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Credit

Disputing credit report errors yourself

7 min read · General education, not legal advice

Printed forms, envelopes, a notebook and a pen spread out on a white wooden surface

Credit reports are built from information that many different businesses send to the credit bureaus, and mistakes happen. The Fair Credit Reporting Act (FCRA) gives consumers the right to dispute information they believe is inaccurate or incomplete, and it sets out what the credit bureaus and the businesses that supplied the information must do in response. Anyone can use that process on their own, at no cost. This article explains how it works: the two routes a dispute can take, what a dispute generally needs to identify, the timeline and the possible results. It is general education about the law, not legal advice.

Two routes: the bureau and the furnisher

A credit report entry has two sources of responsibility. The credit bureau (Equifax, Experian or TransUnion) keeps the file, and the business that supplied the information, called the furnisher, reported it. A furnisher might be a card issuer, a lender or a collection agency.

The Consumer Financial Protection Bureau (CFPB) says that fixing an error generally means contacting both the credit reporting company and the company that provided the information. The Federal Trade Commission (FTC) describes the same two routes. They run under different parts of the law:

  • A dispute sent to a bureau is handled under Section 611 of the FCRA (15 U.S.C. §1681i).
  • A dispute sent directly to a furnisher is handled under Section 623 (15 U.S.C. §1681s-2) and the CFPB's rule on direct disputes, 12 CFR §1022.43.

Because each bureau keeps its own file, an error that appears on more than one report is disputed with each bureau that shows it.

Finding the error first

A dispute starts with a careful read of the report. Free reports from each nationwide bureau are available through AnnualCreditReport.com. The article How to read your credit report walks through each section. Errors people look for include accounts they don't recognize, payments marked late that were made on time, wrong balances or credit limits, the same debt listed more than once with a balance, accounts shown as open that were closed, and personal details that belong to someone else.

Records matter as much as the report. Bank statements, payment confirmations, letters from the creditor and settlement or payoff letters are the kinds of documents that show what actually happened.

What a dispute generally needs to identify

The FTC and the CFPB describe the same core elements for a dispute sent to a bureau. Drawing on both, a dispute generally identifies:

  • The consumer's full name and address.
  • Each item being disputed, with the account number where there is one.
  • What is wrong with each item and why.
  • What the consumer is asking for: a correction or the deletion of the item.
  • Copies, not originals, of documents that support the dispute.
  • Optionally, a copy of the relevant part of the report with the disputed items marked.

For a direct dispute to a furnisher, the rule at 12 CFR §1022.43 says the notice must identify the account, specify the information being disputed and the basis for the dispute, and include supporting documentation the furnisher reasonably requires. The rule also says the dispute must go to the address the furnisher has designated, such as one listed on the consumer report or one the furnisher has clearly specified for direct disputes.

Specific disputes tend to be easier to investigate than general ones. Pointing to a particular month's payment and enclosing a bank statement that shows the payment clearing on time gives the bureau and the furnisher something concrete to check; a general statement that an account is wrong gives them much less.

How disputes are sent

The FTC notes that the bureaus accept disputes online, by mail and by phone. For mailed disputes, the FTC and CFPB both suggest certified mail with a return receipt, so there is proof of when the dispute arrived. The CFPB also suggests keeping copies of the dispute and everything sent with it. People often keep a simple log for each dispute: the bureau or furnisher, the date it was received, what was disputed and the dates 30 and 45 days later.

What the bureau must do

Section 611 sets out the bureau's duties once it receives a dispute:

  • Reinvestigate free of charge. The bureau must conduct a reasonable reinvestigation and record the current status of the item or delete it, generally within 30 days of receiving the dispute.
  • Up to 15 more days in one situation. If the consumer sends additional relevant information during the 30 days, the period can be extended by up to 15 days. The extension does not apply if, within the 30 days, the bureau has already found the information inaccurate or incomplete, or found that it cannot be verified.
  • Notify the furnisher. Within five business days of receiving the dispute, the bureau must notify the furnisher and pass along the relevant information the consumer provided.
  • Consider everything relevant. The bureau must review and consider all relevant information the consumer submits.
  • Correct or delete. If an item is found inaccurate or incomplete, or cannot be verified, the bureau must promptly delete it or modify it as appropriate, and tell the furnisher.

A bureau can decline to investigate a dispute it reasonably determines is frivolous or irrelevant, for example because it doesn't contain enough information to investigate. If it does, it must notify the consumer within five business days of making that determination, explain why and say what information it needs.

What the furnisher must do

Once a bureau notifies a furnisher of a dispute, Section 623(b) requires the furnisher to conduct an investigation, review the relevant information the bureau sent, and report the results to the bureau. If the information was incomplete or inaccurate, the furnisher must report that to every nationwide bureau it supplies, and modify, delete or permanently block the item as appropriate. It must finish within the same period the bureau has.

For a direct dispute, the furnisher must investigate, review the information the consumer provided and report the results to the consumer within the same 30-day period that applies to bureaus. If it finds the information inaccurate, it must promptly notify each bureau it reported to and provide corrections. Section 623(a)(3) adds that once a consumer disputes information directly with a furnisher, the furnisher may not report it to a bureau without noting that it is disputed. A furnisher can also decline a direct dispute it reasonably finds frivolous or irrelevant, with notice to the consumer within five business days of making that determination.

The results

A bureau must send written results within five business days of completing the reinvestigation. Under Section 611, the results include a statement that the reinvestigation is complete, a consumer report based on the file as revised, a notice that the consumer can request a description of how the reinvestigation was carried out, and a notice of the right to add a statement to the file. The FTC notes that if the dispute resulted in a change, the bureau must provide a free copy of the report.

If a deleted item is later put back, the law requires the furnisher to certify that it is complete and accurate, and the bureau must tell the consumer in writing within five business days of reinserting it.

If the result isn't what was expected

The law and the agencies describe several options, and people sometimes use more than one:

  • Ask how it was verified. A bureau must provide a description of its reinvestigation procedure within 15 days of a request.
  • Send new information. A new dispute with documents that weren't included the first time gives the bureau something new to consider.
  • Dispute directly with the furnisher, if that hasn't been done.
  • Add a statement. If a dispute isn't resolved, a consumer can file a brief statement of the dispute. The bureau may limit it to 100 words if it helps the consumer write a clear summary, and later reports that include the item must note that it is disputed.
  • Ask the bureau to notify recent recipients of a deletion or statement: anyone who received the report in the past two years for employment purposes, or the past six months for other purposes. The FTC notes a fee may apply for sending the statement.
  • Submit a complaint. The CFPB accepts complaints about credit reporting online or at (855) 411-2372 and says companies generally respond within 15 days.

Keeping it organized

Disputes involve dates, copies and follow-up across up to three bureaus and several furnishers. People manage that with folders, spreadsheets, a notebook or software. Whatever the method, the useful pieces are the same: what was disputed, where, when it was received, when a response is due and what came back.

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