Credit-Report Troubles

Q

When my wife and I recently attempted to refinance our house, we were surprised to find a number of problems listed on our credit report. It turned out that the credit-reporting company had made a bunch of errors. How can we clear up the smear on our record?

A

Once you become aware of a problem, your first step would be to contact each of the national credit reporting agencies and request a current report. There will be no fee if a person has taken action against you and you request the report within 60 days of being notified. Otherwise, expect to pay up to $8 per report.

The next step will be to dispute the error(s). Document your dispute in writing, and send it to the national credit reporting agency with the reporting error. The letter should include your complete name and address, clear identification and explanations of each item disputed, and a request to delete or correct the items in question. It would also be a good idea to copy the agency's credit report and highlight the disputed items. You should also send copies of records (not originals) that support your position. Send your dispute letter by certified mail, return receipt requested, so you have proof of delivery. Also, keep a copy of your letter for your own file.

Once the credit reporting agency receives your request, it is obliged to investigate the item (usually within 30 days) by presenting to their information source the evidence you submit. The source must review your information and report its findings to the agency. It also has responsibility for notifying other national credit reporting agencies of any incorrect information they previously supplied. If the results of the investigation show that errors were contained in your credit report, the agency must remove the incorrect information within a reasonable time.

Upon completion of the investigation, you are entitled to receive a report summarizing the results and a revised copy of your credit report if the investigation results in a change. Upon request, the agency is also obligated to notify anyone who has recently received your report to be notified of the corrections.

If the investigation shows that the report was accurate, the credit reporting agency has no obligation to remove the information from your file until it is outdated. Regular credit information can stay on your report for up to seven years, while bankruptcy information can be included for up to 10 years. Even if the problematic credit information is accurate, you do have a right to add a brief statement to your file, which the credit reporting agency must normally include in future reports.

For more information, I encourage you to review the Federal Fair Credit Reporting Act at www.ftc.gov.

God love you!

Phil Lenahan is director of finance for Catholic Answers in El Cajon, California.

Reach Family Matters at [email protected]