Credit report errors are far more common than most people realize. Studies consistently show that a significant percentage of consumer credit reports contain at least one material inaccuracy. And the consequences are not trivial — a single error can cost you a job, an apartment, a loan, or insurance coverage.
The good news is that federal law gives you concrete rights when this happens. Here is what those rights are and what to do when a credit bureau or creditor gets it wrong.
What Kinds of Errors Appear on Credit Reports?
Credit report errors take many forms. Some of the most common include accounts that do not belong to you, paid debts that continue to show as delinquent or in collections, incorrect balances or credit limits, accounts discharged in bankruptcy still showing as active, outdated negative information that should have been removed, and records that belong to someone with a similar name mistakenly attached to your file.
The Credit Bureau’s Legal Obligation
Credit bureaus and the companies that report information to them — called data furnishers — are legally required to maintain accurate records. When you dispute an error in writing, the bureau must investigate within 30 days. If it cannot verify the information, it must correct or delete it.
The right to dispute is only as powerful as the paper trail behind it. A written dispute sent and documented is enforceable. An oral complaint over the phone is not.
How to Dispute a Credit Report Error
The most important step is to submit your dispute in writing. You can send a dispute letter directly to the credit bureau — Equifax, Experian, or TransUnion — or to the creditor or debt collector that reported the inaccurate information. Send by certified mail and keep a copy of everything. In your dispute, clearly identify the error, explain why it is incorrect, and include any supporting documentation.
What If the Bureau Does Not Fix It?
If the error remains on your report after the investigation period, you may have a legal claim under the Fair Credit Reporting Act. That claim can entitle you to actual damages for the harm caused, statutory damages, and attorney fees paid by the defendant. In cases involving intentional or reckless conduct, additional punitive damages may be available.
If you have already sent a written dispute and the error remains, you are in a strong legal position. That dispute letter is often the most important piece of evidence in an FCRA case.
Background Check Errors Are Also Covered
The FCRA also applies to background check companies that provide reports for employment, housing, or insurance purposes. If a background check contained incorrect criminal history, an expunged record, or someone else’s information mixed with yours, you may have a separate and independent claim.
