The FCRA is the set of laws that regulates how consumer information is collected and stored. It also controls how consumers credit information is released to companies.
What is a Credit Reporting Agency?
Credit Reporting agencies also know as CRAs are the agencies that collect consumer information including account and them CRAs make this data accessible into a credit report.
While there are many CRAs, the most well know are Experian, Equifax, and TransUnion.
When a company conducts a credit check, they are contacting CRAs for this information. A credit check can be used for many different reasons such as; employment, loans, credit card approval, and rental applications.
You have a right to dispute incorrect credit information and have these errors corrected.
The FCRA Protects You From Credit Report Errors
• Disputing errors is a consumer right – The FCRA gives consumers the right to report any errors on your Credit report. To do this, the consumer must report inaccurate information to the company that supplied the report. The CRA is then required by law to investigate that
• Any errors must be removed- If the error you have reported is indeed found to be an error or the CRA cannot verify the information they have is correct then the CRA must remove the mistake from credit report within 30 days of the complaint.
• Outdated information can’t be used. If a person has had credit issues in the past, but these issues are resolved, it can only show on your credit report for seven years. The only exception to this rule is bankruptcy, and it is removed from reports in 10 years.
• Know your rights – Under the FCRA, consumers have the right to sue CRAs for damages when the laws are broken. In some circumstances, the consumer may also be able to sue the company/agency that used incorrect credit information against you.
• For more, view our Summary of Your Rights Under The Fair Credit Reporting Act (FCRA)
Please see “Summary of Your Rights Under The Fair Credit Reporting Act (FCRA) for more information about your rights as a consumer.
Disputing Errors On Your Credit Report
When reviewing your credit reports, you must notify the credit bureau via mail or an online form. We have many tools to help you inform the CRAs of the errors quickly.
• Online Dispute Form. This form is excellent for creating the letter of errors on your report. It’s easy to fill out the information and then print a copy for your records and one to send to the credit agency.
• Sample Dispute Letter – A form should always be sent with your credit report. Sometimes that form isn’t included. We’ve made a sample letter for consumers to use when disputing errors. Remember always to keep a copy for your records.
TIP: In the event that you feel that your identity is compromised, you can put a freeze on your credit report for a period of 90 days so no one can access it.
Tip: If you think that your identity has been stolen or compromised, you can have the credit reports frozen for 90 days. During this time, no one will be able to pull your credit report.
When a Credit Report Agency receives your dispute, they then send the form to furnisher (the company that added the account ). They perform an investigation and then send the revised or corrected information back to the CRA.
The CRA and the furnisher should complete separate investigations into the dispute.
Sadly, many times, CRAs don’t investigate thoroughly, and this leads to errors not being resolved. Sometimes it may take many attempts to resolve the credit report error, but there are no guarantees the dispute will ever be resolved.
Don’t Fight Credit Report Errors Alone
Do you feel like you haven’t been successful in dealing with the CRAs? Are there errors on your report they will not remove? Let our office help you, don’t fight with mega agencies alone. Joseph K Githuku and team of experienced lawyers can help to get those errors resolved and help to make sure that you receive compensation.
Call us now at 1-000-000-9999 to get the help you need! Don’t let errors continue to wreck your credit score; call us today for a free consultation.
Common Credit Report Errors
Did you know that 1 in 5 Americans have errors on their credit report? Credit report errors are widespread and can be extremely damaging to a consumers reputation. Credit Report Errors can also make the consumers’ life very difficult.
These report errors can keep you from renting an apartment, buying a car, or applying for lines of credit. These errors can even keep you from getting a job!
5 Common Credit Report Errors
Outdated information- Credit Reporting Agencies use different databases to pull your financial information. Experian, TransUnion, and Equifax use their databases, and they update this information at their discretion.
Clerical Errors – These are common errors, and they can impact your credit score. Check to make sure the details of the accounts listed are accurate. Make sure credit types are labeled correctly (auto loan, credit card, student loans, etc.)
Mistaken or merged accounts – sometimes your account information and other persons account information become mixed up. This can occur in many ways as people have the same names, birthday, or similar addressed. Always make sure that every account on your report is an account that belongs to you.
9. Identity Theft – People who have had their identity stolen will find out they have accounts they have never opened in their name. You may never have seen an account or been in a particular location to have ever opened the account. That is one reason why it is crucial to make sure that only accounts that are yours are on your credit report.
10. Background Check Errors and Employment Report Errors –These types of issues are generally due to a mix up of information, clerical errors, or outdated information. When these errors result in a job loss, you could lose wages. This can be damaging in both your professional and personal life.
Disputing Credit Report Errors
When you find errors on your credit report, it’s crucial to have corrected quickly. Your first step in disputing a credit report is to contact the company that issued that report. To do this correctly, you need to write a credit report dispute letter to that company. Typically you will hear from the credit report agency within 30 days. If after 30 days your dispute was confirmed as an error, then your credit report must be updated.
During this process, it is vital to keep well-documented records of any communication between yourself and the credit report company. This includes any letters you have sent to the company.
If you have disputed errors on your credit report and the CRA is not making any changes contact us. You may be entitled to compensation along with restoring your credit.
Hire Joseph K. Githuku to Dispute Credit Report Errors
It can be difficult to get credit reports errors fixed without help. The Joseph K. Githuku law firm is experienced in consumer laws and will help you fight to get your credit information in order. You may be entitled to damages along with having your credit report updated. Fill out our quick form or call us at 410-849-9529 for a free review of your case.
The Cost of a Credit Report Error
Small credit errors add up! We know that credit errors are common, and you may be tempted not to report minor mistakes or you may not know the process to dispute the credit information. It’s important that you understand that even one small error can affect your financial future negatively.
Importance of Your Credit Score
Do you know how your credit score is created? A credit score is a number generated by the information found in your credit report. This score will vary between the various Credit Reporting Agencies.
FICO score is the most commonly used credit score. Lenders, banks, mortgage brokers all look at this credit score when determining lines of credit. This score helps lenders decide whether you are a risk or whether you repay debts. FICO credit score range is 300 to 850. The higher the score, the better because it shows you have a history of paying your bills on time.
Errors on Your Credit Report Can Cost You Thousands
It may just look like numbers on a page, but errors on your credit report can lower your score and create serious financial issues both now and in the future including:
Higher interest rates on credit cards
Higher insurance premiums both home and auto
Higher home mortgage interest rates
United States Government Clearance
High-interest rates on private student loans
Denial of lines of credit including loans and credit cards
Just one increased interest rate can cost you thousands of dollars, plus if you are not hired for a job because of errors on your credit report it could cost you tens of thousands a year! Under the FCRA you are entitled to a free credit report from all three major bureaus every 12 months. Make sure to request your copies, looking carefully for errors in the reports.
Keep in mind that the three major CRA’s keep there own databases so the information may vary from one report to the next, that’s why it’s best to request a copy of your report from TransUnion Experian, and Equifax.
How Your FICO Score Is Calculated
Your FICO score is based upon your financial history. The good news is that they only look at what shows up on your credit report to determine this score. They use a combination of both negative and positive information to come up with the score. The FCRA limits the length of time negative information can show up on your account to seven years. Bankruptcy is the only exception to the seven-year rule. It stays on your credit report for ten years.
So how do they come up with your score? There are five categories, and the percentage of the category helps to understand the importance of that information. Let’s look at these five categories:
• 35% – Payment History – This is the most important factor in your score. It’s important because lenders need to know if you have paid your past credit accounts.
• 30% – Amounts Owed – This score looks at how much a consumer already owes on their current accounts. Having many open accounts isn’t a bad thing, but it can signal to the lender that a consumer may be overextended and have problems making future payment.
• 15% – Length of Credit History – Having open accounts for a long period of time increases your credit score.
• 10% – Credit Mix In Use –credit mix is the different type of credit you have in use. (auto, school loans, credit cards, etc.)
• 10% – New Credit – Opening or applying for several credit accounts in a short period of time, alerts potential lenders that the person may be a lending risk.
As a consumer knowing that your credit score is used by lenders, banks, future employers, and even rental companies, it is crucial that you obtain your credit reports and check them at least annually for errors.
Hire Joseph K. Githuku to Dispute Credit Report Errors
If you have errors in your credit report that are damaging your FICO score and have not been able to have them fixed, it’s time to contact a consumer law firm, the firm of Joseph K Gitukucan help you resolve these issues. Simply fill out our online form or call us at 410-849-9529 for a free case review.
Dispute Credit Report Errors
It is important to dispute any errors you find on your credit report right away. These errors can cost you thousands of dollars in interest rates, premiums, and may even result in loss of a job. The Fair Credit Reporting Act says that Credit Reporting Agencies (CRAs) must make sure that all financial information they report is accurate. Sadly, up to 20% of consumers have experienced errors on their credit report.
It is your right as a consumer to dispute any credit report errors and sue CRAs for any damages.
Most CRA’s have an area to file a dispute on their website, or they will send you a dispute form with your copy of your credit report. If you cannot find the correct form on their website or didn’t have a dispute mailed to you; you can still dispute the errors in writing. We’ve made it easier for you to write dispute letters with the following tools:
Online Dispute Form
Letter Templates – Use the letter below as a template; from there, you can handwrite or type your letter.
Call our office at 410-849-9529 and talk to an experienced consumer protection attorney. Our office will gladly review your case free of charge.
It is important to keep a copy of each form or letter that you send regarding errors. The Fair Credit Reporting Act says that CRAs have no more than 30 days, they must also show which accounts have been disputed on your credit report or is under investigation.
Hire Joseph K. Githuku
If you have been ignored by the Credit Reporting Companies, then it’s time to talk to an attorney. Fill out our online form today or give us a call at 410-849-9529.
How do I Order My Free Credit Reports?
Under the Fair Credit Reporting Act, the major national credit reporting agencies are required to provide you with a free credit report every 12 months. You must request these reports. The nationwide credit bureaus are Equifax, Experian, and TransUnion. These are the agencies that sell your information to lenders, employers, landlords, or anyone else in a business that evaluates credit.
There is one central website for all the agencies for the annual credit report. Remember you must request these reports every year to receive them.
This truly free website from the credit bureaus is annualcreditreport.com
You may also order your reports in writing by filling out their pdf form and mailing it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281
When ordering by mail, it may take around 15 business days to obtain your report.
You can order your credit reports from all three agencies at the same time, or you can choose to order your reports at different times throughout the year. It’s important to remember each CRA manages its database for your information may vary from one report to another.
Importance of Your Annual Credit Report
Did you know that your credit report may be requested by different companies several times a year? It can be any company you are dealing with financially, whether it’s applying for a credit line, insurance companies, or even by your potential employer. This is why it is so important that your credit report is free from errors. It is the duty of Credit Reporting Agencies to make sure credit reports are error-free, but mistakes do happen. A single mistake in your credit report could cost you thousands in a year.
Checking your credit reports every year can help you find and resolve these costly errors and can also help you protect yourself from identity theft.
Other Free Credit Reports
If you are denied credit from a company you are entitled to a free credit report, you must request the report within 60 days of when you received the notice. The notice will give you the contact information of the credit reporting agency and how to obtain your free report.
You can also receive a free credit report if you are unemployed and intend to look for a job within 60 days. Also, if you receive welfare benefits, or become a victim of theft, you can get a free report.
What if my credit report has errors?
If you feel that your credit report contains inaccurate or incomplete information, you have the right to dispute those errors. You can dispute the errors with the company that provided the information to the credit bureaus and the credit reporting agency.
It is essential to make a written dispute of these errors with the credit reporting agency. Make copies of any communication between you and the credit reporting agency. Also, keep detailed logs of contact, whether it is an email, written letter, or even a phone call.