Federal Trade Commission Rules on Fixing Credit Report Errors

The Federal Trade Commission offers several do-it-yourself steps to fixing credit report errors. The Fair Credit Reporting Act gives you the right to order an investigation into any inaccuracy on your credit history at no charge. Both the credit bureau and the original information provider are legally responsible for correcting any legitimate inaccuracy once you dispute it in writing.

Negative Information

Your credit history is a written record of your ability to pay debts. Credit bureaus will report accurate negative information to your credit history, such as unpaid debt or civil judgments, for at least seven years; bankruptcies for 10 years. Criminal convictions, jobs paying more than $75,000 annually and attempts to secure more than $150,000 in credit or insurance can stay on your history indefinitely.

Error Investigations

A credit bureau you contact, in writing, about an inaccuracy must investigate that inaccuracy within 30 days as long as your request for an investigation isn't considered frivolous. The credit bureau must forward your dispute to the organization that originally provided the information in question. By law, the information provider must then investigate and report its findings to all three credit bureaus to resolve the dispute.

Credit Repair Help

According to the FTC, "Credit repair organizations must give you a copy of the 'Consumer Credit File Rights Under State and Federal Law' before you sign a contract." Credit repair companies are required to have you sign a contract specifying the total cost for services, payment terms and a detailed description of services promised, according to the Credit Repair Organizations Act. A credit repair company can only accept payment from you after it fulfills the services it promises to provide.

Credit Repair Warnings

The FTC suggests avoiding any credit repair organization that claims it can remove negative items from your credit history or help you create a new credit history altogether. You can get in trouble by using such services. Save your money. Maxine Sweet of Experian writes, "There is nothing any credit repair clinic can legally do for you --- including removing inaccurate credit information --- which you can't do for yourself for free."