Credit Reporting Problems

Credit bureaus make money by selling credit reports and credit scores. Their files sell regardless of whether they're accurate. In fact, they lose money when they have to delete personal credit report errors.

It may not be important for them to have your information correct, but it is very important for you. Your credit report determines your ability to make any major purchase. Data furnishers like credit card companies and finance companies use credit reporting as a way to force payment from you.

Need your free copy of your credit report? Federal law grants you the right to receive a copy of your consumer file for free, once a year. Use this FTC form to order your reports by mail.

What Should I Do About Credit Report Errors?

First, find out whether the errors appear on all of your reports or just some. The Fair Credit Reporting Act now requires that each credit reporting agency provide you a free copy of your credit report on an annual basis. Order your report from each of the credit reporting agencies (Equifax, Experian, and Trans Union) directly, using the above form.

Once you have copies of the credit reports, you should write a dispute about each item of information that is incorrect or incomplete. You MUST send this letter directly to the credit reporting agency that is maintaining the false information. Do not merely send it to the company responsible! Make sure to keep an exact copy of the letter you sent, signature and all. Be sure to send everything by certified mail, return receipt request.

Suing Credit Bureaus

If the credit reporting bureaus fail to fix the errors, or if the damage from the errors is already done, the most effective tool available to you is the Fair Credit Reporting Act. Using this statute, you can place the bureaus and your creditors on notice that they are lying about you and then fight back by bringing a lawsuit against them.

In order to start a case you will need all the documents that relate to dispute and all the documents that relate to your damages. You also need to gather any copies of your credit report that are available, including copies that you have received or that anyone else has received (including a mortgage broker, car dealer, or insurance agent). If you have received any letters denying you credit, you should gather those letters will help establish your damages.