Credit Report Disputes: Fixing Errors and Protecting Your Score

Credit report errors affect about 1 in 5 consumers, and these mistakes can cost you thousands in higher interest rates, denied applications, and lost opportunities. The Fair Credit Reporting Act gives you powerful rights to dispute and correct inaccurate information. For official guidance on disputing credit report errors, visit the Consumer Financial Protection Bureau's credit reporting resources.

FCRA Damages: If credit bureaus or furnishers violate the FCRA by failing to correct errors, you may be entitled to actual damages, statutory damages up to $1,000, punitive damages, and attorney fees.

Common Credit Report Errors

Identity Errors

  • Wrong name or name variations
  • Incorrect address history
  • Wrong Social Security number
  • Accounts belonging to someone else
  • Mixed files with similar names

Account Errors

  • Wrong balance amounts
  • Incorrect payment history
  • Wrong account status (open vs. closed)
  • Duplicate accounts
  • Incorrect credit limits
  • Wrong account opening date

Negative Information Errors

  • Paid debts still showing owed
  • Accounts incorrectly in collections
  • Bankruptcies older than 7-10 years
  • Judgments you didn't owe
  • Late payments reported incorrectly

Check All Three Bureaus: Errors may appear on one, two, or all three credit reports. Check Equifax, Experian, and TransUnion - and dispute with each one that has errors.

Getting Your Credit Reports

Free Annual Reports

  • AnnualCreditReport.com (official site)
  • One free report per bureau per year
  • Currently offering free weekly reports
  • Don't pay for reports you can get free

Additional Free Reports

  • After any adverse action
  • If unemployed and seeking work
  • On public assistance
  • Fraud victim
  • Dispute resolution follow-up

What to Review

  • Personal information accuracy
  • All listed accounts
  • Payment history
  • Public records
  • Inquiries
  • Collections accounts

The Dispute Process

How to Dispute

  • Online: Each bureau has dispute portal
  • By mail: Send certified letter
  • By phone: Not recommended (no paper trail)
  • Written disputes create better documentation

What to Include

  • Your contact information
  • Each item being disputed
  • Why information is wrong
  • Supporting documentation
  • Request for correction or removal

Bureau Response Requirements

  • Must investigate within 30 days
  • Must contact information furnisher
  • Must review all provided evidence
  • Must notify you of results
  • Must provide free updated report

Send to Furnisher Too: Also dispute directly with the company that reported the information. They have the same duty to investigate and correct errors.

Disputing with Furnishers

Who Are Furnishers

  • Banks and credit card companies
  • Collection agencies
  • Mortgage lenders
  • Auto lenders
  • Utility companies
  • Landlords

Furnisher Obligations

  • Must investigate disputes
  • Must correct inaccurate information
  • Must report corrections to bureaus
  • Cannot report known inaccuracies

Advantages of Direct Dispute

  • Gets to source of error
  • May be faster resolution
  • Creates additional documentation
  • Establishes FCRA violation if ignored

When Disputes Are Rejected

Common Reasons

  • "Verified as accurate" (often inadequate investigation)
  • Marked as frivolous
  • Insufficient information provided
  • Previously investigated same issue

Your Options

  • Submit new dispute with more evidence
  • Escalate to bureau management
  • File CFPB complaint
  • File state AG complaint
  • Add statement to your file
  • Consult FCRA attorney

Adding Consumer Statement

  • 100-word statement of your dispute
  • Must be included with future reports
  • Better than nothing but limited effect

"Verified as Accurate" Red Flag: If they say "verified" but you know it's wrong, the investigation may have been inadequate. This can be grounds for an FCRA lawsuit.

Your FCRA Rights

Key Protections

  • Right to accurate information
  • Right to dispute errors
  • Right to know who accessed your report
  • Right to sue for violations
  • Right to free reports

Violation Damages

  • Actual damages: Denied credit, higher rates
  • Statutory damages: $100-$1,000
  • Punitive damages: For willful violations
  • Attorney fees: Paid by defendant

When to Sue

  • Errors not corrected after proper dispute
  • Reinsertion of deleted items
  • Inadequate investigation
  • Significant damages from errors

Identity Theft and Credit

Fraud Alerts

  • Initial alert: 1 year
  • Extended alert: 7 years (with ID theft report)
  • Active duty alert: 1 year
  • Contact one bureau, others notified

Credit Freeze

  • Blocks new account openings
  • Free to place and lift
  • Must freeze at each bureau
  • Temporary lift for legitimate applications

Disputing Fraudulent Accounts

  • File FTC Identity Theft Report
  • Submit police report if available
  • Block fraudulent accounts
  • Bureaus must block within 4 days

Best Practices

For Effective Disputes

  • Be specific about each error
  • Include supporting documents
  • Keep copies of everything
  • Send by certified mail
  • Track deadlines
  • Follow up if no response

Ongoing Monitoring

  • Check reports regularly
  • Use free credit monitoring
  • Watch for identity theft signs
  • Dispute new errors promptly

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