Examining your credit reports periodically is a good idea to guard you against identity theft, advises the Federal Trade Commission. When someone gains access to your personal information, such as your name and social security number, to open a credit card account or get a loan and then defaults on the debt, the fraud is reflected on your credit reports. This information can affect your ability to get credit, certain types of insurance and even to get employment, warns the FTC. When you spot fraud on your credit report, it's important to take action immediately.
Clear Up Credit Report Fraud
Step 1
Obtain copies of all of your credit reports from the main credit reporting agencies. If you spot a fraudulent item on one of your reports maintained by one of the major consumer reporting agencies--Equifax, Experian and TransUnion--it could be contained in all three. According to the FTC, you're entitled to a free credit report from these three entities once a year. However, if you believe yourself to be the victim of identity theft, you may be eligible for additional free reports from these reporting agencies. (To get your free credit reports, visit the Resources link below.)
Step 2
Contact the reporting agency, and do so in writing, advises the FTC and the financial advisers at credit.com. Although the reporting agencies do permit you to file a dispute online, sending the agency written communication by way of certified mail, return receipt requested, ensures that your dispute is received. You will also have documentation for your own record-keeping, if you make copies of your dispute.
Step 3
In your letter to the reporting agency, include your name, address and contact information, as well as a list of each item in your credit report that you feel is the result of fraud. Objectively state why you are disputing the item and ask that it be removed.
Step 4
Include supporting documentation. The FTC advises that you include a copy of your credit report with the fraudulent items highlighted, underlined or circled, as well as copies of any supporting paperwork. For example, if you're dealing with identity theft, you may want to include a copy of a police report. Never send original documentation.
Step 5
Give the reporting agency time to investigate. According to the FTC, most disputes are concluded in 30 business days. The agency will notify you of the results of its investigation in writing and send you a revised credit report if the disputed items are removed. Also, according to the Federal Reserve Bureau, the "source of the error" (the company responsible for reporting to the agency) must inform any consumer reporting agency to which they sent the information.
Step 6
If you need additional help clearing fraud from credit reports or coping with other aspects of identity theft, contact the Identity Theft Assistance Center, funded by financial services companies to provide services to victims, as well as arm consumers with valuable information to detect and avoid fraud.
Tips and Warnings
- If the credit reporting agency doesn't resolve your dispute to your satisfaction, the Federal Reserve Bureau states that you can have a statement of around 100 words or less included in your credit file for purposes of clarification.
- If negative information in your credit report is accurate and not the result of fraud, it stays on your record, and only time will remove it--seven years in most cases, or 10 years if you filed for bankruptcy. It's helpful to know what negative information can legitimately be included in your credit report (see Resources) before you file your dispute.
Things You'll Need
- Copies of all three credit reports from Experian, Equifax and TransUnion
- Computer, paper and printer (or pen and paper)
- Envelope(s)
- Money to pay for certified mail service
- Copies of documents supporting your dispute
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