Consumer Credit File Rights Under State and Federal Law
Your Right to Dispute Inaccurate Information
You have the right to challenge incorrect details in your credit report. To do this, contact the credit bureau directly. However, neither you nor any credit repair company can remove accurate, current, and verifiable information from the report. Only outdated negative information—over seven years old—must be removed. Bankruptcy information, though, can stay on your report for up to 10 years.
Getting Access to Your Credit Report
You can request a copy of your credit report from any credit bureau. A small fee may apply. However, this report must be provided free of charge if you were:
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Denied credit, employment, insurance, or housing within the last 60 days due to the report
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Unemployed and plan to apply for a job within 60 days
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Receiving public welfare benefits
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A victim of fraud and suspect errors in your report
A representative from the credit bureau must also be available to help you understand the report’s content.
Your Rights Against Credit Repair Organizations
The Credit Repair Organization Act protects consumers from dishonest practices. If a credit repair company violates this law, you have the right to sue them. In addition, you have the right to cancel your contract with a credit repair company for any reason. This cancellation must happen within three business days from the date you signed the agreement.
Ensuring the Accuracy of Your Credit File
Credit bureaus must follow reasonable procedures to ensure all reported information is accurate. But mistakes can happen. If you notice an error, you can write directly to the credit bureau to file a dispute.
Here’s what you need to do:
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Write a letter explaining the inaccurate information.
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Provide copies of any documents that support your case.
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Send the letter to the credit bureau.
Once your dispute is received, the credit bureau must investigate and update or remove the incorrect data. They cannot charge a fee for this process.
If the Dispute Is Not Resolved
Sometimes, reinvestigations do not resolve the issue to your satisfaction. In such cases, you may submit a brief statement explaining why you believe the report is wrong. The credit bureau must then include your statement or a summary of it in all future reports about you.
Who Regulates Credit Reporting?
The Federal Trade Commission (FTC) regulates both credit bureaus and credit repair organizations. If you need more information, contact:
Public Reference Branch
Federal Trade Commission
Washington, D.C.