How to Dispute Errors on Your Credit Report and Protect Your Rights Under the FCRA
Are you concerned about errors on your credit report dragging down your credit score? Inaccurate information on your credit report can make it harder to get approved for loans, credit cards, apartments, and more. Fortunately, you have rights under the Fair Credit Reporting Act (FCRA) to dispute inaccurate information and get it corrected or removed. In this article, we’ll walk you through the credit report dispute process step-by-step so you can clean up your credit file and improve your financial standing.
What is the Fair Credit Reporting Act?
The Fair Credit Reporting Act (FCRA) is a federal law that regulates how consumer reporting agencies (CRAs) handle your credit information. The FCRA gives you important rights, including:
- The right to be told if information in your credit report has been used against you
- The right to know what is in your credit report, especially the information contained within it.
- The right to dispute incomplete or inaccurate information
- The right to have inaccurate, incomplete, or unverifiable information removed from your report
If a CRA, data furnisher, or entity taking adverse action against you based on your credit report violates the FCRA, you may be able to sue for damages. Our experienced FCRA attorneys can review your case and advise you of your rights.
What Kinds of Errors Commonly Appear on Credit Reports?
Common credit report errors include:
- Accounts that don’t belong to you (due to identity theft or mixed files)
- Inaccurate account status (e.g. showing an account as late or in collections when it’s not)
- Incorrect balances or credit limits
- Accounts incorrectly reported as closed by the consumer can be rectified if you dispute with the consumer reporting agency.
- Duplicate accounts listed multiple times
- Outdated negative information (most negative info should be removed after 7 years)
These errors can significantly damage your credit, so it’s important to check your credit reports regularly and promptly dispute any inaccurate information you find.
How Do I Get My Free Credit Reports?
You are entitled to a free credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once every 12 months. The easiest way to get your free reports is by visiting AnnualCreditReport.com. Due to the COVID-19 pandemic, the bureaus are also offering free weekly credit reports through December 2023.
Be wary of other sites claiming to offer “free” credit reports or scores – they often require you to enter payment information and sign up for subscription services. Stick with the official site to avoid scams. Also it is best to avoid any credit monitoring services, even those offered by the credit bureaus. They usually involve arbitration provisions, which will keep your case out of court.
What is the Credit Report Dispute Process?
If you find an error on your credit report, follow these steps to dispute it:
- File a dispute with the credit bureau. You can do this by phone, online, or by mail. We recommend that you dispute it by mail, and send your dispute letters by certified mail. Draft a detailed letter and include copies of your driver’s license, a current utility bill, any supporting documentation.
- The credit bureau must investigate your dispute, forward all relevant information to the data furnisher, and report the results back to you within 30 days (45 days in some cases).
- The data furnisher must also investigate the disputed information and report back to the credit bureau. If the information is found to be inaccurate, incomplete, or unverifiable, it must be corrected, blocked, or deleted by the credit reporting agencies.
- The credit bureau must provide you with written results of the investigation and a free copy of your updated credit report if changes were made. If the investigation does not resolve the dispute, you have the right to add a statement to your credit file explaining the dispute.
It’s best to submit your dispute in writing by certified mail so you have proof of when it was sent and received. Keep copies of everything you send for your records. Also, if the inaccuracy remains, keep disputing it, don’t give up.
Do I Need to Dispute with All Three Credit Bureaus?
Sometimes information appears on one or two of the bureaus and not all three. The three major credit bureaus do not share dispute information with each other. So if you find the same error on reports from multiple bureaus, you will need to file a separate dispute with each one.
However, if the error originated with the data furnisher rather than the credit bureau itself, disputing with the furnisher directly may resolve the issue across all your reports without needing to dispute with each bureau individually. While it is a good idea to try to resolve it with the furnisher, they do not have an obligation under the FCRA to correct unless they receive your dispute from a credit bureau.
What if the Credit Bureau Says My Dispute is “Frivolous”?
In some cases, a credit bureau may determine that your dispute is “frivolous or irrelevant.” This often happens if you try to dispute accurate negative information or if your dispute is overly broad without identifying specific errors.
If this happens, the bureau is required to notify you within five business days. You can either provide additional information to support your dispute or refile a more specific dispute.
Credit bureaus cannot simply ignore “frivolous” disputes without notifying you, and cannot label a dispute frivolous simply because you previously filed a similar dispute. If you believe a credit bureau improperly dismissed your dispute, contact a consumer protection attorney to discuss your options.
Can I Sue for Damages Under the FCRA?
Yes, the FCRA allows consumers to sue CRAs, data furnishers, and other entities for certain violations. Potential damages include:
- Actual damages (e.g. denial of credit, higher interest rates, emotional distress, etc.)
- Statutory damages up to $1,000 per violation
- Punitive damages in cases of willful noncompliance
- Attorney fees and court costs
However, to have a case, you must have suffered real harm as a result of the FCRA violation. Merely finding an error on your credit report is generally not enough on its own to justify a lawsuit unless that error caused you to be denied credit or otherwise harmed you in some concrete way. You must have disputed it to be able to file a lawsuit.
If you believe your FCRA rights have been violated, it’s best to Consult with an experienced attorney who can help you dispute the information in your credit report. who can evaluate your case and advise you of your options. Choose a lawyer who focuses on consumer protection law and has a track record of successfully resolving FCRA cases involving credit history.
How Can I Avoid Credit Report Errors in the Future?
While you can’t control what others report about you, there are steps you can take to minimize errors and catch problems early:
- Regularly check your credit reports for errors, especially before applying for new credit
- Consider signing up for a credit monitoring service to alert you to changes in your credit file
- Keep good records of your credit accounts and payments so you can easily spot discrepancies
- Place a security freeze on your credit reports to prevent new accounts from being opened in your name without your consent
Remember, no one cares more about your credit than you do. Being proactive and disputing errors promptly can save you countless headaches down the road, especially when engaging with credit reporting agencies.
Key Takeaways on Disputing Credit Report Errors
- You have the right to dispute inaccurate or incomplete information on your credit reports under the FCRA
- Common credit report errors include accounts that don’t belong to you, inaccurate account status, and outdated negative information contained in the report.
- You can get free credit reports from all three major bureaus through AnnualCreditReport.com
- To dispute an error, file a written dispute with the credit bureau and include supporting documentation
- Credit bureaus have 30-45 days to investigate disputes and must remove information found to be inaccurate, incomplete, or unverifiable, based on the information provided by the consumer.
- If an FCRA violation caused you real financial or emotional harm, you may be able to sue for damages
- Regularly monitoring your credit and disputing errors promptly is key to maintaining a healthy credit profile
If you have additional questions about disputing credit report errors or believe your FCRA rights have been violated, contact Clanton Law Office for a free case review. Our team of experienced consumer protection attorneys serves clients in Texas, New Mexico, Nebraska, and Wisconsin, and helps them dispute the information on their credit reports. While we never represent banks, credit bureaus, or debt collectors, we are committed to aggressively advocating for consumers and helping them assert their rights. Don’t let credit report errors hold you back – take action today!
Frequently Asked Questions
Q: What is a credit report and why is it important?
A: A credit report is a summary of your credit history that is used by lenders to evaluate your creditworthiness. It is important because it influences your ability to get credit and the terms you receive.
Q: How can I dispute errors on my credit report with the bureaus?
A: You can dispute errors by submitting a dispute form provided by the credit bureau or by sending a dispute letter that includes sufficient information about the inaccuracies.
Q: What should I do if I find inaccurate information on my credit report?
A: If you find inaccurate information on your credit report, you should notify the consumer reporting agencies and provide details of the inaccuracies. A written dispute is the best way to prove the dispute was received and what you sent the bureaus.
Q: What happens after I dispute inaccurate information on my credit report?
A: When they receive a consumer dispute, credit bureaus are required to investigate your dispute and correct any errors within a reasonable amount of time. In the case of disputed accuracy, they have 5 days to forward you dispute to the furnisher that is providing the information and they must forward all the information you provided.
Q: How long does the credit bureau have to respond to my dispute?
A: Once they receive notice of a dispute and information from the consumer, a credit bureau must respond to a consumer’s dispute within 30 days of receiving it.
Q: What if the information on my credit report cannot be verified?
A: If the information on your credit report cannot be verified, the credit bureau must remove it from your report.
Q: Can I dispute errors on my credit report online?
A: Yes, you can usually dispute errors online through the websites of the three nationwide credit bureaus. However, we do not recommend it. You will probably be required to create an account that has a arbitration agreement, then when you can actually enter your dispute, there is a significant limitation to the information you may enter, finally there is no proof that you disputed it or the content of your dispute.
Q: What should I include in my dispute letter?
A: Your dispute letter should include a detailed statement of the dispute including identifying all the information contained in a consumer report that is inaccurate, all supporting documentation that proves the information is inaccurate, a copy of your driver license and a recent utility bill to prove your identity. In your letter you must provide sufficient information to investigate, in other words, you can simply say “This is wrong, correct it.” You need to tell them why the information relating to you is wrong, why you think it is there, and what they can do to fix it.