How to Dispute Credit Report Errors -- April 1994

Your credit report contains important information about you.  It 

generally includes facts about where you work and live and your 

bill-paying habits.  It also may state whether you've been sued 

or arrested or have filed for bankruptcy.  Companies called 

credit reporting agencies or credit bureaus compile and sell your 

credit report to businesses, which use it to evaluate your 

applications for credit, insurance, employment, and other 

purposes allowed by federal law.  Therefore, it is important that 

your credit report contain complete and accurate information.

Some financial advisors suggest that you review your report every 

three or four years to check for inaccuracies or omissions.  You 

also may want to check your report sooner if you are considering 

a major purchase, such as buying a home.


This brochure explains how to obtain a copy of your credit report 

and how to dispute errors.  It also provides a sample dispute 

letter and lists resources for additional credit information.



How to Obtain Your Credit Report

If you have been denied credit, insurance, or employment because 

of information that was supplied by a credit reporting agency, 

the Fair Credit Reporting Act requires the report recipient to 

give you the name and address of the credit reporting agency that 

supplied the information.  If you contact that agency to learn 

what is in your file within 30 days of receiving the denial 

notice, your report is free.  

If you simply want a copy of your report, call the credit 

reporting agencies listed in the Yellow Pages under "credit" or 

"credit rating and reporting."  Call each credit reporting agency 

listed since more than one agency may have a file on you, some 

with different information.  You may have to pay a reasonable 

charge for each report.



How To Correct Errors

You have the right, under the Fair Credit Reporting Act, to 

dispute the completeness and accuracy of information in your 

credit file.  When a credit reporting agency receives a dispute, 

it must reinvestigate and record the current status of the 

disputed items within a "reasonable period of time," unless it 

believes the dispute is "frivolous or irrelevant."  If the credit 

reporting agency cannot verify a disputed item, it must delete 

it.  If your report contains erroneous information, the credit 

reporting agency must correct it.  If an item is incomplete, the 

credit reporting agency must complete it.  For example, if your 

file showed that you were late in making payments on accounts, 

but failed to show that you were no longer delinquent, the credit 

reporting agency must show that your payments are now current.  

Or if your file showed an account that belongs only to another 

person, the credit reporting agency would have to delete it.  

Also, at your request, the credit reporting agency must send a 

notice of correction to any report recipient who has checked your 

file in the past six months.


If a reinvestigation does not resolve your dispute, the Fair 

Credit Reporting Act permits you to file a statement of up to 100 

words to explain your side of the story.  The credit reporting 

agency must include this explanation in your report each time it 

sends it out.  Credit reporting agency employees often are 

available to help you word your statement.


Be aware, however, that when negative information in your report 

is accurate, only the passage of time can assure its removal.  

Credit reporting agencies are permitted by law to report 

bankruptcies for 10 years and other negative information for 7 

years.  Also, any negative information may be reported 

indefinitely for use in the evaluation of your application for:



l   $50,000 or more in credit;

l   a life insurance policy with a face amount of $50,000 or 

more; or

l   consideration for a job paying $20,000 or more.



How to Register a Dispute


You must make your dispute directly to the credit reporting 

agency.  Although the Fair Credit Reporting Act does not require 

it, the Federal Trade Commission staff recommends that you submit 

your dispute in writing, along with copies (NOT originals) of 

documents that support your position.


In addition to providing your complete name and address, your 

letter should clearly identify each item in your report you 

dispute, explain why you dispute the information, state the 

facts, and request deletion or correction.  You may want to 

enclose a copy of your report with the items in question circled. 

Your letter may look something like the one at the end of this 

brochure.


Send your dispute by certified mail, return receipt requested, 

and keep copies of your dispute letter and enclosures.  By doing 

so, you can document what the credit reporting agency received.



Adding Accounts to Your File


Your credit file may not reflect all of your credit accounts.  

Although most national department store and all-purpose bank 

credit card accounts will be included in your file, not all 

creditors supply information to credit reporting agencies.  Those 

not reporting to credit reporting agencies include, for example, 

some travel, entertainment, and gasoline card companies, local 

retailers, and credit unions.  


If you have been told that you were denied credit because of an 

"insufficient credit file" or "no credit file" and you have 

accounts with creditors that do not appear in your credit file, 

you can ask the credit reporting agency to add this information 

to future reports.  Although they are not required to do so, many 

credit reporting agencies will add other verifiable accounts for 

a fee.



For Further Information


The Federal Trade Commission has a series of Facts for Consumers 

discussing credit issues.  Titles include:

Building a Better Credit Record

Credit and Divorce

Credit Billing Errors

Fair Credit Billing

Fair Credit Reporting

Fair Debt Collection

Fix Your Own Credit Problems

Solving Credit Problems

Women and Credit Histories


To obtain free copies of these publications, contact: Public 

Reference, Federal Trade Commission, Washington, D.C. 20580; 

(202) 326-2222.  TDD (202) 326-2502.  You also may contact Public 

Reference for a copy of our Best Sellers, a listing of the FTC's 

consumer brochures.



SAMPLE FAIR CREDIT REPORTING ACT DISPUTE LETTER


Date

Your Name

Your Address

Your City, State, Zip Code



Complaint Department

Name of Credit Reporting Agency

Address

City, State, Zip Code



Dear Sir or Madam:



I am writing to dispute the following information in my file.  

The items I dispute also are encircled on the attached copy of 

the report I received.


(Identify item(s) disputed by name of source, such as creditors 

or tax court, and identify type of item, such as credit account, 

judgment, etc.)  This item is  (inaccurate or incomplete)  

because  (describe what is inaccurate or incomplete and why).  I 

am requesting that the item be deleted  (or request another 

specific change) to correct the information.  Enclosed are copies 

of  (use this sentence if applicable and describe any enclosed 

documentation, such as payment records, court documents) 

supporting my position.


Please reinvestigate this (these) matter(s) and  (delete or 

correct) the disputed item(s) as soon as possible.



Sincerely,



Your name



Enclosures: (List of whatever you are enclosing)