Bad Credit Report Disputes

"I'm only human", do these words sound familiar?  Those are the words of someone who just made a mistake (hopefully, not an intentional one).  In this case it was the credit bureau, your previous employer, your old landlord, or possibly the hospital. 

The good news is, you can dispute credit report errors.  Of course, if you don't review your credit report, then you won't know there are errors to dispute --they happen more often than you probably can imagine. (See this report on Credit Errors.)  These types of mistakes or errors can keep you from buying a home or automobile, go on vacation, or replace your air conditioning unit that just went kaput on the hottest day of the year. 

Learn who is responsible for reporting information, what you can and cannot dispute, how to dispute errors, and view a sample bad credit report dispute letter.

You Made the Mistake, Now Fix It!

By law, any person or organization who regularly provides information about you to the credit bureaus or other credit reporting agencies have a duty to report accurately and fairly.  The Fair Credit Reporting Act was created to protect these specific rights. 

If you review you credit report and find any inaccuracies, then you have a duty to protect your credit.  Immediately contact the credit bureau, as well as the party who inaccurately reported the information.  I would suggest making written contact in order for you to have a paper trail of the dispute.

In the letter, be as specific as possible about what item or items that you are disputing, state the facts and explain why you dispute the information, and request deletion or correction. You may want to enclose a copy of your report with the items in question circled or highlighted.  You may also want to include copies (NOT originals) of any other documents that support your position. In addition, provide your complete name and address. 

Send your letter by certified mail, return receipt requested, so you can document what the bureau received. Keep copies of your dispute letter and enclosures.

The credit bureau then has 30 days to investigate your dispute.  The bureau has to report the dispute to the organization who provided the information being disputed.  If the information provider finds the disputed information to be inaccurate, it must notify all nationwide credit bureaus so they can correct this information in your file.  If the information cannot be verified, the credit bureau must remove that information as well and again, notify all other reporting agencies.  The credit bureau is also required to notify you if any changes are made to your report and supply you with a copy.

You also have the right to request notification of third parties who received a copy of your report over the last 6 months or 2 years if it relates to employment.

Bad Credit Elimination...Hey, Why Don't You Just Dispute It?

You cannot dispute items that are correct, but hurt your credit.  You must have a legitimate reason for the dispute, as well as documentation to support it.  Although, it is up to the information provider to prove that the information reported is accurate.  The good news is, don't get excited just yet, negative information must be removed after 7 years.  Of course their are exceptions, such as:

• Bankruptcy information may be reported for 10 years.
• Lawsuit information or an unpaid lien against you can be reported for seven years or until the statute of limitations runs out, whichever is longer.
• Credit information reported in response to an application for a job with a salary of more than $75,000 has no time limit.
• Credit information reported because of an application for more than $150,000 worth of credit or life insurance has no time limit.
• Criminal convictions may be reported without any time limit.

Additional Information For You 

The Federal Trade Commission (FTC) works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

Sample Bad Credit Report Dispute Letter

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