Tag Archives: Inaccurate credit reports

What procedures should credit furnishers use to determine if credit report information is accurate?

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Data furnishers must conduct a reasonable investigation of a consumer credit dispute after receiving the dispute from the credit reporting agency.  Regulation V details guidelines for furnisher compliance with the FCRA by requiring written procedures for dispute investigations so that the information that the data furnisher provides for a consumer credit report is accurate and has data integrity.  Furnishers typically receive notice of the dispute electronically on an Automated Consumer Data Verification Form (ACDV).  The credit reporting agency sending the ACDV to the data furnisher should properly identify the dispute and attach the consumer’s supporting documentation provided by the consumer.  Court’s interpreting the FCRA have held that a furnisher must conduct a reasonable investigation of the consumer’s dispute by reviewing all relevant information in the form of a detailed and systematic inquiry of the information in the furnishers records.

In order to conduct a reasonable reinvestigation, the data furnisher must establish and follow reasonable procedures.  See Regulation V of the Fair Credit Reporting Act at 12 C.F.R. §1022.42.  Under Regulation V, a data furnisher must establish and implement reasonable written policies and procedures regarding the accuracy and integrity of the information relating to consumers that it furnishes information to a consumer reporting agency.  12 C.F.R, §1022.42(a).  In addition, the furnisher must periodically review and update its procedures as necessary to assure the ability to provide accurate credit information.  12 C.F.R.  §1022.42(c).  Appendix E to Regulation V provides a roadmap of the means to establish and implement specific procedures that result in proper credit report dispute investigations.

The specific procedures identified in Appendix E are an outline for the data furnisher to provide data information with the accuracy and integrity required by the Fair Credit Reporting Act.  Notably the furnisher should establish and implement appropriate internal controls through standard operating procedures including a verification of random samples of credit report information previously provided.  Furnishers should also provide adequate training to staff for compliance with the FCRA as well as provide effective oversight.  In addition, following any mergers or portfolio acquisitions, furnishers must prevent the re-aging of old information, duplicative reporting, or other errors that may affect credit report information accuracy.  Furnishers have specific duties and a grave responsibility to provide fair and accurate information regarding consumers. Only proper dispute investigation procedures in accordance with Appendix E will assure maximum possible accuracy as required by the FCRA.

Consumers believing that they have inaccurate information on their credit report should make a dispute with the credit reporting agency who reports the inaccurate information provided from a credit data furnisher in order to trigger the consumer’s rights under the FCRA.  The credit reporting agency also has a duty to conduct its own investigation including sending notice of the dispute and all relevant information to the data furnisher.  See 15 U.S.C. §1681i.  For information on how to write a good consumer dispute letter, please the previous post. 

How should my accounts credit report after filing bankruptcy?

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The type of bankruptcy filed, the status of the bankruptcy proceeding, and whether the debt has been discharged determines how credit reporting agencies report accounts after bankruptcy filing.

Furnishers of information credit report the bankruptcy status of an account to the credit reporting agencies as part of the consumer information indicator field in the Metro 2 data sent to the credit reporting agencies.  As for a Chapter 7 bankruptcy, for the month that the Chapter 7 bankruptcy is filed, the furnisher should report in the consumer information indicator field that a Petition for Chapter 7 bankruptcy has been filed.  For the time period between the filing of the Chapter 7 bankruptcy and the discharge, the furnisher should continue to report the same consumer information indicator to report that the account was included as part of the bankruptcy.  After the debt is discharged in the Chapter 7 bankruptcy, the furnisher should update the consumer information indicator field to indicate that the debt has been discharged which will assist the credit reporting agencies so that they do not report an inaccurate past due balance or derogatory status after a bankruptcy.

Equifax, Experian, and TransUnion have also agreed to implement procedures to make sure that debts discharged in bankruptcy do not continue to report derogatory balances or a past due status.  Experian notes that accounts included in bankruptcy will not be deleted from a credit report but that does not mean that a credit reporting agency can report inaccurate information with incorrect past due balances about an account that was discharged in bankruptcy.  While the filing of a bankruptcy is obviously an extremely negative event for a credit report, the purpose of the bankruptcy is to provide a new start so that a consumer can reestablish a credit profile.  Reporting inaccurate credit information about accounts included in bankruptcy can cause significant hardship to a consumer trying to reestablish their credit after bankruptcy.  If you need to obtain a copy of your credit report after bankruptcy to review how the credit reporting agencies note the accounts after bankruptcy, please see my previous post on how to obtain a copy of your credit file.  If you know that you have inaccurate information on your credit report after a bankruptcy discharge, you can dispute the inaccurate information with the credit reporting agency as described here.  If you need any additional information or have any questions, please contact my office at 703-390-9205 to discuss the inaccurate information on your credit report.

How do consumers have mixed credit files?

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If you are a mixed credit file victim in Herndon, Virginia, a credit report lawyer can help you sort out the mess of an inaccurate credit file or a mixed up credit file.

A mixed inaccurate credit file occurs when a credit account belonging to another individual becomes associated with your credit file. This can happen in any number of ways, for example:  incorrect spelling of names, transposition of social security numbers, similar names, two people with nearly identical social security numbers, or the mixing of generational differences like Jr. and Sr.

Our law firm in Reston, Virginia has conducted jury trials involving inaccurate credit reports containing mixed credit files.  From deposition and trial testimony, we have learned that the matching process for associating credit accounts does not require a nine for nine social security number match, does not require a date of birth match, and does not require a name match.  The computer systems simply associate data with other data that may be an appropriate match or may be the credit of a completely different person.  In identity theft cases, we have also seem the identity thief’s actual bad credit become associated with the victim’s good credit.

Consumers do not have a credit file like you would associate with a file in a traditional filing cabinet.  Credit reporting agencies simply maintain data in a cloud like environment.  When a credit reporting agency receives  data from someone requesting a consumers credit file, the credit reporting agency uses the provided information to match the data it maintains, with a credit reporting agency then providing a credit report containing information that best matches the associated data at that particular time.  When credit information contained in the agencies records is incomplete or inaccurate such that it becomes associated with the wrong person, the credit report provided will contain mixed and inaccurate information.  This can be a real problem in dealing with abusive debt collectors because they will collect on an account that is actually the debt of another person with a similar name.

Solving an inaccurate credit report or mixed credit file usually requires the services of an experienced credit report lawyer.  Having dealt with the problems on other occasions, we know how to best solve your particular problem.  If you would like to speak to me about your mixed credit file, I can be reached at 703-390-9205.  Our office also accepts inaccurate credit report cases for mixed credit file victims in Pittsburgh, Pennsylvania.

How do I get a free copy of my credit report?

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The fastest way to get a free copy of your credit report is to obtain the report through www.annualcreditreport.com.  You may also obtain a free copy of your credit report by calling 1-877-322-8228, or through the mail by  completing  the Annual Credit Report Request Form and mailing it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.  The Federal Trade Commission also has a short video on free credit reports that you can review as well.

The FCRA requires certain credit reporting agencies to provide you with one free copy of your credit report per year. The important thing to remember is the correct website to visit in order to obtain your free credit report. The website is:

www.annualcreditreport.com

When you visit the website, you will need to know basic details about your financial life in order to answer security questions. Initially, you will enter obvious items like your name, address, and social security number.  As you enter a specific credit reporting agency website, you will answer more difficult questions about your financial history to verify your identity.  Examples include prior street address names and numbers, monthly payment amounts for certain debts, and maybe even the names of prior roommates.

You do not need to purchase anything to obtain a free copy of your credit report.  You may be solicited for optional items like credit scores and credit monitoring, but you need not purchase anything in order to see your free credit report.

Because their are three main credit reporting agencies, I like to review one free report every four months by staggering the individual reports that I obtain for free.  A good reference point is near your birthday with scheduled reminders to get another free report four months later.  By viewing credit reports in this fashion, you are getting periodic snapshots to make sure that no new inaccuracies are on any credit report.

I would print off and maintain in your records the copies of the reports that you obtain.  This creates a baseline snapshot of your credit file if you are ever the victim of inaccurate credit reporting, identity theft, a mixed credit file, merged credit file, or multiple credit files.  Monitoring the contents of your credit file is important in protecting your future.  Do not delay, get a free copy of your credit report today.