The information contained in your credit report can determine whether you are approved for a credit card, mortgage loan, cell phone or any other type of credit. Many employers also run a credit check when hiring new employees. Erroneous or inaccurate information can cause your credit score to suffer, which can make it difficult to obtain new credit or favorable interest rates. Fortunately, federal law allows consumers the right to dispute credit reporting errors.
Fair Credit Reporting Act
The Fair Credit Reporting Act was established to preserve the accuracy, fairness and privacy of information contained in consumer credit reports. The FCRA requires the credit reporting bureau to investigate consumer disputes and take steps to remove or correct erroneous or inaccurate information. Credit reporting agencies also must forward any relevant data you provide regarding an inaccuracy to the organization that originally provided the information. By law, the credit reporting agency must resolve the dispute within 30 days and provide you with a free copy of your credit report if any changes are made. If a change is made, the FCRA allows you to request that corrected copies of your report be sent to anyone who requested it in the previous six months.
Fair and Accurate Credit Transactions Act
The Fair and Accurate Credit Transactions Act offers additional protections to consumers, specifically those who have been or may become targets of identity theft. If you believe your identity has been stolen, FACTA allows you to request that the credit reporting bureau place a flag or fraud alert on your account. You also may block negative items from appearing on your credit report if they occurred as a result of identity theft. Under FACTA, you also may contact a creditor directly to initiate a dispute regarding inaccurate information. The creditor must investigate and resolve the dispute within 30 days
Initiating a Dispute
To dispute information contained in your credit report, you must first notify the credit reporting agency or agencies in writing of the error. You must include your name, address and account information, along with a description of the error and why you feel the information should be removed or corrected. You may choose to enclose a copy of your credit report with the information highlighted for reference. Once you've initiated a dispute with the credit reporting agency, you may initiate a dispute with the creditor who provided the information. Be sure to contact the creditor in writing and include your complete contact information, account information and any details relevant to the dispute.
Violations
If you feel your rights under the FCRA or FACTA have been violated, you may sue the creditor or credit bureau for damages, court costs and attorneys' fees. For example, if you initiate a dispute and the credit bureau fails to resolve it within the 30-day period allowed, this is considered a violation of your rights. Similarly, your rights are also violated if the creditor or credit reporting bureau determines that information is inaccurate but fails to remove or correct it.
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