Correcting Credit Report Errors

It's been estimated that as many as 50% of credit files have errors contained in them. This is not surprising when you consider the industry collects more than 2 billion pieces of credit related information each month and generates more than 550 million credit reports on 180 million consumers every year. If you find errors in your credit report, complete the special form that is provided along with it. All of the three credit reporting agencies include this research or investigation request form.

You can also attach a letter or additional information to your completed form as well as any evidence that helps prove the error in your report, such as copies of receipts, canceled checks, correspondence between the creditor and yourself.

This letter will go a long way to creating the paper trail you might need later on, especially if legal action becomes necessary. Make sure when you send this letter it is sent via certified mail and ask for a signed receipt to guarantee that the right person sees it.

This letter will set in motion an investigation process from the three credit reporting agencies and they will try to respond within 30 days.

Once the credit bureau receives your letter, it will ask the creditor involved to verify the disputed information, or public record if applicable. If they find it truly was an error, or if they cannot verify the disputed information, by law they must delete the information from your credit record. However, if the credit bureau confirms the debt, and this is frequently done by a superficial investigation, they will let the report stand as it was. This does not mean the battle is over however. Credit bureaus tend to believe their customers word over the consumers.

If they have still not corrected the problem, you're ready for the second process. First see if you can find additional documentation to help further substantiate the claim. Make copies of it and send it along with another letter. Don't forget to copy all letters and correspondence as well as documenting phone calls and conversations and file it. Send the letter as before, i.e. certified mail with a return receipt requested. Next contact the creditor involved and ask that it correct the problem. Do this by certified letter as well. To make sure the creditor follows your instructions, ask for copies of the correction in writing. Another option to be considered for resolving this credit record problem is to call your state attorney general's office or Office of Consumer Affairs to see if they can help. Their answer will vary from state to state. Many states have consumer protection laws that are stronger than the Fair Credit Reporting Act of Congress. Contact them by writing with all of the pertinent information and follow up with a phone call.