The Key to Winning Disputes With Credit Bureaus - Know Your Rights!
Posted by: Guest Author / Category: CreditThe federal government established the Fair Credit Reporting Act on April 25, 1971 so as to protect consumers against having inaccurate, misleading or obsolete information included in their credit reports. The intent in this law was that the credit bureaus should operate in a reasonable and fair manner when they work with consumers.
The FCRA, or Fair Credit Reporting Act, breaks out a list of procedures and rights for you to follow when you challenge any information; in doing so, you can clear negative information off your credit report and reestablish your good credit history. This is true, by the way, regardless of what your past credit history has been. By understanding your rights and using this information to your advantage, you can truly remove information about late payments, collection accounts, bankruptcy filings, judgments, charge-offs, and other negative information from your files. Once done, the removal is permanent.
What do you need to do first? First, you need to obtain copies of your credit reports from each of the three major credit bureaus; you can find addresses for each of these in the Yellow Pages under “Credit Reporting Agencies,” in the phone book or on the Internet Yellow Pages listings. If you’ve been denied credit within the past 60 days, you should be able to get a free copy of your credit report by enclosing a copy (not the original) of the letter stating your denial, along with your request for a credit report. In addition, you’ll need to also include your date of birth, full name, Social Security Number, and any addresses you’ve lived at for the last five years. If you’ve not been denied credit within the last 60 days, you can still purchase a report from each credit bureau for a small fee. In California, for example, it’ll cost you eight dollars to get a copy of the report from each of the three major bureaus. The cost may be different in other states.
In addition, you can also visit credit bureaus in person and ask to review your file. Call the bureau in question and ask to make an appointment. Then, present the proper identification and pay the fee necessary. You can also be accompanied by one of the person you choose if you wish to do so. The law gives you this right.
If you request your credit report by mail, you should receive a copy within three weeks. You will also receive an explanation of the various codes and abbreviations the report contains. According to the FCRA, you have the right to dispute any remark on your report that you “reasonably believe” to be inaccurate or incomplete. The act requires the credit bureau to reinvestigate those disputed items within “a reasonable period of time” - interpreted by the Federal Trade Commission as 30 days. If the bureau finds that the information was incorrect, obsolete, or could no longer be verified, it must correct or delete the information.
In addition, if the bureau does not respond to your initial dispute challenge within a reasonable time, you can follow up with another letter. This time, demand (don’t request) that the bureau should respond to your dispute investigation request immediately, or you will be forced to take legal action. Wait about two weeks in order to give them time to comply, and make sure you keep copies of all correspondence you undertake.
If the bureau persists in violating your rights by refusing to reinvestigate your legitimate dispute, send them a final letter demanding action. This time, send copies of your letter, along with the original request, to the Federal Trade Commission and your local office of the attorney general.
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Tags: Bankruptcy, Credit, credit cards, credit reports, economic security, financial security, money, Mortgage, Personal Finance, wealth