Credit Error

A U.S. Public Interest Research Group study revealed that approximately one third of all consumer credit bureau reports contain significant errors. It is for exactly this reason that financial planners strongly recommend that all consumers maintain familiarity with current and complete credit reports.

Credit errors can be very destructive to both the credit standing and real life opportunities of the individual consumer. Aside from matters that are directly related to seeking credit, credit reports are being used with greater frequency almost as character references by landlords and employers, as often they use financial responsibility to predict personal character.

If, upon reviewing a credit report, a consumer finds an error, a credit dispute arises. The consumer, in accordance to consumer protection laws relating to credit, must then contact the credit reporting agency in writing describing the error and provide supporting documentation for the consumer’s claim. The credit reporting agency is obligated to investigate the claim, usually within 30 days of receiving the letter.