One of every five American consumers has an error on his or her credit report and 5 percent of us endure errors so serious that we likely are being overcharged for credit card debts, auto loans, insurance policies and other financial obligations, according to a comprehensive study issued Monday by federal regulators.
The report by the Federal Trade Commission, completed in December but just released, found that 21 percent of a representative group of American consumers discovered a "confirmed material error" in at least one of the credit reports issued by the Big Three credit reporting bureaus -- Experian, Equifax and TransUnion. A "confirmed material error" involves information that, when corrected, changed the consumer's credit report.
Credit reporting lawyers at Max Hunter Story, P.A. help individuals who have suffered damages due to credit reporting issues. We can help you resolve these disputes.
The Fair Credit Reporting Act was enacted to protect the rights of consumers when dealing with credit reporting agencies.
Over half of Americans have significant errors on their credit reports. These credit report errors can stop you from getting the financing that you need for a home or automobile. If you have been the victim of a credit reporting error, we can help make sure your rights are protected.
We can handle credit reporting error cases, including claims involving:
- Inaccurate entries – These include errors associated with misreported information, such as a listing a judgment in your favor as a judgment against you, reporting a settled debt as unpaid, incorrectly including a debt as part of a bankruptcy proceeding, listing a debt paid on time as late, listing the wrong amount for an outstanding debt, or listing a creditor who you do not have.
- Mixed credit files – This occurs when your credit file is mixed with the file of a person with a similar name or Social Security number. This creates a false record which can negatively impact your credit score if the other person has damaging information on their credit report.
- Out-of-date entries – Most negative entries on your credit report must be removed after 7 years.
Here is a summary of your major rights under the FCRA. For more information, contact our office.
- You must be told if information in your file has been used against you. Anyone who uses a credit report or another type of consumer report to deny your application for credit, insurance, or employment – or to take another adverse action against you – must tell you, and must give you the name, address, and phone number of the agency that provided the information.
- You have the right to know what is in your file. You may request and obtain all the information about you in the files of a consumer reporting agency (your “file disclosure”). You will be required to provide proper identification, which may include your Social Security number. In many cases, the disclosure will be free. You are entitled to a free file disclosure if:
- a person has taken adverse action against you because of information in your credit report;
- you are the victim of identify theft and place a fraud alert in your file;
- your file contains inaccurate information as a result of fraud; C you are on public assistance;
- you are unemployed but expect to apply for employment within 60 days. In addition, by September 2005 all consumers will be entitled to one free disclosure every 12 months upon request from each nationwide credit bureau and from nationwide specialty consumer reporting agencies. See www.ftc.gov/credit for additional information.
- You have the right to ask for a credit score. Credit scores are numerical summaries of your credit-worthiness based on information from credit bureaus. You may request a credit score from consumer reporting agencies that create scores or distribute scores used in residential real property loans, but you will have to pay for it. In some mortgage transactions, you will receive credit score information for free from the mortgage lender.
- You have the right to dispute incomplete or inaccurate information. If you identify information in your file that is incomplete or inaccurate, and report it to the consumer reporting agency, the agency must investigate unless your dispute is frivolous. See www.ftc.gov/credit for an explanation of dispute procedures.
- Consumer reporting agencies must correct or delete inaccurate, incomplete, or unverifiable information. Inaccurate, incomplete or unverifiable information must be removed or corrected, usually within 30 days. However, a consumer reporting agency may continue to report information it has verified as accurate.
- Consumer reporting agencies may not report outdated negative information. In most cases, a consumer reporting agency may not report negative information that is more than seven years old, or bankruptcies that are more than 10 years old.
- Access to your file is limited. A consumer reporting agency may provide information about you only to people with a valid need -- usually to consider an application with a creditor, insurer, employer, landlord, or other business. The FCRA specifies those with a valid need for access.
- You must give your consent for reports to be provided to employers. A consumer reporting agency may not give out information about you to your employer, or a potential employer, without your written consent given to the employer. Written consent generally is not required in the trucking industry. For more information, go to www.ftc.gov/credit.
- You may limit “prescreened” offers of credit and insurance you get based on information in your credit report. Unsolicited “prescreened” offers for credit and insurance must include a toll-free phone number you can call if you choose to remove your name and address from the lists these offers are based on. You may opt-out with the nationwide credit bureaus at 1-888-5-OPTOUT (1-888-567-8688).
- You may seek damages from violators. If a consumer reporting agency, or, in some cases, a user of consumer reports or a furnisher of information to a consumer reporting agency violates the FCRA, you may be able to sue in state or federal court. C Identity theft victims and active duty military personnel have additional rights.
- For more information, contact our office for a free consultation.