A Consumer Guide to Fixing Your Credit
Fixing a credit report can be
a difficult and painful process, but it doesn't have to be.
An entire fee-based industry has been developed to help consumers
repair their credit reports. In truth, if information can be
corrected, then a consumer has a right to get it corrected on
their own--without paying anyone for the privilege. Our firm does
not offer any credit repair services, but we do want to help
educate consumers about how they can take control of their credit,
correct mistakes within their credit reports, and enforce their
federal rights when appropriate corrections have not been made.
Fixing a mistake on one
credit report does not means the mistake is gone forever. It
may later reappear on a credit report or get reported to another
credit bureau. In truth, all of the credit reporting agencies (TransUnion,
Experian,
CSC, and
Equifax) genuinely want to ensure the maximum
possible accuracy of your credit report because they are required
by law to do so. If they do not, you have a right to sue them
under the Fair Credit Reporting Act ("FCRA").
Many of these
credit reporting agencies' websites offer useful advice, tips,
guidance and services for helping you get your credit reports
right. But they also offer lots of expensive monthly services
to make it easy for them to do what they are required by law
already to do: namely, ensure the maximum possible accuracy of
your personal credit information. Skip the
expensive add-on services and stick with the basics outlined
below.
The First Rule of Credit Repair: Put
Everything in Writing! The power of the pen is
mighty and what follows is our firm's best advice for getting to
the root of any credit report error and getting it fixed, once and
for all. At the end of this process, you'll be a better informed
consumer and your credit report will hopefully fixed to your
satisfaction. If on the other hand your credit reports are still
showing errors after you have followed these steps, or an
unauthorized person has accessed one of your credit reports, then
you will want to
contact our law firm
to find out what your rights are.
The Second Rule of Credit Repair: You Can't
Change Or Remove Accurate Information--Even IF You Wish You Could!
Like it or not, creditors have a right to tell the truth about you
and your payment habits. Potential credit grantors have a right
to expect that the information they get off of a credit report is
accurate, too. Consumers have the right to expect that the
information on their reports is accurate--even if it's negative.
Answers to Some Common Questions About Your Credit Report
Was I denied credit because of a "bad credit
report"?
If you applied for and were
denied credit, the Equal Credit Opportunity Act requires the
creditor who denied you credit to tell you the specific reasons
for your denial. For example, the creditor must tell you whether
the denial was because you have "no credit file" with a Consumer
Reporting Agency or because the Consumer Reporting Agency says you
have "delinquent obligations." This law also requires that
creditors consider, upon your request, additional information you
might supply about your credit history.
How do I locate the Consumer Reporting Agency
that has my file?
If your application was denied
because of information supplied by a Consumer Reporting Agency,
the company that denied your application must provide you with the
name, address and telephone numbers of the Consumer Reporting
Agency. Otherwise, you can find the Consumer Reporting Agency that
has your file by calling those listed in the Yellow Pages under
"credit" or "credit rating and reporting." Since more than one
Consumer Reporting Agency may have a file about you, call each one
listed until you locate all agencies maintaining your file.
Do I have the right to know what the report
says?
Yes, if you request it. The
Consumer Reporting Agency is required to give you all the
information in your report and, in most cases, the sources of that
information. However, the Consumer Reporting Agency is not
required to reveal any credit rating or risk evaluation. You also
have the right to be told upon request the name of anyone who
received a report on you in the past 12 months, and you may also
request the address and phone number of each such person. (If your
inquiry concerns a job application, you can get the names of those
who received a report during the past two years.) The Consumer
Reporting Agency will also provide you with a written summary of
your rights under the Fair Credit Reporting Act.
Is this information free?
Yes, in certain circumstances.
If your application was denied because of information furnished by
the Consumer Reporting Agency, and if you request a copy of your
report within 60 days of receiving the denial notice you are
entitled to the information without charge. You are also entitled
to one free report once in any 12 month period, if you certify in
writing that you:
- Are
unemployed and intend to apply for a job in the next 60 days;
- Are
receiving public welfare assistance; or
- Believe that
your report is wrong due to fraud.
If you don't meet one of these requirements, the
Consumer Reporting Agency may charge a reasonable fee.
What can I do if the information is
inaccurate or incomplete?
Notify the Consumer Reporting
Agency. The agency probably has a toll-free telephone number. Be
as specific as possible. The agency is required to delete or
reinvestigate the items in question. If the new investigation
reveals an error, a corrected consumer report will be sent to you,
and upon your request, to anyone who received your report in the
past six months (Job applicants can have corrected reports sent to
anyone who received a copy during the past two years.). If you
dispute the accuracy of the information in your file and the
Consumer Reporting Agency deletes it, the agency can not put the
disputed information back into your file without notifying you in
writing.
If you contact a consumer
reporting agency to dispute the accuracy or completeness of
information in your file, the reporting agency may forward your
dispute to the creditor or other person who furnished the
information to the agency. But you also should still contact that
source of information directly. Many creditors have a special
address for this purpose, and have a duty to avoid reporting
inaccurate information. Also, if you tell anyone that you dispute
the accuracy of information, then that person must note that the
information is disputed whenever it is provided to a consumer
reporting agency.
What can I do if the Consumer Reporting
Agency won't modify the report?
The new investigation may not
resolve your dispute with the Consumer Reporting Agency. If this
happens, have the Consumer Reporting Agency include your version
of the disputed information in your file and in future reports.
You may submit a written statement of any length to be included in
your file, although if the Consumer Reporting Agency helps
consumers write a clear summary of the dispute, the statement may
be limited to 100 words. At your request, the Consumer Reporting
Agency will also show your version or a summary of your version to
anyone who recently received a copy of the old report. There is no
charge for this service if it's requested within 30 days after you
receive notice of your application denial. After that, there may
be a reasonable charge.
Do I have to go in person to get the
information?
No, you may also request
information over the phone. But before the Consumer Reporting
Agency will provide any information, you may have to establish
your identity by completing forms they will send you. If you do
wish to visit in person, you'll need to make an appointment.
Are reports prepared on insurance and job
applicants different?
If a report is prepared on you
in response to an insurance or job application, it may be an
Investigative Consumer Report. These are much more detailed than
regular consumer reports. They often involve interviews with
acquaintances about your lifestyle, character, and reputation.
Unlike regular consumer reports, you'll be notified in writing
when a company orders an investigative report about you. This
notice will also explain your right to ask for additional
information about the report from the company you applied to, or
you may prefer to obtain a complete disclosure by contacting the
Consumer Reporting Agency. Note that the Consumer Reporting Agency
does not have to reveal the sources of the investigative
information.
If an employer intends to take
any adverse action against you based on a consumer report, whether
or not it is an investigative consumer report, the employer must
first give you a copy of your report and a summary of your rights
under the Federal Fair Credit Reporting Act.
How long can Consumer Reporting Agencies
report unfavorable information?
Generally seven years. Adverse information can't
be reported after that, with certain exceptions:
- Bankruptcy
information can be reported for 10 years;
- Information
reported because of an application for a job with a salary of
more than $75,000 has no time limitations;
- Information
reported because of an application for more than $150,000 worth
of credit or life insurance has no time limitation;
- Information
concerning a lawsuit or judgment against you can be reported for
seven years or until the statute of limitations runs out,
whichever is longer.
Can anyone get a copy of the report?
No, it’s given only to those
with certain specified permissible purposes. If someone has
obtained your credit report without your permission or knowledge,
contact our office immediately.
Do I have to be told before someone sees my
credit report?
No, a person may request a
consumer report without telling you so long as it is for a
permissible purpose like financing a car or buying a house.
However, a Consumer Reporting Agency may not provide a consumer
report to an employer unless the employer has your written
permission. Also, your written permission is needed before medical
information may be reported by a Consumer Reporting Agency for
credit, insurance, or employment purposes.
What if I think a Credit Bureau has violated
my rights under the law?
A Consumer Reporting Agency or
other person who has been found to have violated the Fair Credit
Reporting Act must pay your actual damages, statutory damages and
your attorney's fee.
Click here first
or Self Help Tips on Correcting Your Credit Reports. If the
problems persist you may want to
contact our office.
* Acknowledgment: This
consumer guide was developed based in part upon information
provided by the
Federal Trade Commission web site,
an excellent source for accurate and up-to-date consumer
information.
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