CREDIT REPORTING PROBLEMS

CREDIT REPAIR FRAUD

Information on your credit report must be "complete and accurate", but most people's credit reports still contain many errors. Both credit reporting agencies and creditors have a duty to correct inaccurate information.

There are some simple steps you can take yourself to correct inaccurate information. Failing that, state and federal law allow consumers to sue to recover their actual damages, statutory penalties, punitive damages, and attorneys fees and costs for violations. Here are some areas to watch.

Inaccurate Entries: Many inaccuracies can be fixed by sending a certified letter to the three major credit reporting agencies, setting forth all of the facts (and any written proof) that the debt is reported inaccurately. You should copy this letter to the creditor or debt collector whose name appears on your credit reports. Creditors all have a special credit reporting address, and this is the only address you should use (get it from your credit reports at the end). The credit reporting agencies then notify the creditor who furnished the information of your dispute, and ask them for verification. If the creditor fails to respond within 30 days, the disputed debt will be wiped off your credit record. Often though, creditors and debt collectors nevertheless improperly verify the debt, or the credit reporting agency does not do a thorough investigation, and the inaccuracy continues being reported. Please contact us or a consumer attorney in your area if your letters fail to clear up the problem.

Identity Theft. This is now the most frequent consumer complaint filed with the Federal Trade Commission. Creditors and the credit reporting agencies have a legal duty to investigate and clear up the record of the victim. The first step is to tell the three major credit reporting agencies that you suspect identity theft, so they can flag your account and prevent further fraudulent credit accounts from being opened. You should also file a police report and contact each creditor.

Impermissible Access. Your credit report is accessible only for limited purposes. Surprisingly often, companies will unlawfully access your credit file for marketing or other unauthorized purposes. This is a serious invasion of privacy. Check the portion of your credit report that lists who accessed your information carefully, and contact us or a consumer attorney in your area if you suspect your history was improperly accessed. If you don't want to receive those pre-approved credit offers anymore, send a letter to each of the three credit reporting agencies, and your file will be permanently blocked from these promotions.

Identity Mix-ups. Sometimes the credit file of one person is merged with that of another, resulting in unfair adverse credit history for the person with a cleaner record. The credit reporting agency must clear up the problem, or is liable for damages, penalties, attorneys fees, and perhaps punitive damages.

Failure to Report Account as "Disputed." Creditors and debt collectors must report an account as "disputed" if you so notify them, even if they disagree. Most creditors simply ignore this requirement and are liable for their failure. Use certified mail to let the creditor know that you dispute the account and expect it to be reported that way.

Credit Repair Companies.
Unfortunately, "credit repair" companies are virtually always a scam. They charge for what you can do yourself -- ask the credit reporting agencies to fix their errors. Worse, some of these companies try to "clean" your record by intentionally confusing the credit reporting agency's computer files, leading to more problems than you started with. If a company tells you it can remove truthful but adverse information, hold onto your wallet.


How to Contact Equifax, Experian, and Trans Union

The Big Three Credit Reporting Agencies are listed below. Under recent federal law, they must give you one free annual credit report. To get your credit reports, the best method is to send a written request. Make sure you ask for your credit score as well. An online alternative is annualcreditreport.com, but do NOT use the credit agencies' own websites because doing so might subject you to arbitration! Each agency requires identifying information before they will act, and sometimes payment of $8.00 (differs by state). You are exempt from paying if you are getting your annual credit report, were denied credit in the last sixty days, you receive public assistance, you are unemployed and plan to seek employment in the next 60 days, or you believe you are a victim of fraud. In your letter, provide your full first, middle and last names, social security number, spouse's name, date of birth, current address and dates lived there, previous addresses if current address has been valid for less than two years, current employer, and home and work phone numbers.

Equifax
P.O. Box 105873 or PO Box 105069 (for free yearly copy)
Atlanta, GA 30348
(800) 685-1111

Experian (formerly TRW)
P.O. Box 2104
Allen, TX 75013-2104
(888) 397-3742

Trans Union LLC
P.O. Box 1000
Chester, PA 19016-1000
(800) 888-4213

Credit Repair Fraud Contact Form

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