Consumer Rights When Credit Bureaus Fail to Correct Errors

A mistake on your credit report can affect your ability to get a loan, rent an apartment, or even land a job. When you spot an error and report it, you have every reason to expect it to be corrected. But, when the credit bureau fails to fix it, you might feel like there is nothing you can do.  However, there are federal laws that give you several meaningful options.

Your Rights Under Federal Law

The Fair Credit Reporting Act, commonly known as the FCRA, is a federal law that governs how consumer reporting agencies, including the three major credit bureaus, Equifax, Experian, and TransUnion, collect, maintain, and report consumer information. Under the FCRA, you have the right to dispute information in your credit file that is inaccurate or incomplete. Once you submit a dispute, the credit bureau is required to investigate within 30 days and correct or delete any information it cannot verify as accurate.

What Happens After You Dispute an Error

Additionally, when you file a dispute, the credit bureau also forwards the dispute to the company that originally reported the information, known as the furnisher. The furnisher is also required to investigate the dispute and report back the results of that investigation to the credit bureau. If the investigation confirms the error, the bureau must update or remove the information. If the bureau concludes the information is accurate, it stays on your report, though you have the right to request that a statement of dispute be added to your file.

The problem is that this process does not always work as it should. Credit bureaus handle an enormous volume of disputes, and investigations are often only conducted through an automated system rather than meaningful human review. Errors that consumers have documented and disputed in detail sometimes come back verified with little explanation.

When the Bureau Gets It Wrong

If a credit bureau or furnisher fails to conduct a reasonable investigation or continues to report information it should have corrected, the FCRA provides a path to hold each wrongdoer accountable.  Specifically, consumers may have the right to pursue legal action against any credit bureau or furnisher that violates the Act. Depending on the nature of the violation, recoverable damages can include actual damages for financial harm suffered, and in cases of willful violations, the law also provides for statutory damages and punitive damages. Attorney fees may also be recoverable.

Common Types of Errors That Go Uncorrected

Credit report errors that consumers frequently struggle to get corrected include:

• Getting inaccurate information belonging to a third party removed when the credit report has been mixed with someone else;
• Having fraudulent accounts and/or fraudulently used accounts removed;
• Getting accounts that were paid or discharged in bankruptcy still showing as outstanding; and
• Having negative account information that is past the legal reporting period removed.

Steps to Take When Your Dispute Is Ignored

If you have disputed an error and the credit bureau and/or furnisher has failed to correct it, documenting your dispute history is important. Keep copies of every letter or submission you sent, along with the bureau’s responses. This record becomes valuable if the dispute needs to escalate. You can also submit a complaint to the Consumer Financial Protection Bureau or your state attorney general, and you can add a statement of dispute to your credit file.

Talk to Our Team at Hays Cauley, P.C.

When the dispute process has run its course without results, speaking with an attorney who handles credit reporting matters can help you understand what options are available to you.  At Hays Cauley, P.C., we help South Carolina consumers who are dealing with inaccurate information appearing on their credit reports. Call us at 843-665-1717 or contact us online to discuss your situation.