Why Credit Bureaus Get It Wrong
And what you can do about it
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Finding an error on your credit report can be frustrating — and not just because you want a credit score that’s a few points higher or because you simply want it noted that you DID pay that account on time. Errors on your credit report can have real consequences when you try to get a mortgage or rent an apartment or buy car.
In short, major financial transactions can be significantly impacted by a mistake on your credit report. Further, absent enforcement by regulatory bodies, there is little incentive for the credit reporting agencies (Experian, Equifax, and TransUnion) to get things right.
That’s why it’s encouraging to see the Consumer Financial Protection Bureau (CFPB) beginning to take action to ensure credit reporting agencies follow the Fair Credit Reporting Act (FCRA).
The consumer protection attorneys at Finn Law Group offer more information on what you need to know when disputing an error on your credit report.
FCRA: Legal Exception For Inaccuracy? (finnlawgroup.com)
Finn’s attorneys noted that CFPB recently issued a report noting that credit bureaus continue to violate the FCRA. Here are some examples of violations cited in the CFPB report:
-Failing to provide a consumer with a copy of their credit report upon request
-Failing to investigate and resolve disputes over the accuracy of information in a credit report
-Including inaccurate or obsolete information in a credit report
-Failing to maintain reasonable procedures to prevent the inclusion of inaccurate information in credit reports
While it is encouraging that the CFPB is taking notice, it is still largely up to the consumer to be persistent in pursuing corrections to their credit report.
The bottom line: Check your credit report (for free) and conduct correspondence in writing by certified mail if you notice any errors.
If you aren’t having luck with the credit bureau, file a complaint with the CFPB — fortunately, they are taking notice and will take action to help you resolve problems.
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