The information in your credit reports is what’s used to create your credit scores, so you don’t want to let mistakes on your credit reports potentially throw your credit scores out of whack.
An FTC study released today shows that one in five consumers have errors on their credit reports and 5% of consumers have errors serious enough that they could result in less favorable loan terms.
“These are eye-opening numbers for American consumers,” said Howard Shelanski, Director of the FTC’s Bureau of Economics, in a statement. “The results of this first-of-its-kind study make it clear that consumers should check their credit reports regularly. If they don’t, they are potentially putting their pocketbooks at risk.”
Here’s how to dispute credit report mistakes, step-by-step:
Step One: Order current copies of your credit reports. Make sure you have fairly current copies (ideally, less than 60 days old) of your credit reports from all three major credit reporting agencies (CRAs), Equifax, Experian and TransUnion. Since these agencies don’t share information with one another, you can’t assume that the same mistakes — or lack of them — appear on all your reports.
Step Two: Dispute the mistake. Sounds straightforward, right? But you have a couple of choices to make here. The first is whether to dispute the item with the credit reporting agency (or agencies) whose report(s) shows the error, or with the company that is furnishing that information to the CRA (the “furnisher.”)
[Related Article: What's Really in Your Credit Report?]
Dispute the mistake with each of the credit reporting agencies that are reporting the inaccurate information if:
- It’s something not supplied by a furnisher that you can contact; for example, a wrong address, or incorrect public record information such as a judgment would require you to work with the CRA.
- The information reported doesn’t belong to you.
Dispute the mistake with the furnisher if:
- You have documentation that will show the furnisher that they are making a mistake in how they report the information to the credit reporting agencies; for example, copies of correspondence documenting a billing error.
- You’ve already disputed the item with the CRA and it has confirmed the information is “correct” and you want to go to the source.
Note, though, that you always must dispute the item with the credit reporting agencies that are reporting it before you can sue for credit damage. For that reason, some consumer law attorneys recommend sending a dispute to the CRAs and filing a copy of that dispute with the furnisher.
Your second choice is whether to dispute the item online or by mail. Filing online is fast and easy, and you don’t have to spring for a stamp, but you’ll want to make the extra effort to mail your complaint if:
- It doesn’t fall neatly into one of the CRA’s dispute categories. If you dispute it online, you’ll likely have to choose a reason for the dispute from a menu that gives you a few standard choices. If you need to provide a more detailed explanation, a letter may be your best bet.
- You’re giving up your rights online. Before you dispute a credit report mistake online, read the website terms and conditions to make sure you aren’t agreeing to mandatory binding arbitration, which means you forfeit your right to have your day in court if it is not resolved.
- You have proof of your side of the story. If you have documentation that the information is wrong, you’ll want to include it in your written dispute.
- This is your second attempt to get it right. If you received a response from the credit reporting agency that says the data is correct, but you know it’s not, you may want to follow up with a letter.
Always send written disputes by certified mail, return receipt requested, and keep a copy for your records. You may even want to get your letter notarized if you want the CRA’s attention.
Here are the addresses and links necessary to file a dispute with the major credit bureaus.
| Equifax P.O. Box 740256 Atlanta, GA 30374-0241 Dispute online |
Experian P.O. Box 9556 Allen, TX 75013 Dispute online |
TransUnion P.O. Box 2000 Chester, PA 19022 Dispute online |
[Credit Score Tool: Get your free credit score and report card from Credit.com]
Step Three: Wait for a response. The CRA or furnisher has 30 days to get back to you with a response. If the information is corrected or deleted, skip to step six. If not, go to the next step.
Step Four: Escalate your dispute. If you are told the information is correct, but you know it’s wrong, you’ll need to escalate your dispute. Send a letter to the CRA and/or furnisher stating why you believe the conclusion is wrong, and CC: the Better Business Bureau, your state attorney general and the Consumer Financial Protection Bureau. Send copies of your dispute to those agencies.
Step Five: Talk with a consumer law attorney. If your attempts to fix the problem don’t work, then you may want to talk with a consumer law attorney with experience in consumer credit disputes. The website of the National Association of Consumer Advocates is a good place to start.
Step Six: Keep records of your dispute. Put all your records of your dispute (copies if your credit reports, letters of correspondence, printed copies of emails or online responses, etc.) into a file and put it in a place where you can get to it if the same data appears on your file again.
Step Seven: Monitor your credit reports. At a minimum, order your credit reports from AnnualCreditReport.com, and use a credit monitoring tool (our Credit Report Card is free and is a good way to keep tabs on things). If you monitor your credit reports and scores closely, you’ll be alerted quickly to any problems. Credit reporting agencies are not supposed to reinsert items that were deleted as the result of a dispute without notifying you first, but it can happen.
[Free Resource: Check your credit score and report card for free with Credit.com]
For more Credit 101, check out these posts:
- What’s a Credit Score? Really.
- What’s Really in Your Credit Report?
- 8 Rules of an Effective Credit Report Dispute Letter
- How Much Will One Late Payment Hurt Your Credit Scores?
Image: eyeliam, via Flickr
Gerri Detweiler Gerri Detweiler is Credit.com's Director of Consumer Education. She focuses on helping people understand their credit and debt, and writes about those issues, as well as financial legislation, budgeting, debt recovery and savings strategies. She is also the co-author of Debt Collection Answers: How to Use Debt Collection Laws to Protect Your Rights, and Reduce Stress: Real-Life Solutions for Solving Your Credit Crisis as well as host of TalkCreditRadio.com.
{ 34 comments… add a comment }
What happened to step 8 ???
Did I mention eight steps? I’m confused…!?
#8 is always pay your bills on time!
True – except it won’t necessarily prevent mistakes!
I would like to know how to turn over any unclaimed debts back over to my ex-husband, who I was married to at the time and had to take care of the overall expenses and accumulated student loans to help me while trying to go to college & had to provide,support his children during that time? (Apologize for the the lengthy sentence structure, but it frustrating..) I discovered he falsified financial documents when the majistrate asked him at the time, as well,, he didnt inform his divorce attorney of any in the process financial gained amount, due to me not having the proof they granted him a divorce,leaving me the bills and ect. and Texas is a Community State and I believed, due to what I been through and him falling to maintain his support for his children and responsibilities for them needs until our Finalization and The Judge acknowledges all TRUTH …he needs to be sent back,due to falsiying any decree that should be Voided or he should be held liable including Contempt for falsifying financial gains at that time..Currently, he will be getting SSI & He is a Veteran as well, but they are always covering up for ex-soldiers like him( he a mishap of representation of the service, but they do have them affliated and protected as If failing to maintain any part of his responsiblities of taking care of his family,children,or needs for them can be ignored then and now he is in the Rears of 59k, the childsupport judge cut him half once before and he still didnt pay…between the military and some childsupport courts..hmm? This is how part of my credit became in shock or hindered, can You Plz
help this one …
You have my email, and I am blessed to say…I will be focus on assisting others who may or maynot have children that have concerns in which direction to take, but I believe I can not be any assistance to anyone, unless I am their TRUE testimonial example in “All things are Possible”, Due to a male was the 90.9% percental cause within the amount of years I was tied up to him within marriage and trying to take care of his children within the means that was limited and locked by limitations of him not being responsible or financially concerned in how it will affect his children financial growth. I really needs to move forward with more secured blessed advice that through monitoring and financial management within being financial aware with discipline and financial sense there is a TRUE way in being more secured and protected towards building a Established- Financial Portfolio for my life currently, while I am assiting others who may have fallen as well……..your welcome to email me directly as well…..I am no longer a Military Wife or apart of any Assistance for or with my children…I do know that I may not be the only one, but its many who have got lost and twisted into blindness that should know that their is Help and Assistance and Positive Possiblities that Proven that “All THINGS Are Possible”…Also, Is there a Such thing as Credit Monitoring or Lock with a Fee? I never asked anyone to Monitor My Credit or Have never seen such created agencies give people a hard time & charge other people for their own information that their compnay or agency have..In which, most of these same companies Sell, Trades, or Bargins “OUR” TRACKED Data…but yet many say for employed or verifiable reasons we need you to sign a consent form …..
Gerri-
I have a collection account on two of my reports that are not mine. I am going to send letters disputing this account all together. However, I have noticed that the same account has been reported on two of my credit reports, with two different account numbers. The account numbers are exact except there are two numbers within the account number that are transposed. Is this a “simpler” bases for or reason I can point out to the bureaus, that will remove this wrongful account from my credit report or do I still need to just go through disputing the entire account? Or is this something I should point out in the dispute letter as well?
Kyla – If the same account is showing up twice on the same credit report with just a number transposed, then you are likely correct that this is a clerical error. You can simply dispute the accounts as duplicates and see what happens, unless you have another reason for disputing them.
I have a hard inquiry from T-mobile that I believe should be a soft one, where it wouldn’t go against my credit as a soft one. I was accepted for employment, which normally is a soft inquiry. However they seemed to do a hard one, and it’s listed as “fuel and utlities”. I know I did not look into a cellphone with them, and this is really a disheartening fact on my credit report as I only worked there two days! Should I dispute this, and if so do I call T-mobile?
Lorena – a company that has permissible purpose to obtain credit reports for one reason but then obtains them for another reason may be breaking the law. They may also be in violation of their contractual agreement with the credit reporting agencies.
If it were me, I would dispute this inquiry, in writing, with the credit reporting agency (or agencies) that has it listed on the report. This is essential to protect your rights.
If you do dispute it, let us know what they say.
question..a bank sold my bad debt to a collection agency. The debt was written off in 2006 by the lender but has recently been sold to a ca. The ca is listing the date opened as 11/01/2012 (the date the ca purchased the debt) and showing the full amount as passed due. I have ask the cra to investigate and they say it is correct! Can they show the debt as past due when it has been written off? And is the “past due” lowering my credit score even more?I know l owe the debt and the wright off lowers my score, but does the “past due” lower it even more?
Thank you for any help you can give this poor retiree in texas
Monette – Lenders are often required under banking regulations to charge off (or “write off”) bad debts after a certain period of time. This helps ensure the lender is accurately represents its financial health. However, this doesn’t mean they can’t try to collect the debt or sell it to a collector who may try to collect it.
Collection accounts may be reported for 7 years and 180 days from the date you first fell behind with the original creditor. In practical terms, that means this collection account probably may no longer be reported 7 years from when it was charged off by the original lender. Based on what you are saying, that sounds like about a year from now. After that time it can’t be reported, even if it remains unpaid. The only instance where it may affect your credit longer than that is if they sue you and get a judgment, which would have its own reporting period.
I don’t know what you mean by this comment: “Can they show the debt as past due when it has been written off? And is the “past due” lowering my credit score even more?” If this is the collection agency you are talking about, then it’s negative no matter what. But collection accounts are usually reported as collection accounts so I am not sure where the past due remark is involved here.
Perhaps you can clarify. The more specific the better.
PS: My understanding is that the statute of limitations for most consumer debts in Texas is four years. So if you haven’t made any payments or payment agreements in that time, then there’s probably not a lot they can do to collect. That’s a separate issue and you should read our articles on debt collection to understand your rights when dealing with these debt collectors.
What I mean is the ca is listing under Status–Collection Account–$5100.00 past due as of 02-13-2013 (the date I filed a despute with the cra) so I guess my credit score reflects a collection and past due account, right? Looking at my Credit Card in credit.com I have a “F” under late payments….there are no late payments on my report except for the collection accounts that list the full amount owed as past due. I have disputed the Date Opened because it showes the date the CA bought the account, not the date of the original debt, the CRA wrights back and says “we contacted the CA and they said it was correct”….are you kidding me, what else would they say! I truly believe the CRA is a joke and they could care less what the truth is…their answer… “Post a dispute” and a lot of good that does….
It sounds like someone, somewhere keeps this account in collections even though it shouldn’t be. I’d suggest you go to the next step and talk with a consumer law attorney with experience in credit damage cases. (You can search for one at NACA.net.) Most of these attorneys will work with you on contingency or with no cost to you if you have a good case, as the other party will have to pay legal fees if they are breaking the law. Let us know what happens!
What a amazing post you have posted,really very impressive content.Thank you
I have a different dispute address for Experian. I sent my letter and documentation to PO Box 9701 Allen, TX 75013. Does this mean Experian won’t accept my dispute or it could take longer than 30 days? Thanks!
I wouldn’t worry about it – they have several different addresses.
I think I understand Monette’s inquiry as “Can credit reports double up on the SAME delinquent debt?
Based on the information, will her credit score reflect negatively from both places until the purge date?
Purge date = 7yrs+180days from the date first fell behind from original lender.
For illustration purposes, purge date is “July 16, 2014″ (1yr, 4months from now – a long time)
Original Lender: “debt written off” (lowering credit score)
AND
Collection Agency: “Past Due” (lowering credit score even further)
for the SAME debt UNTIL July 16, 2014??!!
That just seems crazy!
Also, what if the collection agency turns around and sells debt to another collection agency – would the debt be reported negatively through THREE companies for the same debt?
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Also, regarding “beginning date when first fell behind with original lender”; how does that work?
If I stopped paying for 6 months, then started paying again for 2 months and then stopped all together, what would be the beginning date (clock starts)?
The first month of the 6th month nonpayment
OR
The first month when I stopped paying all together?
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How many months of nonpayment = write off?
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I’ve also read/heard that if a collection agency contacts you about a debt they bought from your original lender and you acknowledge it then the clock starts again; is this true?
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If I am trying to clear up my credit and I have old unpaid balances – should I pay them off? Why? Why not?
Thank you so much for your help!
Yes, both the original debt and the collection account will have the same purge date. If the account is sold to another collector the same purge date will apply but she should be able to dispute the first collection account as a duplicate.
Regarding the original delinquency date it’s for the delinquency that led immediately up to the account being placed for collection or charged off. So in your example, it would be the first month the accountholder stopped paying all together.
Most creditors charge off (write off) accounts at 180 days of nonpayment due to banking regulations but it can vary from lender to lender.
It’s possible that acknowledging the debt could restart the statute of limitations but usually a payment is required for that to happen. And that affects how long they can successfully sue to collect the debt, but doesn’t change the reporting period.
As for your old debts, paying collection accounts won’t currently help your credit scores. You may want to pay them for other reasons (you owe the debt and want to make good on it, or you want to avoid being sued) but improving your credit is not one of those reasons.
I just descovered a collection aggency has listed a bad debt on my credit report. The same thing happened last year with a different CA, same debt. I called Direct Energy and faxed a copy of my check and they agreed with me, the account had been paid in full…the reporting agency removed it from my credit report and I though that was the end of it…Wrong…today I find a new CA has listed the same debt on my CR. Can they continue to place inacurate information on my CR and suffer no consequences. and how did this CA get this bogus debt unless it was sold to them by Direct Energy. Any advise is appreciated… : )
How long is a bankruptcy allowed to show on your credit report? I completed mine in New York FOURTEEN YEARS AGO & checked my Experian for the first time in years when denied a $300.00 store credit card (to receive a 10% discount on my order!) – otherwise, I never would’ve known. I rec’d the proper letter in the mail explaining why I wasn’t getting the card, then checked my report – yup, there it was! When I filed, my attorney asked everyone in the (necessary “pre-court” class) if they were SURE this was the only option as this would stay with you for XX # of years. I THOUGHT it was seven, I KNOW it’s not FOURTEEN! Could you post the answer so that everyone/anyone considering this difficult option understands the YEARS of bad ramifications. I had to do it for medical expenses:
$177,000.00 in medical debt – $22k/yr income, 29 yrs old/single/disabled – yup, only option!
Thank you Miss Gerri, I look forward to your response.
ps – things are ok now financially – totally disabled/living w Mom/but scraping by!
A bankruptcy can only be reported ten years from the date you filed. I see no reason why it should be on your reports 14 years later. What does it list for the date of filing??
I HAD A DEBT WITH BANK AMERICA. AND THIS ACCOUNT WAS COMBINED WITH COM I THINK WORLD POINT BANK WAS COMBINED WITH BANK AMERICA TOOK OVER.WAS WAS WITH BANK AMERICA CREDIT ACCOUNT. .I NEVER SIGNED UP FOR ON LINE BILLING AS I ALMOST BLIND IN ONE EYE AND HAVE ONLY ONE EYE IS STILL GOOD BUT SOON I WILL BE COMPLETELY BLIND. THERE IS NO CURE. I ONLY MENTIONED THIS AS I WANT TO EXPLAIN THAT I DO NOT HAVE BILLING ON LINE. MY HUSBAND ONLY SPEAKS SPANISH. THE BILL WAS PUT ON THE WRONG INTERNET ACCOUNT, I NEVER HAD THIS ACCOUNT NAME. THEY DO NOT HAVE MY CORRECT MAIL ACCOUNT. THEY TURNED ME INTO THE CREDIT BUREAU. I PAYED THE BILL WITHIN THREE MONTHS BUT IT IS TILL ON MY CREDIT FOR SEVEN. ALSO THIS WAS NOT A LARGR MOUNT OF MONEY THAT WE ARE TALKING ABOUT WHICH IS ABOUT $2,000. HOW CAN I GET THIS REMOVED. I WROTE BANK OF AMERICA AND ALSO THE FED GOV CREDIT BUREAU BUT TO NO AVAIL. WHAT CAN I DO TO GET THIS BILL OFF. ONE PERSON SAID THAT I SHOULD MAKE THE BANK OF AMERICA WRIT A LETTER TO THE CREDIT BUREAU STAYING THAT FIRST I NEVER SIGNED FOR ON LINE BILLING. I WAS NEVER SHOW WHERE BY BANK OF AMERICA,WHERE I SIGNED, I GAVE THEM A CORRECT EMAIL. WHY DIDN’T THEY JUST SEND IT TO MY HOME ADDRESS WHICH I WOULD HAVE PAID IMMEDIATELY. I AM VERY INTEREST IN HOW TO GET THIS SEVEN YEAR BILL REMOVED.
Last year my ex and I went back to court over our normal 3 year review for child support, I knew my child support would go up as I am making more money now than I was three years ago, after the precedings my child support went up as expected , I wasn’t worried at all about it because the child support always comes directly out of my paycheck each week, ( been employeed at the same job for years). This year i went to the bank to get a loan and they said my credit wasn’t good enough , shockingly I asked what was on it, they said late child support payments dropped my score over 100 points, I think that this is crazy because the attorney general tells my employer how much to take out each week. Even though money had still been coming out each week ,the attorney general failed to tell my employer the new, correct amount for 3 months after the procedings, so they reported it to the credit bureu as deliquent payments . Can I dispute this as wrong, because I paid each week and have never been behind on my child support. Any and all info is greatly needed and appreciated. Thanks a concerned dad
I would like to know how to get Credit.com to fix inaccuracies with the information they are reporting for me. They are reporting more loans and higher amounts then I actually have. I have already viewed my reports and the multiple accounts are not on there, so I don’t see how Credit.com can come up with the information they are reporting.
I live in Texas, and all my debt is in Texas. I have found that our statute of limitations is four years. Many Items on my credit report are from 2009 and 2010. So we are coming close to the four year mark. My question, Is it possible for me to dispute these items after they roll over the limit, and they will fall off? I am wanting to start cleaning up my score. It has slowly risen, I have noticed over the years, but I am nowhere near buying a house or anything. Is my idea possible, od how would I go about getting these things off of my report so I can start to build my score back up. Thanks for your response.
Jack – The statute of limitations only addresses how long the creditor has to sue you successfully for the debt. It does not affect how long information remains on your credit reports. That’s covered by the Fair Credit Reporting Act. We spell those time limits out here: How Long Does Negative Info Stay on My Credit Report?
What can be done for victims of natural disasters? I was living in southern Louisiana in 2008 and had to evacuate for Hurricanes Gustav and Ike, which both occured back to back. During that time I had a bill from Progressive Insurance that I either never got or was lost in the chaos and it went to collections (NCO Financial). I noticed this on my credit report in 2010 (I was deployed to Iraq throughout 2009) and paid the bill immediately. Is there anything that I can do to try to get this off of my report now? I tried to contact NCO about the issue and they are very rude and offer no assistance.
Because the incident occurred more than two years ago, the likelihood of the creditor working with you to change the late payment is next to nil. The key is to act quickly as this article explains:
For more help with natural disaster preparedness and credit related issues, these resources may help:
A Credit Card Checklist for Natural Disasters
I have two items on my credit report that say “no status”. It is the Experian Report. I have constantly disputed the item. I called the two places and they claimed the bills are not supposed to be listed as such. They said they would have Experian change it. I also contacted Experian and proved the last time I paid on the items. This has been ongoing the past three years. By now at least one of the bills should be off my report but the “no status” is preventing it. Somehow it is being investigated under the fair billing act and I’ve never had a bill being investigated that long. I did not even put it up for investigation. So what do I need to do?
Hello,
I need a copy of sample 2nd Dispute letter with a one, two punch showing me what information I need to include, regarding a denial from Experian. (They stated that the information was verified, but did not send me proof or how they even came up with their facts). Your assistance would be greatly appreciated.
Thanks,
Deon
Hi Deon – To explain the process, when you file a dispute with a credit bureau they have 30 days to investigate and resolve your dispute. When they open an investigation their first step is to contact the data furnisher responsible for reporting the information that you’re disputing. This could be a lender, creditor, collector, or any entity that is able to report credit data to the bureaus. If the data furnisher confirms that the information being reported is accurate the bureau will mark the dispute as verified and close the investigation—–and the information will remain and continue to be reported. The bureaus are not required to provide any documentation or explanation of how they came up with their facts. This is because their facts are based on what the lender reporting the information tells them. If it’s your word over a lender’s, the credit reporting agency is going to go with the lender unless you have proof to back up your dispute.
Can you provide a little more detail about what you’re disputing?
When filing a dispute it’s always a good idea to provide any proof or documentation that would help the bureau with the investigation. If the information is inaccurate and the data furnisher refuses to correct it, they’re breaking the law under the Fair Credit Reporting Act. If you have proof that the information is inaccurate and the creditor/data furnisher refuses to correct the error, your next line of defense would be to speak to a consumer law attorney that’s familiar with handling FCRA lawsuits – http://www.naca.net is a good place to start.
I know that the negative item will stay on a credit report for 7 years.
Here is my question.
If a payment was 90 days late how much will it hurt my credit score?
If it was two years old how much will it hurt my credit score?
If it was four years old how much will it hurt my credit score?
the reason for this question is because of the dates that are almost always wrong in a credit report,
thanks
tim
I wanted to get an opinion on what to do about an issue I just was made aware of. I received a phone call this morning from a collections agency about my Chase credit card balance. I was unaware of any due balance since I rarely use this credit card and used it only for establishing credit when I was in college. I have a credit score of 796 with only my student loans and car as my debt. The billing statements were being sent to an old address according to both Chase and the collections agency. The collections agency connected me with a Chase manager to figure out what the charges were and on what date. Apparently, I had a $101.92 balance on a card from a Sept. 7, 2012 rental car charge that had gone to collections as of April 30,2013 at $310.40 due to late fees and interest. Having never made a late payment, minimum payment, or anything of the sort I was completely shocked that this had occurred. If I was aware of ANY charges they would have been paid in full at or before the due date as I ALWAYS DO. Well, the Chase manager was kind enough to take off the interest and late fees making my balance due $101.92 which I paid today. I then called the collections representative I had been dealing with to let him know that he should be seeing the letter from Chase regarding my account within a few days. I don’t want any blip on my credit report. How can I go about correcting this issue besides paying my balance due? The woman at Chase said that it’s out of her hands once it goes to collections. Is there anything I can do like write a letter to Experian, Transunion, and Equifax asking to delete the charged off credit card? I realize that this isn’t a large charge amount, but I’m very concerned about my credit being negatively affected. Any suggestions would be great!
Thank you for your time.