For many people, their credit score is an important part of their life, and for others, they don’t realize how much a poor credit score can affect their daily lives. Sadly, any significant change in one’s credit score can have devastating consequences. Mistakes on a credit report could lead to denial of a loan, increased cost of credit, or even loss of security clearance.
Mistakes can be anything from a “mixed file” where your information is mixed with someone else’s to fraudulent accounts listed (known as “trade lines”) or the failure of furnishers to remove or update old or obsolete information. In other words, mistakes on your credit report can have a direct impact on you, whether those mistakes accurately reflect a consumer’s habits or not.
Unfortunately, about ⅓ of Americans experience credit report errors; this can negatively affect their ability to apply for housing, loans, or even pursue employment opportunities. Although credit reporting errors can seem like a minor annoyance, if left unchecked, they can significantly impact one’s life, which is why it’s important to be mindful and aware of any mistakes. This is especially true of activity on your credit report, such as lenders pulling your credit report when you never applied for credit, because this can be a red flag for identity theft or account takeover fraud.
How do you combat these problems? Obtain free credit reports authorized by Federal law on annualcreditreport.com.
While some minor errors might not completely change your credit score, they can accumulate over time and make it more difficult to clear up, so be sure all of your personal information the credit bureaus have is accurate.
How Can I Protect Myself?
With the flaws seen in credit report security, it’s important to protect yourself. By being prepared and proactive, you can keep an eye on your credit report. Always check to make sure that it looks accurate. Keep an eye out for suspicious activity, even if it’s small. If you notice something off about your credit report, take steps to secure your account and dispute the inaccurate information in writing.
How often should you check your credit report for errors? Each of the three nationwide credit reporting agencies, TransUnion, Experian, and Equifax, are all required to provide you with a free credit report every 12 months. (Once a week during COVID). And if you live in Maryland, you are entitled to receive them separately under Maryland law. We recommend you get your free credit reports from all three agencies at least once.
Personal Info Mistakes and Account Inaccuracies
You may face a situation where you can’t access your credit report. If this happens, it’s the right time to contact a credit report lawyer. If you can’t access your report online or by phone, you’ll need to write a letter to the reporting agency. Your letter should include a valid form of identification, such as a driver’s license number. You should also provide proof of address and any other information proving your identity.
If extensive errors are found on your report, you’ll need to dispute every correction to the credit reporting agency; this will always need to be done in writing. You’ll also need to include your full name and address, a copy of your credit report, your account number, and copies of documents that support your claim.
What Should I Do if I Find Errors on My Credit Report?
If you notice suspicious activity on your credit report, you should first contact the credit bureau directly. Each bureau has a dedicated department for reporting errors. From there, proceed to wait for the credit bureau or furnisher to follow up with you; this may take up to 45 days after the error is reported. If they agree that there was inaccurate information on your report, they should update it to remove the inaccuracies. Review the results after 30 days or so and see if your credit report is updated.
However, the process doesn’t always go so smoothly. If they refuse to fix the errors, it’s time to consider filing a lawsuit to force them to fix it. Fortunately, under the Fair Credit Reporting Act and the Maryland Consumer Protection Act statutes, they may be required to pay your attorney’s fees if you prevail in court. In many cases, immediately contacting a credit report lawyer is the best course to further the investigation.
At the Holland Law Firm, we have dealt with hundreds of credit reporting errors for our clients over the years. Just like snowflakes, no two reporting errors are the same, and it takes experience and insight to navigate the challenges the credit bureaus can present when clearing up errors.
If you or someone you know are battling with the credit bureaus, trying to clear up an error, you don’t have to feel helpless. We can help — contact us.