How to fix errors in your credit report

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(MoneyWatch) The Consumer Financial Protection Bureau will soon be overseeing roughly 30 credit-reporting firms. One area the new federal watchdog will focus on is coming up with a better system for handling consumer complaints about errors in their credit reports.

Since studies show that most credit bureau reports contain at least one error, it's a good idea to finally create some industry standards for resolving these mistakes. Most credit report errors are in the form of incorrect or missing account information, but in other cases information from other people can be included on your credit report. Even if these errors aren't your fault, they can come back to bite you. One possible impact can be a lower credit score.

Feds to supervise credit reporting for first time

Of course, you won't know if your credit report contains errors until you review it. The first step in ensuring it's mistake-free is to get a copy of your credit report from the three credit bureaus; Experian, TransUnion, and Equifax (Here's where you can get your free annual credit report.)

If you find an error on your credit report, you can file a dispute and request a correction using an online process. But that wouldn't be my first choice. Instead, I recommend sending a letter notifying the credit bureaus of the error and requesting a correction the old-fashioned way -- with "snail-mail." It may take longer, but you'll have legal proof that you sought to correct your credit report.

The Federal Trade Commission also outlines several steps for disputing and fixing mistakes on your report:

• Write a letter that details the information you think is incorrect, identify each item, explain why you think it is incorrect, and request the error be removed (You can use this letter as a guide for writing your own.)
• Include copies of documents to back up your claims.
• Also send a copy of your credit report, with each error circled and numbered.
• Send your letter and copies of any documents via certified mail ("return receipt requested") so you have proof of delivery and receipt.

To take advantage of the full protection under the law, you should send your requests to both the credit bureaus and the source of the incorrect information, such as a credit card company, cell phone provider, or other merchant.

The credit reporting companies are required to conduct an investigation of the issues you raised in your letter, which could take about 30 days. They must give you a written summary of the results of their inquiry and any actions they plan to take. If changes are made to your credit report as a result of their investigation, the credit reporting companies must send you an updated copy of the report free of charge. This copy does not count toward the annual limit of one free report from each bureau per year.

If such an investigation does not resolve your dispute, you can request that a statement explaining your position regarding the disputed information be included in your credit report files.

My advice: Get a copy of your credit report and review it -- now. If you notice an error when you are applying for a loan or a job, then it is too late. You won't get the error fixed before they see your report, and that error could end up costing you big time.

[bobrichards2]

The typical advice to contact creditor bureaus does not work for millions and that is the problem. The credit bureaus simply report what the creditors tell them to report. When a consumer complains, the bureaus simply confirm the same incorrect information with the creditors. And millions of consumers get stuck at this point, having no leverage to get the creditors to fix errors. 60 Minutes showed how their reporter, Steve Croft, got nowhere using the typical, ineffective advice to write the credit bureaus. Here is a solution that works and how I got AMEX and Citicorp to change their errors after they refused. The leverage is with the creditors and using small claims court gets their attention every time and is very inexpensive:
http://disputeyourcreditreport.us/ebook

[Honest-Engine]

Here my issues with Credit Reporting Agencies:

1. I don't like paying my rent and car insurance for years and not getting credit for it. Now read Item #2.

2. I don't like my Car Insurance Company (Geico) sending me notices that I'm a increase risk because they don't like my credit report. I obtain a credit report from the Credit Agency in question and found really nothing wrong with the report. True !

3. I don't like how these credit agencies distance themselves from the consumer, hard to contact, and want money out of ya to get anything out of them. I get the feeling their located in a small office basement.

4. I don't like the fact that prospective employers want to see your credit report when I paid cash for years, paid my rent and car insurance for years, and never given credit for it.