Disputing errors in your credit report

A lot of credit reports do contain inaccurate information and errors. Consumers have the right under both federal and state statutes to dispute errors in their credit reports and the right to have them corrected. The Fair Credit Reporting Act (15 USC 1681 et seq.) provides protection under the law to consumers to challenge and to see to the correction of negative information in their credit reports.  For information on the law in your particular state, you will need to contact your state's consumer protection bureau or office of the Attorney General. It is required of national credit bureaus to have a toll-free number in order to enable consumers to contact them with concerns and questions. In addition to this, credit reports must also provide an address to allow consumers to request an investigation of inaccurate information.

How to dispute errors

The best way to dispute errors in your credit report is to document everything by writing. Write letters to the Credit Reporting Agencies (CRA). Letters should include your complete name and address. They should clearly identify each item in the report you are disputing, explaining why you dispute the information, stating the correct facts, and requesting a correction or complete deletion of the offending record.

Once you have notified a CRA of your dispute, both federal and state law allow for 30 business days for an investigation. The bureau must consider all the relevant evidence you give it, and corrections must be made if they are true. If the CRA cannot verify the negative information, it must be deleted from your file.

You are also entitled to receive a free copy of your corrected report. You may also further ask the credit bureau to send corrected reports to anyone who has requested your file in the past six months, as well as to anyone who has requested it in the last two years in relation to employment. Remember to always make copies of all correspondence between you and the CRA.

Some companies have made it easy for you to dispute errors in your credit report by providing letter formats that you can print and just fill out the relevant information and mail to the CRA when you order copies of your credit reports.

Sample Dispute Letter

Date
Your Name
Your Address, City, State, Zip Code
Complaint Department

Name of Company
Address
City, State, Zip Code

Dear Sir or Madam:

I am writing to dispute the following information in my credit file. I have circled the items I am disputing on the attached copy of the report I received.

This item (identify item disputed by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.) is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why). I am requesting that the item be removed (or request another specific change) to correct the information.

Enclosed are copies of (use this sentence if applicable and describe any enclosed documentation, such as payment records, court documents) supporting my position. Please reinvestigate this these matters and (delete or correct) the disputed items as soon as possible.

Sincerely,
Your name

Enclosures: (List what you are enclosing.)

Something to remember

One thing to bear in mind is that:

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The contents of this website are for informational purposes only and do not constitute an attempt at providing financial advise. Please consult a competent and reputable financial advisor if you are seeking financial advice.