Subhan Tariq, Esq
CREDIT DISPUTE PROCESS
WHAT TO DO IF YOUR CREDIT REPORT HAS FALSE DATA
After you analyze the credit report you received from the credit bureau and you notice a piece of misinformation that affects your credit score badly. You should know then what your next step should be to eliminate that negativity from your credit report.
The Fair Credit Report Act provides consumers with various rights and remedies to dispute inaccurate or incorrect information on their credit reports. The consumer upon
discovering the error has to send a dispute letter to the credit bureau contesting the
inaccurate items in the report. It can be sent by certified mail or the consumer can contact the bureau online. The same letter should also be sent to the furnishers that actually reported inaccurately to the bureau. The letter should contain all your personal information, disputed items listed and the reason why are you challenging the information.
The Credit bureaus are bound by law to investigate the matter and respond to the consumer within 30 days. They can investigate the dispute on their own or forward the matter to the furnishers to verify the accuracy of the information. Once it is found that the inaccuracy did occur and there was a defect in the credit report, it is either deleted or updated by the credit bureau.
On the other hand, if the furnishers confirm the accuracy of the information, the credit
bureau notifies the consumer about the verification from the furnisher and refuses to fix the disputed information. In that case, the consumer might dispute again by including more information that can support his claim or he can under the law sue the credit bureau or the furnishers or both for being in violation of the Fair Credit Reporting Act.