurate items. We recommend using
the free annual credit report service that was mandated by
Congress through the Fair and Accurate Credit Transactions
Act of 2003 (FACT Act). You can call (877) 322–8228 or go
online at
www.annualcreditreport.com to request your three
credit reports all at once.
- Review your credit reports in full. If you do not understand
it, feel free to contact a credit counseling agency for
help. Many have no fee for an initial consultation, and they
can review your credit reports with you. If you feel
comfortable, review it yourself or with a friend you trust.
Either way, you will likely need the confirmation number on
the first page in order to dispute items in your report. If
you are still logged into your online account through the
annual credit report system, then you can dispute the items
there. You are limited to a couple of sentences to explain
the reasons for your dispute, so be precise. It takes less
than a minute to complete your dispute.
- You will normally receive a revised credit report from
each credit bureau where a dispute was filed in about 30
days, although it can sometimes take up to 6 weeks. Review
the credit report to make sure that the disputed item is
either removed or corrected to reflect an accurate account
history. If the item was not corrected to reflect an
accurate record of your account, then you should proceed to
the next step. Re-filing the same dispute through the same
channels rarely will produce a different result!
- Notify the bureaus of your dissatisfaction with their
response. You can file an
online complaint
or you may write to them at this address:
Annual Credit Report Request Service
PO Box 105283
Atlanta, GA 30348-5283
- We recommend mailing your complaint rather than using the
online form. This way, you may include detailed information
about your dispute along with the complaint. Prepare a typed
(not handwritten) letter that explains your dissatisfaction
with their response, and then offer a specific account of
what the nature of your dispute is. You will want to list
the disputed item as it appears on your credit report, and
then list exactly how the item should appear. If it should
be removed entirely, then state that clearly. Attach copies
of any and all documentation that proves your case. Your
complaint will be considered more important if you include
these items at the bottom of your letter, as they indicate
your willingness to escalate your complaint to the proper
authorities:
cc: Federal Trade Commission
(your state) Attorney General
You may also consider listing your attorney as a recipient
of your letter.
- Usually, mailing copies to these government agencies is
not necessary, but you should keep copies on hand in case
your request is ignored. If you do not receive the proper
response, then file formal complaints with those agencies.
Make sure that the nature of your dispute is serious enough
to warrant escalation at this point. Individual complaints
are not always investigated, but several similar complaints
that indicate a pattern of abuse will gain the attention of
investigators.
- Wait for the response. This could take 45 days or more
depending on the speed of each recipient's response. Keep
copies of all correspondence and note any verbal
conversations that you had, including the name, date, time
and representative that you spoke with, along with a summary
of the discussion.
- If you still do not have the results that you deserve,
consider legal action. A qualified attorney can tell you how
solid your case is based upon your explanation and
documented proof to support your claim. Remember that legal
action can be expensive, so evaluate the benefit of getting
the item corrected versus the cost of legal action. In many
cases, these disputes can be settled without going to court.
If you have been unfairly penalized through higher rates as
a result of willful misconduct or incompetence, be prepared
to prove what their blunder has cost you.
- Once you have improved your credit report, preserve your
good record. You should continue to order your free credit
report from each bureau every year to look for inaccuracies
and identity theft. Also, make sure that you keep your
current accounts in good standing by making all payments on
time and eliminating credit card balances and other higher
interest debt.
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