 Disputing
inaccurate data on credit report
|  Dear
Debt Adviser,
I just found out I have a negative listing on my account
that I know is not mine. I tried disputing it with the credit agencies but it
came back verified. The agency gave me the name of the collection agency to talk
with them directly about it. How do I write a letter regarding this?
-- Kami
Dear Kami,
You and a few million other people are dealing with the fallout
of inaccurate credit reporting every day. Billions of transactions
are reported to the three major credit reporting bureaus each month.
Numbers can get transposed, data can be corrupted and any number
of things can happen from the time you swipe your card until your
payment shows up on your credit report. To me, it's a minor miracle
that the system works as well as it does. It's the sheer size of
the system and the number of moving parts it has that makes correcting
inaccurate information a bit tricky. However, it can be done, and
I can help you do it.
The problem of accurate reporting of credit data is
so important to our financial system that Congress updated the laws
on this matter, the Fair Credit Reporting Act, or FCRA, in 2003
with the Fair and Accurate Credit Transactions Act, or the FACT
Act. In my own small way I did my part as well when I wrote the
book "Credit Repair Kit for Dummies."
This
is not personal. Although you may be upset, being cool throughout this process
will help you get through it. Inaccurate information happens; the bureaus know
it and everyone really does want accurate data on your credit report. Inaccurate
data serves no purpose in the credit reporting system. So here's what you need
to do: You must communicate with the collection agency and
I suggest you do it in writing and keep copies of all correspondence. You'll find
the address for the company and other needed information on the credit bureau
report. I recommend using a letter such as the one included on the next
page. Send the letter certified mail with return receipt
requested. Include a copy of the page from your credit report with the item on
it. Circle the item so that the person who gets the letter has an easy time identifying
the trade line. I'd like to tell you that this always resolves the problem, but
the truth is that sometimes it does, and sometimes it doesn't. If
the collection agency corrects the item you can ask the credit bureau for a free
copy of your credit report to be sure it's actually gone. If not, you have other
options depending on what response you get or if you don't get one at all. If
a company knowingly reports inaccurate information to the credit bureau it can
be sued under the Fair Credit Reporting Act. You can also complain to your state's
consumer protection agency. Before you take legal action, I'd recommend that you
try more than once to get the creditor to remove the inaccurate information by
escalating your complaint within their company.
Be calm and professional, have a glass of wine if
that helps. (I'm Italian so, for me, wine helps everything.) Call
them and ask for a manager. Explain you sent a letter, who signed
for it and ask for action. Keep notes of your call and move up the
chain of command if you must.
Know that it may take longer
than you would like to get this resolved. The biggest challenge you will face
is that both the credit bureau and the collector believe the information is correct
and it may take time and perseverance to convince them otherwise. Lastly,
I know this shouldn't have happened and it's not your fault. I suggest you chalk
it up to part of the price of living in the 21st century American financial system,
with all of its other pluses. Good luck!
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