Your credit report is extremely important to you and can impact you financially. You should protect your credit as if it were real gold. The impact of a negative report can be very costly! Despise what you may hear on commercials, there is no way to remove negative items on your report if they are reported accurately. However, the current system is far from perfect and many times individuals find that a negative item is reported on their report that is inaccurate. If you think about the volume of transactions that are reported into the system each and every day, it is easy to see how mistakes can be made. Every time you use your credit of debit card to pay for a purchase, that information is sent to the recording bureaus. Literally billions of credit transactions are sent to the reporting agencies each and every month. The credit bureaus know the mistakes can happen and inaccuracies can appear on an individual's credit report. No one wants the credit reports to be inaccurate, not the individual nor the credit bureau. So, if you find a mistake on your credit report, try to keep this in mind when trying to correct the error.
Congress updated the Fair Credit Reporting Act in 2003 to include the Fair Credit Transaction Act. This is to protect you if transactions are reported inaccurately. Numbers can be transposed or data files can even be corrupted when reporting information to the bureau. The FCTA will protect you and make sure you credit report is corrected and reflected accurate information. So, what should you do if you find a mistake on your report?
First, start communicating with the collection agency in writing. Verbal communication is great, but when it comes to correcting your credit report you want a written trail of your attempts to correct the problem. Put it in writing! And put it in writing nicely! The address for the collection agency should be provided for you on your credit report. You should write a letter to the collection agency and state the the item they are reporting is inaccurate and ask them to remove it from your report. It also helps to attach a copy of your credit report with their inaccurate item highlighted and attached to your written request. Ask the agency to send you a corrected copy of your credit report after they have removed the inaccurate item.
Second, make sure that your written communication is sent via certified mail with a return receipt requested. You not only want to have a copy of your written communication, but you want to have PROOF that it was delivered and received by the collection agency.
Third, if the agency fails to remove the item, try writing them a second time. State in your letter that this is your second request and attach copies of your first letter, inaccurate report, and return receipts showing the information was received. You can state in your letter that according to the FCRA it is illegal to report inaccurate information on an individual's credit report and request the item be removed immediately!
Fourth, if the company still refuses to remove the item you should contact the State of TN consumer protection agency and notify them of the problem.
Fifth, at this point if the item has still not been removed I would attempt verbal communication, but only with a manager. Call the company and insist on speaking with a manager. Inform the manager that you have written two letters and have signed return receipts showing proof of delivery. Make a written note in your records regarding the phone call and any comments that were made. You made to need to keep moving higher up the management chain with your phone call! If so, try to remain pleasant and professional but insist the item be removed.
Lastly, if all else fails and the company refuses to remove the incorrect item, you should seek the advise of an attorney and consider taking legal action. If the company cannot prove that the item they have reported on your credit report is accurate, they will be liable for reporting inaccurate information.
Most agencies are more than willing to correct inaccuracies that they may be reported in error. But, you must be patient and diligent in getting this corrected. Don't give up because having an accurate credit report it critically important to you! Your credit score will determine the interest rate you will qualify for when obtaining a home mortgage, it can increase your annual premium for homeowners and car insurance, and also determine if you will qualify credit cards or equity lines. Take the time to check your credit report at least once a year and make sure it does not reflect in accuracies!
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