Collections can appear on your credit report for a variety of reasons. The most common is that the account is valid and is less than seven years old. An older collection may also appear because the credit bureau didn't remove it after the seven year reporting period or because a debt collection firm bought it and started illegally reporting it again. Collections can even appear if they do not belong to you, as you can be confused with someone with a similar name. Fortunately you can dispute collections on credit reports and get them removed.
Step 1
Obtain a copy of your credit report from the major credit reporting companies such as TransUnion, Experian and Equifax. Review all of your credit reports to determine which ones are listing the collection account. TransUnion, Experian and Equifax are not related companies so they collect and report their data independently. A collection can appear on one, two or all of your reports. Get copies through annualcreditreport.com, which provides them free every year under federal law.
Step 2
Determine the grounds under which you will dispute the collection report. The reason is obvious if the account does not belong to you or if it is more than seven years old. It cannot be reported after seven years, even if a new debt collector buys it, unless you admit to owing it and make payment arrangements when the collector calls. You may still have a valid dispute reason even if the collection account belongs to you and is recent. Credit Infocenter advises that you can challenge any incorrect information, such as the wrong date, account number, creditor name or account balance, and possibly get the collection removed.
Step 3
File an individual dispute with each bureau by writing a letter and sending it through certified mail with a return receipt. All three bureaus allow you to fill out an online dispute form, but the Federal Trade Commission says a written dispute is better. Send copies of proof to support your dispute, such as statements that show the correct account number, balance or date or paperwork that shows the true name of the creditor.
Step 4
Check your credit reports again if you get a favorable response from the credit bureaus. They will notify you within a month on what they found in their research and will remove the collection account if there was an error. The usually follow through with the removal, but it can sometimes be overlooked so it's best to review your report to make sure it really is gone.
Tips and Warnings
- Look for any other mistakes when scanning your credit reports for incorrect collection accounts. Dispute any other errors you might find at the same time you dispute the collection information.
- Liz Pulliam Weston of MSN Money warns that old debts that went into collections and passed the statute of limitations may be bought by new collectors for pennies. The new collector may try to trick you into agreeing owe the debt and setting up a payment plan or giving bank or credit card information over the phone. This will restart the clock on the debt and allow to be added to your credit reports. Some debt collectors add it to your report even when they are not legally entitled to do so. Pulliam Weston says not to talk to collectors about debts that are past the statute of limitations, which varies by state. This will prevent you from inadvertently restarting the clock. Immediately challenge any old debts that pop up on your credit reports.
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