Credit Report Disputes
By
Jessica Malitoris on July 6, 2010
A dispute, in the context of credit reports, is essentially an attempt to correct credit report inaccuracies. Having an accurate credit report is important, because having poor credit—regardless of whether the information is correct or not—can negatively affect your ability to get a loan, get insurance buy a house, buy a car, or even get a job.
1 It is estimated that as many as 75% of credit reports contain some incorrect information.
2
Consequently, it is very important to keep consistent track of your credit report. The federal
Fair Credit Reporting Act (FCRA) allows you to request one free credit report every 12 months.
3 Under this law, any source of information provided to a credit reporting company must be correct and complete, and credit reporting companies must look into a dispute within 30 days.
4
As a consumer, it is your right to dispute incorrect or incomplete information on a credit report. The dispute itself is a list of the information on your credit report which you think is inaccurate. It usually takes the form of a letter, sent to the credit reporting company and/or the information provider, accompanied by copies (not originals) of documents which support your position—such as receipts.
5 In addition, then to checking your credit report regularly, it is very important to keep receipts connected to transactions which can affect your credit.
For more information on the Free Credit Reporting Act and your rights as a consumer to an accurate credit report, please see the Federal Trade Commission’s website on the
FCRA.
Source:
1 Federal Trade Commission.
How to Dispute Credit Report Errors. Washington, DC: Federal Trade Commission, Bureau of Consumer Protection, Division of Consumer and Business Education, 2008, 1.
2 United States. Congress. House. Committee on Financial Services.
Credit Reports: Consumers’ Ability to Dispute and Change Inaccurate Information: Hearing Before the Committee on Financial Services, U.S. House of Representatives, One Hundred Tenth Congress, First Session, June 19, 2007. Washington, DC: U.S. G.P.O., 2007, 4.
3 Federal Trade Commission.
How to Dispute Credit Report Errors, 1.
4 United States. Congress. House. Committee on Financial Services.
Credit Reports: Consumers’ Ability to Dispute and Change Inaccurate Information, 3.
5 Federal Trade Commission.
How to Dispute Credit Report Errors, 3.