Is There an Error on Your Credit Report?

By Brittany Munn

An error on your credit report can have consequences far beyond an incorrect number on a page. Inaccurate credit reporting can affect your ability to purchase a home, finance a vehicle, obtain a loan, rent an apartment, or secure favorable interest rates.

When a consumer discovers inaccurate information, the instinct may be to call the creditor or submit a quick online dispute. But when the error is significant, particularly when it has already affected the consumer financially, it may be worth speaking with an attorney before beginning the dispute process.

The Fair Credit Reporting Act (“FCRA”) provides consumers with rights when inaccurate information is reported about them. How the error is identified, documented, and disputed can become important if the problem is not corrected.

What Types of Credit-Reporting Errors Should You Look For?

Credit reports contain information provided by lenders, credit card companies, mortgage servicers, debt collectors, and other companies that furnish information about consumers.

Errors can take many forms, including:

·      An account that does not belong to you;

·      A debt belonging to someone with a similar name;

·      An incorrect account balance;

·      Payments incorrectly reported as late or missed;

·      An account reported as delinquent even though payments were made;

·      A paid or settled account that continues to show an incorrect balance;

·      An account incorrectly reported as open, closed, or charged off;

·      The same debt appearing multiple times;

·      Accounts resulting from identity theft or fraud; or

·      Other inaccurate information concerning the status or history of an account.

The important question is not simply whether something negative appears on your credit report. The question is whether the information being reported is accurate.

Obtain Your Credit Reports and Identify the Problem

If you believe there is an error, start by obtaining copies of your credit reports from Equifax, Experian, and TransUnion.

Do not assume that all three reports contain the same information. A creditor or other company may report information differently—or may report to only certain credit reporting agencies.

Review each report carefully and identify exactly what you believe is inaccurate. For example, if a mortgage account appears on your report, the issue may not be the existence of the account itself. The problem may be that the servicer reported a payment as late when it was timely, reported the wrong balance, or continued reporting a delinquency after an account was brought current.

Identifying the precise error is important because an effective credit dispute should address the specific information that is inaccurate and explain why it should be corrected.

Before You Dispute the Error, Gather Your Documentation

One of the most important things a consumer can do is preserve the documents showing that the reported information is wrong.

Depending on the situation, that may include:

·      Credit reports showing the inaccurate information;

·      Monthly account statements;

·      Bank statements or payment confirmations;

·      Loan documents;

·      Payoff statements;

·      Settlement agreements;

·      Correspondence with the creditor, lender, servicer, or debt collector;

·      Prior dispute results;

·      Emails, letters, or other communications concerning the account; and

·      Documents showing identity theft or fraud, when applicable.

Consumers should also preserve documents showing how the inaccurate reporting has affected them. If you were denied a mortgage, vehicle loan, apartment, credit card, or other form of credit, or if you received less favorable terms because of your credit report, keep those records as well.

The documentation available at the beginning of a dispute can be important both in attempting to correct the reporting and in evaluating whether the consumer may have a legal claim if the inaccurate information remains.

Why Consider Having an Attorney Prepare the Credit Dispute?

When I assist a client with an inaccurate credit-reporting issue, the goal is not simply to send a letter stating, “This account is wrong.”

The dispute should clearly identify what is being reported, what is inaccurate about it, and what evidence supports the consumer’s position.

That can mean reviewing the consumer’s credit reports and underlying account documents, identifying the specific reporting errors, and preparing written disputes to the appropriate credit reporting agencies. Supporting documents can then be included to demonstrate why the information should be investigated and corrected.

Creating a clear written record is particularly important because the dispute process may become part of a later FCRA claim.

If inaccurate information is not corrected, one of the questions an attorney may need to evaluate is what the credit reporting agency or furnisher was told about the error and what information was available when the dispute was investigated. A detailed written dispute helps create that record.

What Happens After an Attorney Sends the Dispute?

The FCRA establishes procedures for disputes concerning information appearing in a consumer's credit file. Once a dispute is submitted through the appropriate process, the credit reporting agency generally conducts a reinvestigation of the disputed information.

The company that furnished the information, such as a lender, servicer, creditor, or debt collector, may also become involved in investigating the dispute.

After the investigation is completed, the consumer should receive the results. At that point, it is important to compare the response and updated credit report with the original dispute.

Was the information corrected? Was it deleted? Did the company simply report that the information had been “verified”? Is the same inaccurate balance, payment history, or account status still appearing?

The answer can determine what happens next.

What If the Error Is “Verified” but It Is Still Wrong?

This is often where legal review becomes especially important.

A consumer may have documents demonstrating that information is inaccurate, submit a dispute explaining the problem, and still receive a response stating that the account has been “verified.” That does not necessarily mean the reporting is actually correct.

If inaccurate information remains after the dispute process, an attorney can review what was disputed, what documentation was provided, how the agencies and furnishers responded, and whether there may be grounds for further action under the FCRA.

Depending on the circumstances, the investigation and continued reporting of inaccurate information may raise legal issues.

Why the Dispute Process Matters to a Potential FCRA Claim

The FCRA provides consumers with important protections, but the sequence of events matters.

That is one reason I encourage consumers dealing with significant credit-reporting errors to consider speaking with an attorney before repeatedly submitting disputes on their own.

A potential FCRA case may involve examining the inaccurate reporting, the dispute that was submitted, the evidence supporting the dispute, the investigation that followed, and whether the inaccurate information continued to be reported afterward.

Starting with a well-documented dispute can make it much easier to determine what happened and what options may be available if the error is not corrected.

When Should You Contact an Attorney About a Credit-Reporting Error?

Consider speaking with an attorney if:

·      You have discovered information on your credit report that you know is inaccurate;

·      You have documents showing that an account balance, payment history, or status is being reported incorrectly;

·      You have already disputed an error but it remains on your report;

·      A credit reporting agency says inaccurate information has been “verified”;

·      A creditor, servicer, or debt collector continues reporting information you believe is

inaccurate;

·      Identity theft has resulted in accounts or debts appearing on your credit report; or

·      Inaccurate reporting has caused you to be denied credit, housing, financing, or favorable

credit terms.

You do not necessarily have to wait until you have submitted multiple unsuccessful disputes before speaking with an attorney.

An attorney can review the reporting and supporting documentation, identify the specific inaccuracies, and determine the appropriate way to present the dispute. If the information is not corrected after the dispute and investigation process, the attorney can then evaluate whether additional remedies may be available under the FCRA.

Do Not Ignore an Error on Your Credit Report

If something on your credit report is wrong, addressing it early can be important.

Start by obtaining your credit reports and gathering the documents related to the account. Before submitting repeated online disputes or spending months going back and forth with a creditor or credit reporting agency, consider having an attorney review the issue.

At EQUES Law Group, we assist consumers with inaccurate credit-reporting matters, including reviewing credit reports and supporting documentation, preparing written credit disputes, evaluating the responses received from credit reporting agencies and furnishers, and determining whether further action may be available under the Fair Credit Reporting Act.

If you believe inaccurate information is appearing on your credit report, we can help you understand the dispute process and your legal options.