The Law Office of
Heather A. Harwell, PLLC
Serving Wesley Chapel, New Tampa, Zephyrhills, Dade City, Land O' Lakes & Lutz
Free Telephone or Video Consult
Fair Credit Reporting Act (FCRA)
The Fair Credit Reporting Act (FCRA) requires that all information reported to a credit reporting agency be complete and accurate. Once a consumer notifies a reporting person or creditor that information reported is inaccurate and the information is actually inaccurate, the reporting person and credit agency must promptly correct the inaccurate reporting. There must be "reasonable cause [on the part of the reporting person or creditor that the information is inaccurate." (15 U.S.C. sec. 1681s-2; 1681o). Pursuant to the FCRA, you may obtain a free copy of your credit report from Equifax, Experian and Transunion every 12 months. You may do so online at AnnualCreditReport.com or call 1--877-322-8228.
If a consumer notifies a reporting agency that the consumer disputes the accuracy or completeness of information on the consumer's credit report and the information is actually inaccurate, the credit reporting agency must conduct a reasonable investigation to determine if the reported information is incomplete or inaccurate. This includes personal information such as reported addresses and employers. Reporting agencies are not obligated to investigate obviously frivolous disputes. If the reporting agency determines a dispute to be frivolous or irrelevant, the reporting agency must notify the consumer of same within 5 business days.
​
Credit reporting agencies have standard designations for accounts and these may not be challenged unless the designation is not correct. For example, if you settled a debt without paying in full, the designation will not be "satisfied", it will be "settled". However, there are several reasons to challenge items on your credit report including the following:
​​
Inaccurate Account Reporting. Whether payments are erroneously listed as late, the status of your account is listed incorrectly, or a creditor lists the wrong date an account was opened, such reporting may significantly effect your credit score.
​
Inaccurate Credit Limits or Balances Owed. If a creditor misreports your credit limit or the amount of credit used, the misinformation could significantly lower your overall credit score.
​
Duplicate Accounts. If the account appears more than once on your credit report, this could negatively impact your overall credit score because they would reflect a higher than actual credit usage.
​
Accounts That Do Not Belong to You. If an account appears on your credit report that you never initiated, you are entitled to have that account promptly removed from your credit report. This occurs more often than you would imagine, especially if you have a commonly used name or social security number similar to someone else.
​
Outdated Information. Negative items may only stay on your credit report for designated periods of time. (See How Long on My Report by clicking here.) If the time has passed and the item is still on your credit report, you are entitled to have it removed. Likewise, if the status of the account has changed, you have the right to a prompt correction of the misreporting.
​
Incorrect Personal Information. You are entitled to correction of any inaccurate personal information including names used, birthdates, social security numbers, employment and addresses used.
Once you notify the reporting agency of a dispute, the reporting agency must notify the person or creditor who reported the information of the dispute within 5 business days. The reporting agency must immediately provide notice of the reporting person or creditor's response details within 30 days. If the information is incomplete, the reporting must be updated to include the missing information. If the information is inaccurate, the reporting agency must delete the item from the credit report within 30 days. The time may be extended up to 15 more days if the reporting agency receives additional information pertaining to its investigation. No extension is allowed if the reporting agency is unable to veriffy the inaccuracy or incompleteness of the reported information. ​
The FCRA provides that any reporting agency or reporting creditor wilfully failing to comply the FCRA may be liable for actual damages up to $1,000, punitive damages, and reasonable attorneys' fees and costs. If the reporting agency or reporting creditor negligently failed to comply with the FCRA, they may be liable to the consumer for actual damages resulting from the failure plus attorney's fees. However, a "bad faith" or unsupported lawsuit could result in a judgment of attorney's fees against the consumer. Lawsuits alleging violation of the FCRA must be filed within 2 years of discovery of the violation.​
When you dispute an item on your credit report, it is best to provide supporting documentation and copy the dispute to the reporting creditor involved. Always make copies of any letters you send or online disputes that you make as well as a copy of the stamped and addressed envelope to prove that you properly addressed the dispute and mailed to the correct address. It is also important to send all letters by certified mail. Save all letters you receive regarding the account and its reporting in case the matter is not resolved satisfactorily for you and you are required to contact an attorney to help.
The information provided in this website and blog page is intended for informational purposes and should not be construed as legal advice. You should never rely solely on websites for legal information or advice and contact a licensed attorney with any questions you may have.