Your credit report plays a powerful role in your financial life. Lenders, insurers, landlords, and employers may all review it. When something on it is wrong, the effects can reach well beyond a single number.

 

Credit reporting errors are more common than many South Carolinians expect. A congressionally mandated study by the Federal Trade Commission found that one in five consumers had an error on at least one of their three major credit reports. Federal law gives you tools to fix them.

 

How Credit Report Errors Start

• Mixed files. A credit bureau may combine your information with someone else's, especially when names are similar. Suddenly, a stranger's late payments can show up on your report.
• Inaccurate account details. A paid-off debt may still show a balance, or an account may list late payments that never happened.
• Identity theft. Accounts, hard inquiries, or addresses you do not recognize can be early signs that someone is using your information.
• Bank account fraud. The Electronic Fund Transfer Act can limit your losses from unauthorized transfers, especially if you report them quickly. But an unpaid negative balance may still show up on a checking account report, such as one from ChexSystems. These specialty reports are separate from your credit reports, but errors on them can keep you from opening a new bank account.

Why These Errors Matter

 

Mistakes can cost you real money. The same FTC study found that about one in 20 consumers had an error likely to make borrowing more expensive, such as a higher mortgage interest rate.

 

Errors can also affect auto insurance costs. South Carolina allows insurers to use credit information when rating and underwriting personal auto policies, within limits set by the state Department of Insurance. An insurer generally cannot refuse, cancel, or non-renew coverage based solely on credit information it knows is inaccurate or incomplete.

 

How to Check Your Reports and File a Dispute

1. Get your free reports. Request free reports from Equifax, Experian, and TransUnion every week at AnnualCreditReport.com, then look over your personal details, accounts, and inquiries.
2. Dispute in writing. Contact each bureau reporting the error: Equifax, Experian, or TransUnion. Explain what is wrong and why, and include copies of supporting records, such as statements or payment confirmations. You can also dispute with the company that reported it. Keep copies of everything.
3. Know the timeline. The bureau generally has 30 days to investigate. Some disputes allow up to 45 days, such as when you send more information during that window. It then has five business days to share the results.

If identity theft is involved, file a report at IdentityTheft.gov. Then send the bureau your report, proof of identity, and a letter identifying the fraudulent items and stating they are not yours. The bureau generally must then block that information within four business days.

 

Our free dispute guide walks through each step.

 

When to Call a Consumer Protection Lawyer

 

A dispute does not always solve the problem. It may be time to call a lawyer if the error remains after your dispute, if information that is not yours keeps appearing, or if an error cost you credit, housing, or a job.

 

Depending on the facts, the Fair Credit Reporting Act may allow you to bring a claim against credit reporting agencies, or the companies reporting to them, that fail to properly investigate a dispute. Dave Maxfield has litigated credit reporting cases since 1998, and we never take cases against consumers.

 

If your credit report is still wrong after a proper dispute, we are here to help. Call Dave Maxfield, Attorney, LLC at (803) 509-6800 for a free case review.

 

This blog is for general informational purposes only and is not legal advice. Reading it does not create an attorney-client relationship. For advice about your specific situation, please contact an attorney.