| Your credit report--a type of consumer | | | | give you the written results and a free copy of your |
| report--contains information about where you work | | | | report if the dispute results in a change. If an item is |
| and live and how you pay your bills. It also may show | | | | changed or removed, the CRA cannot put the |
| whether you've been sued or arrested or have filed | | | | disputed information back in your file unless the |
| for bankruptcy. Companies called consumer reporting | | | | information provider verifies its accuracy and |
| agencies (CRAs) or credit bureaus compile and sell | | | | completeness, and the CRA gives you a written |
| your credit report to businesses. Because businesses | | | | notice that includes the name, address, and phone |
| use this information to evaluate your applications for | | | | number of the provider. |
| credit, insurance, employment, and other purposes | | | | Also, if you request, the CRA must send notices of |
| allowed by the Fair Credit Reporting Act (FCRA), it's | | | | corrections to anyone who received your report in |
| important that the information in your report is | | | | the past six months. Job applicants can have a |
| complete and accurate. | | | | corrected copy of their report sent to anyone who |
| Some financial advisors suggest that you periodically | | | | received a copy during the past two years for |
| review your credit report for inaccuracies or | | | | employment purposes. If a reinvestigation does not |
| omissions. This could be especially important if you're | | | | resolve your dispute, ask the CRA to include your |
| considering making a major purchase, such as buying | | | | statement of the dispute in your file and in future |
| a home. Checking in advance on the accuracy of | | | | reports. |
| information in your credit file could speed the | | | | Second, in addition to writing to the CRA, tell the |
| credit-granting process. | | | | creditor or other information provider in writing that |
| Getting Your Credit Report | | | | you dispute an item. Again, include copies (NOT |
| If you've been denied credit, insurance, or | | | | originals) of documents that support your position. |
| employment because of information supplied by a | | | | Many providers specify an address for disputes. If |
| CRA, the FCRA says the company you applied to | | | | the provider then reports the item to any CRA, it |
| must give you the CRA's name, address, and | | | | must include a notice of your dispute. In addition, if |
| telephone number. If you contact the agency for a | | | | you are correct-that is, if the disputed information is |
| copy of your report within 60 days of receiving a | | | | not accurate-the information provider may not use it |
| denial notice, the report is free. In addition, you're | | | | again. Accurate Negative Information When negative |
| entitled to one free copy of your report a year if | | | | information in your report is accurate, only the |
| you certify in writing that | | | | passage of time can assure its removal. Accurate |
| (1) you're unemployed and plan to look for a job | | | | negative information can generally stay on your |
| within 60 days, | | | | report for 7 years. There are certain exceptions: |
| (2) you're on welfare, or | | | | ·Information about criminal convictions may be |
| (3) your report is inaccurate because of fraud. | | | | reported without any time limitation. |
| Otherwise, a CRA may charge you up to $9.00 for a | | | | ·Bankruptcy information may be reported for 10 |
| copy of your report. | | | | years. |
| If you simply want a copy of your report, call the | | | | ·Credit information reported in response to an |
| CRAs listed in the Yellow Pages under "credit" or | | | | application for a job with a salary of more than |
| "credit rating and reporting." Call each credit bureau | | | | $75,000 has no time limit. |
| listed since more than one agency may have a file on | | | | ·Credit information reported because of an |
| you, some with different information. The three | | | | application for more than $150,000 worth of credit or |
| major national credit bureaus are: | | | | life insurance has no time limit. |
| ·Equifax, P.O. Box 740241, Atlanta, GA | | | | ·Information about a lawsuit or an unpaid |
| 30374-0241; (800) 685-1111. | | | | judgment against you can be reported for seven |
| ·Experian P.O. Box 2002, Allen, TX 75013; (888) | | | | years or until the statute of limitations runs out, |
| EXPERIAN (397-3742). | | | | whichever is longer. Criminal convictions can be |
| ·Trans Union, P.O. Box 1000, Chester, PA 19022; | | | | reported without any time limit. |
| (800) 916-8800. | | | | Adding Accounts to Your File |
| Correcting Errors | | | | Your credit file may not reflect all your credit |
| Under the FCRA, both the CRA and the organization | | | | accounts. Although most national department store |
| that provided the information to the CRA, such as a | | | | and all-purpose bank credit card accounts will be |
| bank or credit card company, have responsibilities for | | | | included in your file, not all creditors supply |
| correcting inaccurate or incomplete information in | | | | information to CRAs: Some travel, entertainment, |
| your report. To protect all your rights under the law, | | | | gasoline card companies, local retailers, and credit |
| contact both the CRA and the information provider. | | | | unions are among those creditors that don't. If |
| First, tell the CRA in writing what information you | | | | you've been told you were denied credit because of |
| believe is inaccurate. Include copies (NOT originals) of | | | | an "insufficient credit file" or "no credit file" and you |
| documents that support your position. In addition to | | | | have accounts with creditors that don't appear in |
| providing your complete name and address, your | | | | your credit file, ask the CRA to add this information |
| letter should clearly identify each item in your report | | | | to future reports. Although they are not required to |
| you dispute, state the facts and explain why you | | | | do so, many CRAs will add verifiable accounts for a |
| dispute the information, and request deletion or | | | | fee. You should, however, understand that if these |
| correction. You may want to enclose a copy of your | | | | creditors do not report to the CRA on a regular |
| report with the items in question circled. Your letter | | | | basis, these added items will not be updated in your |
| may look something like the sample below. Send your | | | | file. |
| letter by certified mail, return receipt requested, so | | | | Sample Dispute Letter |
| you can document what the CRA received. Keep | | | | Date |
| copies of your dispute letter and enclosures. | | | | Your Name |
| CRAs must reinvestigate the items in | | | | Your Address |
| question--usually within 30 days--unless they consider | | | | Your City, State, Zip Code |
| your dispute frivolous. They also must forward all | | | | Complaint Department |
| relevant data you provide about the dispute to the | | | | Name of Credit Reporting Agency |
| information provider. After the information provider | | | | Address |
| receives notice of a dispute from the CRA, it must | | | | City, State, Zip Code |
| investigate, review all relevant information provided | | | | Dear Sir or Madam: |
| by the CRA, and report the results to the CRA. If | | | | I am writing to dispute the following information in |
| the information provider finds the disputed | | | | my file. The items I dispute are also encircled on the |
| information to be inaccurate, it must notify all | | | | attached copy of the report I received. (Identify |
| nationwide CRAs so they can correct this information | | | | item(s) disputed by name of source, such as |
| in your file. l Disputed information that cannot be | | | | creditors or tax court, and identify type of item, |
| verified must be deleted from your file. | | | | such as credit account, judgment, etc.) |
| ·If your report contains erroneous information, | | | | This item is (inaccurate or incomplete) because |
| the CRA must correct it. | | | | (describe what is inaccurate or incomplete and why). |
| ·If an item is incomplete, the CRA must | | | | I am requesting that the item be deleted (or request |
| complete it. For example, if your file showed that | | | | another specific change) to correct the information. |
| you were late making payments, but failed to show | | | | Enclosed are copies of (use this sentence if applicable |
| that you were no longer delinquent, the CRA must | | | | and describe any enclosed documentation, such as |
| show that you're current. | | | | payment records, court documents) supporting my |
| ·If your file shows an account that belongs only | | | | position. Please reinvestigate this (these) matter(s) |
| to another person, the CRA must delete it. | | | | and (delete or correct) the disputed item(s) as soon |
| When the reinvestigation is complete, the CRA must | | | | as possible. |