Credit Report Problems

Update: Credit Industry Reform

Update: Credit Industry Reform

An update on the National Consumer Assistance Plan

On March 8, 2015, Equifax, Experian and TransUnion (CRAs) entered into a settlement agreement with the NY Attorney General along with 31 additional AGs from other states. Upon entering the agreement, the CRAs announced that they would address a number of credit reporting industry problems, including their dispute process and how they handle unpaid medical debt. This agreement is referred to as the National Consumer Assistance Plan.

The credit reporting industry overhaul is taking place nationally over the course of three plus years with 2018 as the deadline to have all changes made. The overhaul will be implemented in three phases (detailed below) to allow the CRAs to update their IT systems and procedures with data furnishers.

To date, changes to websites and other technical tasks have been acomplished. A change to be implemented this September will address the dispute process. The CRAs will be using trained and empowered employees to review the documentation accompanying disputes. And, if a furnisher says its information is correct, the credit reporting agencies must still look into it and resolve the dispute.

In addition, the credit reporting overhaul will require CRAs to wait 180 days before adding any medical debt

Former Business Owner Brings Lawsuit Against First Data Global Leasing for Inaccurate Credit Reporting

Cento Lane has filed a lawsuit on behalf of a former business owner who used First Data Global Leasing merchant services. The lawsuit alleges violations of the Fair Credit Reporting Act against First Data. The lawsuit alleges that even though the former business owner never signed a personal guaranty for First Data's services, First Data reported the account to Trans Union, Equifax and Experian

Stop Errors in Credit Use and Reporting (SECURE) Act Introduced by Sherrod Brown

Senator Sherrod Brown of Ohio, has introduced the Stop Errors in Credit Use and Reporting (SECURE) Act to ensure that all have accurate information on their credit report to ensure they are being treated fairly.

According to the article published by Senator Brown, "[t]he SECURE Act would require credit reporting agencies to improve their processes for collecting

Highlights From FTC Recent Study On Credit Report Inaccuracy

The Federal Trade Commission (the “FTC”) recently released its fifth interim report on a national study of credit report accuracy. This was the first national study to include participation from consumers, lenders/data furnishers, FICO and the national consumer reporting agencies (the “CRAs”). The FTC found that:

  • “26% of the 1,001 participants in the study identified at least one potentially material error on at least one of their three credit reports.”
  • Only 21% of participants had

Does Your Credit Report Have Errors?

What should you do if you learn that your credit report has errors? You can either contact us about how to proceed or send a dispute to the consumer reporting agency (CRA) on your own. There are several ways to initiate the dispute process with the CRAs, including using the dispute form which you may have received when you ordered your credit report; using the CRAs online dispute form; sending a dispute letter by mail (certified mail is recommended but not required); or by telephone. Whichever method you choose, you should remember to keep an accurate record of your dispute, including a copy of your dispute form or letter. If you use the online dispute form, you should take a screen shot of your dispute before sending it.