Hudson Valley Musing

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What Can You Do When A Creditor Reports Incorrectly On Your Credit Report?

Having good credit is so important, it affects your ability to get a loan, insurance, and even factor into getting certain jobs.  Many credit reports do have erroneous information which should be addressed.

It is important to review your credit report.  George Souto explain the procedure for addressing issues that may arise.

This blog is the second in a two part series I began yesterday.  The first blog yesterday was How Long Does Information Remain On A Credit Report?  Today's blog is on how to correct errors on a Credit Report.  It is not unusual to find creditors reporting items incorrectly, and that is not the kind of SURPRISE anyone wants to see when they are reviewing their Credit Report.  So What Can You Do When A Creditor Reports Incorrectly On Your Credit Report?

When I am reviewing a Credit Report with a Borrowers, and one of their Creditors has incorrectly reported a:

  • Late Payment
  • Collection
  • Judgment

I first instruct the Borrower to contact the Credit Reporting Company I use, Strategic Information Resource, and they assist the Borrower in making the necessary disputes to correct how the item(s) is being reported on their Credit Report.

Most Creditors report monthly to all three Credit Bureaus Equifax, Experian, or TransUnion.  Therefore, the dispute needs to be submitted to all three in order to correct the mistake and adjust the Credit Scores.  I instruct the Borrower to send proof the item(s) were paid to Strategic Information Resource, and Strategic Information Resource will file the dispute on the behalf of the Borrower with all three Credit Bureaus.

However, those who are not applying for a Mortgage and therefore do not have access to this service, then the following is What Can You Do When A Creditor Reports Incorrectly On Your Credit Report?

  • You will need to write a letter of dispute to each of the three Credit Bureaus Equifax, Experian, or TransUnion along with proof the items you are disputing are being reported incorrectly. The letter needs to include the Trade Line, Account Number(s), and reason why you believe it is reporting incorrectly.
  • Under the Fair Credit Reporting Act, each Credit Bureaus must contact the Creditor or person the dispute is being filled against within 5 days of the receipt of the request. The Creditor or person the dispute is filled against then has to give a written reply back to the Credit Bureaus within 30 days of the date the dispute was filled.
  • The Credit Bureaus then have 5 days from receipt of the creditor's or person’s written reply, to provide a written report with their findings. They will also need to provide a copy of a revised Credit Report if changes were made.

So what happens if the procedure above is not followed? There are 3 possible scenarios:

  • No response from the Creditor or person the dispute is filled against.  If that happens the data is removed.
  • The Creditor or person that the dispute is filled against shows proof they are correct.  If that is the case the data remains.
  • The Creditor or person the dispute was filled against acknowledges they were wrong or partially wrong, and they correct the item(s) they are reporting incorrectly.

In each of the above scenarios the person who submits the dispute must be notified by the Credit Bureaus of the results, but there is one little twist to the first scenario. If the Creditor or person who the dispute was filled against does not respond within the required time period, and the correction is made as a result of that, the error can still show up later if the creditor at a later date decides to reports the item again.  So if the correction is made because the Creditor or person the dispute was filled against did not respond, the person who submitted the dispute must continue to monitor their Credit Report, because the error could show up again at a later date.

Everyone is entitled to one free Credit Report per year from each of the Credit Bureaus.  It is wise to take advantage of this every year, so if a Creditor is reporting something incorrectly, or if fraud is going on, it can be addressed quickly.  Now that you know What You Can Do When A Creditor Reports Incorrectly On Your Credit Report, all you need to do is just follow the above proceed if it happens.

 

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum,# Haddam,# East Haddam,# Chester,# Deep River, and# Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

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  162 Deer Run Road, Red Hook NY 12571| 845-758-6842| Cell 845-594-9947

  Jennifer Fivelsdal  |   Real Estate Broker  |  jennifer@jfivehomes.com  www.jfivehomes.com  or  www.midhudsonhomevalue.com

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