Steps to fix credit report errors:
Just about 1 out of every 4 people have errors on their credit report. The big three credit bureaus -- Equifax, Experian and TransUnion -- process huge amounts of information. A 2004 study found that 25 percent of the credit reports surveyed had errors that were serious enough to cause consumers to be denied credit.
Usually, consumers find out about errors in their credit reports after they're denied credit. To fix credit report errors, here's what to do:
Psyche yourself into the proper frame of mind -- a litigious one. Don't file a lawsuit right off the bat, but everything you do should be done with the aim of impressing a judge and jury if your mess gets that far.
It probably won't get that far. But you never know what it will take to clear up your credit record. In most cases, a phone call or two will do. Or you could end up in a multiyear ordeal ending up in federal court. In modern America, your credit report is your reputation, and there's nothing wrong with going to court to clear your name.
Because you don't know how far this dispute will take you, act as if your first effort to correct an inaccuracy is the first salvo in a legal war. That means you should document everything as it happens, and always act businesslike.
Keep detailed records as events unfold. That will impress a courtroom. If you can show that you wrote your records as events occurred, they will be considered more trustworthy.
Act businesslike. Resist the temptation to scream and yell and do things that would not look good in court.
Who to contact:
Federal Trade Commission consumer response center (877) 382-4357
Equifax
P.O. Box 740241
Atlanta, GA 30374-0241
(800) 685-1111
Experian (formerly TRW)
P.O. Box 2104
Allen, TX 75013-0949
(888) 397-3742
Trans Union Corp.
760 W. Sproul Rd.
Springfield, PA 19064-0390
(800) 888-4213
Sending a certified letter is better than merely calling by phone. Consumer protection laws require you to notify credit bureaus in writing of any inaccuracies they report. It doesn't hurt to call on the phone, but you should back up each conversation with a certified letter summarizing the call. Send it to the person you talked to and send a copy to the credit bureau.
Just remember that the certified letter isn't a substitute for the phone records you should keep. Keep those phone logs and your notes and your certified letters together in a file.
When you're on the phone, pry. Ask for the first and last name of the person you're talking to, the name of the supervisor, and find out the exact name of the department. Get the mailing address. At credit bureaus such as Equifax, the people you talk with work in teams, so ask for the team number of the person you're talking to.
You need to be meticulous for a couple of reasons. First, call centers tend to have high turnover, so knowing the team number and supervisor's name will help you get on the right track if the person who you've been dealing with suddenly leaves or if the problem isn't corrected quickly. And if you file a lawsuit, your copious information will help you establish your case.
Confirm responses. If you get a creditor on the other line saying, 'Yes, I'll correct it,' say, 'Will you send me something confirming that?'"
You want a copy of the UDF, or universal data form. It's a document that your creditor transmits to the credit bureaus to update your report. It tells the credit bureau what sort of change is being made: a balance update, a payment history change, an update of current status, or deletion because of error or some other reason.
If the creditor won't send a UDF, ask for a letter confirming that the creditor notified the credit bureau of the inaccuracy and requested a correction.
Order your credit report so you can check for and fix errors you may find. Each credit bureau; Equifax, Transunion and Experian, may report differently and have different scores. Use our free credit check to gauge how well you are currently managing your credit.
