A credit report error can become more than a paperwork problem. It may affect a credit application, an apartment application, or another important decision. If the information is wrong, you have a way to challenge it.
The Fair Credit Reporting Act, usually called the FCRA, gives consumers important protections involving consumer reports. It requires reasonable procedures for accuracy and establishes duties for investigating disputes. Understanding the process can help you protect both your finances and your records if the problem continues.
What does a credit report error look like?
Start with the actual report, not just a credit score. A score can change for legitimate reasons. A report shows the account details that may explain what happened.
Examples of possible errors include:
- An account that belongs to someone else or was opened through identity theft.
- A payment marked late even though your records show it was timely.
- A balance or account status that does not match the records.
- The same debt listed in a misleading or duplicative way.
- Information that should no longer be reported under applicable reporting rules.
- Bankruptcy-related information that inaccurately describes an account’s status.
Not every unfamiliar name means fraud. A creditor may use a different business name, and a debt may have been transferred. Compare the entry with your statements before deciding what to dispute. If it is not yours, say that clearly rather than guessing at an explanation.
How to dispute inaccurate information
Gather reports and supporting documents
Review your reports from Equifax, Experian, and TransUnion, because an error may appear on some reports but not others. Use the official report-request resource identified by the Consumer Financial Protection Bureau, rather than an unfamiliar advertisement offering credit repair.
Save dated copies of the reports. Gather payment confirmations, account statements, letters, and any other records showing why the entry is wrong. If a lender or landlord denied an application based on a report, keep that notice too.
Send a specific dispute to the credit bureau
Dispute the entry with every credit reporting company showing the error. Identify the account, explain the problem in plain language, and state what correction you want. Include copies of relevant evidence, not your only originals.
For example, instead of saying, “My report is wrong,” explain that an account shows a late payment and attach the statement and payment confirmation supporting your position. If you use an online portal, save the submission, attachments, and confirmation. If you mail a dispute, keep a copy and proof of delivery.
Contact the company that supplied the information
The business supplying account information is often called the furnisher. It may be a bank, lender, or collection company. The CFPB recommends disputing errors with both the credit reporting company and the furnisher. Use the designated dispute address or process.
A direct complaint to a creditor is not always a substitute for a credit bureau dispute. For certain FCRA claims against a furnisher, the bureau’s notice of your dispute is an important legal step. A lawyer can explain which duties apply.
Review the investigation results
Credit reporting companies generally must investigate qualifying disputes and provide results. Information found to be inaccurate, incomplete, or unverifiable must be addressed as required by law. An unsupported or unclear dispute may be treated differently, which is another reason to provide specific facts.
Read the response and check the updated report. Save both even if the company says the information was verified. If the error remains, compare the explanation against your documents and record what is still wrong.
What can consumers recover under the FCRA?
Available remedies depend on the violation and whether the conduct was negligent or willful. A successful claim may allow recovery for actual harm. Depending on the facts and proof, that can include financial losses and emotional distress.
Willful violations may support statutory damages or actual damages, and potentially punitive damages. Attorney’s fees and litigation costs may also be available when the legal requirements are met. These are possible legal remedies, not promises about any particular claim.
An error by itself does not automatically entitle someone to compensation. The responsible party’s legal duties, the dispute history, the evidence of harm, and the court’s requirements all matter. Accurate negative information generally cannot be removed simply because it hurts your score.
When should you call a lawyer?
Consider legal help if an error remains after a documented dispute, false information returns, or your file appears mixed with someone else’s. Also seek advice if identity theft keeps affecting your reports or inaccurate information has affected a housing or credit decision.
Bring the reports, disputes, delivery confirmations, investigation results, and records of any resulting harm. You do not need to know which company violated the law before asking for a review. Avoid waiting indefinitely through repeated identical disputes; legal deadlines may apply.
Get help with a credit reporting problem
Chhabra Gibbs & Herrington PLLC evaluates credit reporting claims through its FCRA litigation practice. Based in Jackson, Mississippi, the firm handles national consumer class action and mass tort matters. Call 601-326-0874 or contact the firm for a free case evaluation.
This post is for general information and is not legal advice. Attorney advertising.