Many people are unaware, but one has the right to dispute inaccurate information or omissions on his credit report. It requires credit bureaus to investigate your complaint (generally within 30 days), and then send you a response and correct any errors or omissions. The law also requires the source of inaccurate information to also correct the record at the credit bureaus to which it initially provided the erroneous information.
Firstly, you need to clearly identify each item in your credit report that you dispute, state the facts and then request a correction. Secondly, send your letter by certified mail and request a return receipt to document that your complaint arrived at the credit bureau. It is wise to keep copies of your dispute letter and enclosures for yourself in case there are any questions or disputes.
Staff at the FTC, the government agency responsible for ensuring credit bureaus’ compliance with federal laws, suggest the following: Immediately tell the credit bureau, in writing, about information you believe is incomplete or inaccurate. Include copies, NOT originals, of any documents that support your position. Also contact the company that provided the inaccurate or incomplete information to the credit bureau and request a correction of its records, too. If a credit bureau’s investigation does not resolve your concerns, the FCRA allows you to submit a brief statement about the matter, in 100 words or less, that must be attached to your credit report and provided to anyone that accesses your report in the future. This enables you to tell potential lenders or anyone else who sees your credit report your side of the story.
While there are many other credit bureaus around the country, there is little reason for consumers to review and correct these credit reports. “Those smaller credit bureaus typically get most or all of their information from the big three,” he says. “If you obtain copies of your credit reports from TransUnion, Equifax and Experian on a regular basis and to make sure they are accurate, it’s likely you’ll be solving problems at other credit bureaus, too.”