Disputing Inaccurate Credit Reports
Illinois Consumer Protection Attorneys
Accurate credit reports are more important than ever now that lenders are requiring higher credit scores for most loans. If you have unsuccessfully tried to get errors on your credit report fixed, the attorneys at Edelman, Combs, Latturner & Goodwin, LLC, in Chicago, Illinois, may be able to help. Contact us to learn more in a free initial consultation.
Types of Errors on Your Credit Reports
- Inaccurate Entries
There are many types of inaccurate information that can show up on credit reports. The credit bureaus sometimes misreport information from public court records ¾ such as reporting a judgment in your favor as a judgment against you. The credit bureaus may also mistakenly report a debt that has been settled as unpaid, a debt as included in a bankruptcy when it was not, a debt paid on time as late, and other such errors.
If there is inaccurate information in your credit report, the first step is to send a letter to each credit bureau and creditor explaining exactly why the information is inaccurate along with any proof you have to support your dispute. You should send the letter to the address listed on each credit report by certified mail. Most bureaus also allow on-line disputes, but if you use those methods, we recommend printing a hard copy and keeping a log of when the disputes were submitted.
You should also keep a log of any telephone conversations you have with the credit bureaus.
Once your dispute is submitted, the credit bureaus are required to notify the furnisher of your dispute and request verification of the information you are disputing. If all goes well, this will result in the errors being removed from your credit report. If it does not, save all of your letters to and from the credit bureaus along with copies of the credit reports containing the errors and contact Edelman, Combs, Latturner & Goodwin, LLC.
If you have been turned down for credit or suffered other damages as a result of these errors, save all evidence of your damages and keep detailed notes.
- Merged credit files
Sometimes the credit bureaus combine all or part of your credit file with the file of another person with a similar name and/or social security number. If that person has credit problems, your credit score may be dramatically reduced. You should follow the same dispute process as used when there are inaccurate entries on your credit report. If the credit bureaus do not fix the mix-ups after receiving your disputes, the lawyers at Edelman, Combs, Latturner & Goodwin, LLC, can help.
- Identity theft
Identity theft is a growing problem, and victims must go through a lengthy and sometimes frustrating process to correct the harm caused by identity thieves. If you are the victim of identity theft, make sure to file an identity theft police report and save a copy. You should also contact the credit bureaus and ask them to put a fraud alert on your credit file to prevent further damage. Lastly, contact any company that has issued credit in your name to inform them of the fraud and to demand that they immediately close the account.
For more information on what to do if you are the victim of identity theft visit the Federal Trade Commission Website (http://www.ftc.gov/bcp/edu/microsites/idtheft/) and Illinois Attorney General's Office Website (http://www.illinoisattorneygeneral.gov/consumers/idtheft.html).
- Out of date entries
There are limits on how long derogatory items can remain on your credit reports. In general, a derogatory item must be removed seven years after the date of last activity. We have found that some debt collection agencies attempt to change the date of last activity in order to keep items on people's credit report past the seven year limit (a process known as "reaging"). If you have items on your credit report that you believe are too old, contact us for a free consultation.
How to Get Copies of Your Credit Report
The major credit bureaus (TransUnion, Experian and Equifax) are required to provide you with one free copy of your credit report each year. The best way to obtain a copy is to send a letter requesting a copy to each bureau containing your full name, address (current and prior if you have moved within two years), social security number, date of birth, home and work phone numbers and current employer to the addresses listed below:
TransUnion, LLC
P.O. Box 1000
Chester, PA 19016-1000
800-888-4213
Equifax
P.O. Box 105873 or 105069 (for free annual report)
Atlanta, GA 30348
800-685-1111
Experian
P.O. Box 2104
Allen, TX 75013-2104
This is a link to a fillable PDF form to request a Free Annual Credit Report link to what is currently on our site
If you are having credit reporting problems, it is important to save all copies of your credit report as evidence. The credit reporting agencies do not always save copies of the reports they issue.
How to Dispute Errors on Your Credit Report
The first step is to send a letter to each credit bureau explaining exactly why the information is inaccurate along with any proof you have to support your dispute. You should send the letter to the address listed on each credit report by certified mail. Most bureaus also allow on-line disputes, but if you use those methods, we recommend printing a hard copy and keeping a log of when the disputes were submitted. You should also keep a log of any telephone conversations you have with the credit bureaus. It is also helpful to send your dispute letter to the creditor whose information you are disputing.
Once your dispute is submitted, the credit bureaus are required to notify the furnisher of your dispute and request verification of the information you are disputing. If the credit bureau requests additional information in response to your letter, you should attempt to supply it.
If all goes well, this will result in the errors being removed from your credit report. If it does not, save all of your letters to and from the credit bureaus along with copies of the credit reports containing the errors and contact a consumer attorney at Edelman, Combs, Latturner & Goodwin, LLC. If you have been turned down for credit or suffered other damages as a result of the errors, save all evidence of your damages and keep detailed notes.
What to Do if You Are the Victim of Identity Theft
Identity theft is a growing problem, and victims must go through a lengthy and frustrating process to correct the harm caused by identity thieves. If you are the victim of identity theft, make sure to file a police report and save a copy. You should also contact the credit bureaus and ask them to put a fraud alert on your credit file to prevent further damage. Lastly, contact all companies that issued credit in your name to the identity thief and follow their procedures for reporting fraud.
You will probably need to file a "fraud" affidavit with each company. You should also send letters disputing every incorrect entry to each credit bureau whose report contains errors related to the identity theft.
More detailed information on what to do if you are the victim of identity theft can be found on the Federal Trade Commission Website (http://www.ftc.gov/bcp/edu/microsites/idtheft/) and the Illinois Attorney General's Office Website (http://www.illinoisattorneygeneral.gov/consumers/idtheft.html).
Keep careful track of all documents relating to credit reporting problems caused by the theft of your identity, including all letters to and from the credit bureaus and companies that issued the credit in your name, copies of all credit reports you obtain, copies of all fraud affidavits you file, and other relevant information.
If you have been unsuccessful at correcting credit reporting problems caused by identity theft, contact Edelman, Combs, Latturner & Goodwin, LLC.
What Rights Do You Have Under the Fair Credit Reporting Act?
The Fair Credit Reporting Act allows consumers to sue the credit bureaus and companies who supplied inaccurate information to the credit bureaus if they do not correct mistakes after receiving a dispute from the consumer. Consumers can obtain statutory damages of up to $1000, as well as actual and punitive damages in some cases. Actual damages can include extra interest you paid if other creditors increased the interest rates on your credit cards, denials of loan applications, and medical expenses that resulted from stress related illnesses.
If you have unsuccessfully tried to get the credit bureaus to remove errors from your credit report, contact us
Should I Hire a Credit Repair Company?
Most credit reporting errors can be fixed by going through the dispute process. There is no need to pay somebody else to do so, and the dispute letters generated by many credit repair companies do not do a good job of describing the consumers' actual dispute. If the information you are disputing is truly wrong, and the credit bureaus have refused to correct it, we would recommend consulting with an attorney. Most credit repair companies simply cannot be trusted, especially if their strategy is to dispute everything that is derogatory on your credit report, regardless of whether it is accurate or not.
