 Your
credit report is a record of your credit activities. It lists
all of your credit card accounts and loans, the balances as
well as your payment history. It also shows if any action
has been taken against you because of unpaid bills such as
a lawsuit or bankruptcy filing. Because businesses use this
information to evaluate your applications for credit, insurance
and employment, it’s important that the information
in your report is complete and accurate, especially if you
plan to make a big purchase like a home.
The Fair Credit Reporting Act (FCRA), enforced by the Federal
Trade Commission (FTC), is designed to promote accuracy and
ensure the privacy of the information used in consumer reports.
Under the FCRA, both the credit reporting agency (CRA) and
the organization that provided the information to the CRA
(usually the credit card company) must correct any errors
or incomplete information in your report.
If you do encounter a mistake on your credit report, several
steps need to be taken to correct the matter:
1. The first thing to do is get a copy of your credit report
from each of the three major CRAs: Equifax, http://www.equifax.com;
Experian, http://www.experian.com;
and TransUnion, http://www.tuc.com.
2 In a written letter, tell the CRA what information you
believe to be inaccurate. Include copies (not originals) of
documents that support your position. Provide your complete
name and address, identify each item in your report you dispute,
and request deletion or correction. Be sure to make copies
of your dispute letter and enclosures.
3. Send your letter by certified mail, return receipt requested,
so you can document what the CRA received.
4. The FCRA mandates that all CRAs reinvestigate the items
in question — usually within 30 days — unless
they consider your dispute frivolous. They also must forward
all relevant data you provide about the dispute to the credit
card company. After the credit card company receives notice
of a dispute from the CRA, it must investigate, review all
relevant information and report the results to the CRA.
5. If the disputed information is found to be inaccurate,
the credit card company must notify all nationwide CRAs so
they can correct this information in your file. Disputed information
that cannot be verified must be deleted from your file.
6. When the reinvestigation is complete, the CRA must give
you the written results and a free copy of your report if
the dispute results in a change. If an item is changed or
removed, the CRA cannot put the disputed information back
in your file unless the credit card company verifies its accuracy
and completeness, and the CRA gives you a written notice that
includes the name, address, and phone number of the credit
card company.
7. In addition to the CRA, you should also write to the credit
card company about the error. Again, include copies of documents
that support your dispute. If you are correct — meaning
the information you disputed is found inaccurate — the
credit card company cannot use it again. Further, at your
request, the CRA must send notices of corrections to anyone
who received your report in the past six months.
F.A.Q
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financing, and property management. Call us today for a free
consultation @ 916-482-6899 or email us at fay@amerpropmgmt.com.
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