According to The Consumer Reports Money Book, 48 percent of credit reports are inaccurate. Many mistakes are fraudulent charges. The Money Book reports that "false credit records can be difficult and time-consuming to correct," but disputing fraudulent charges is important. The Federal Trade Commission (FTC) advises people to review their credit reports periodically instead of waiting until just before they apply for a loan, insurance or job. Applications are often rejected because of false information that isn't corrected in time.
Get Reports
Step 1
Ask the national credit bureaus in writing for a copy of your report. A letter is better proof that you asked than a phone call or email. Write your Social Security number and birth date on the letters so you don't receive reports of people with the same name. According to the 2003 Fair and Accurate Credit Transactions (FACT) Act, consumers are entitled to one free report annually from each credit bureau. The addresses are:
Equifax
P.O. Box 740241
Atlanta, Ga. 30374-0241
Experian
P.O. Box 2104
Allen, Texas 75103-2104
TransUnion
P.O. Box 1000
Chester, PA 19022
Step 2
Review your credit reports. Scrutinize the "potentially negative information" section for unpaid bills.
Step 3
Check your financial records to ascertain whether the negative information is wrong.
Protest Reports
Step 1
Make a copy of all your credit reports.
Step 2
Circle the mistake or mistakes on each copy as well as the name and address of the creditor or creditors providing the false information.
Step 3
Write to each credit bureau that reported a mistake. Attach a copy of the credit report to each letter. Identify the circled items in each letter. Describe why each circled item is fraudulent or incorrect. Be concise. Provide copies of documents that prove your case. Ask that the circled items be removed from each credit report.
Step 4
Make copies of your letters. Send the originals by certified mail. Ask for return receipts.
Contact Creditors
Step 1
Research the names and addresses of the businesses that provided the false information on your credit reports. The credit reports often list the names and addresses of the bill collectors and not the original creditor.
Step 2
Send each creditor that provided false information a copy of your letter to the pertinent credit bureau or bureaus. Send each creditor a copy of your credit report or reports with the false charges circled.
Step 3
Write letters to the creditors. In each letter, identify the circled item or items that pertain to the creditor that the letter is addressed to. Describe why the items or items mentioned in each letter is a fraudulent charge. Enclose copies of documents or previous communications that prove your case. Ask the creditors in writing to ask the credit bureau or bureaus to remove each fraudulent charge from your credit report.
Double-Check
Step 1
If an investigation concluded that the disputed charge was incorrect, ask the credit bureau in writing to send the corrected information to everyone who looked at your credit report in the past six months.
Step 2
If an investigation concluded that the disputed charge was correct, write another letter to each credit bureau. Ask the credit bureaus to insert these letters into your credit report. These letters should outline your case so prospective creditors can consider your perspective about the dispute. This is your legal right.
Step 3
If the credit bureau hasn't responded to your request to remove the disputed charge within 60 days, send it a follow-up letter that reminds it that investigations of disputes must be launched within 30 days.
Tips and Warnings
- Examine future credit reports to make sure that documented fraudulent charges don't reappear and your statements about disputed charges are there. Ask the credit bureaus to place a "fraud alert" in your reports so you aren't victimized by identity theft.
References
- Federal Trade Commission
- "The Consumer Reports Money Book"; 1997
- Equifax
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