A Quick Guide on Disputing Inaccurate Information on Your Credit File

As an attorney with years of experience, I understand the importance of maintaining accurate credit information. In this guide, I'll walk you through the steps to dispute any inaccuracies you may find on your credit file. It's crucial for your financial well-being to ensure that your credit report is as precise as possible. Let's get started!

**Step 1: Review Your Credit Report**

The first step in this process is obtaining a copy of your credit report. You're entitled to one free report annually from each of the three major consumer reporting agencies: Equifax, Experian, and TransUnion. Just so you know, for public records, obtain your report from LexisNexis.

**Step 2: Identify Inaccuracies**

With your credit report in hand, carefully go through it. Look for any discrepancies, such as incorrect account balances, late payments, or accounts that you don't recognize. Make a note of each item that needs correction.

**Step 3: Gather Supporting Documents**

Having supporting evidence is crucial in the dispute process. Gather any relevant documents that prove the information is inaccurate. This might include receipts, letters, or other paperwork that strengthens your case.

**Step 4: Contact the Consumer Reporting Agencies**

Contact the consumer reporting agencies that issued the report with inaccurate information. You can do this online, by mail, or over the phone. However, we recommend you send your disputes by mail, if possible. Clearly state the errors and provide them with the supporting documents you've gathered.

**Step 5: Dispute with the Creditor**

Simultaneously, contact the creditor associated with the inaccurate information. Explain the situation and provide them with the supporting documents you sent to the consumer reporting agencies.

**Step 6: Keep Records**

It's essential for you to document all communications. Note the date, time, and the names of the individuals you spoke with. This information can be invaluable if the dispute process takes longer than expected.

**Step 7: Be Patient and Persistent**

Resolving credit report inaccuracies can be a time-consuming process. Stay patient and, if necessary, follow up with both the consumer reporting agencies and the creditor.

Conclusion:

Remember, it's your right to have accurate credit information. Stay vigilant and keep track of your progress. If you're in a situation where you need more advice, please don't hesitate to consult a legal professional. If you have any questions, feel free to reach out. Thank you for reading!

Hyundai Hurting Credit Reports

On July 26th on the Consumer Financial Protection Bureau (CFPB) penalized Hyundai Capital America (Hyundai) for providing inaccurate information to nationwide credit reporting companies and did not take the proper measures to address or correct this information when it was identified between 2016 and 2020.

Hyundai Capital America serves approximately 1.7 million drivers of Hyundai, Kia and Genesis vehicles and has agreed to pay a $6 million civil fine and $13.2 million in restitution to current and former customers, making this the CFPB’s largest Fair Credit Reporting Act case against an auto servicer.

The CFPB found that Hyundai used manual and outdated systems, processes, and procedures to furnish credit reporting information. This resulted in Hyundai providing negative inaccurate information over 8.7 million times across 2.2 million accounts from January 2016 to March 2020, damaging customers’ credit reports and often resulting in lowered credit scores.

In a statement Hyundai Capital America stated that it launched an “end-to-end review” of it’s credit reporting, and was committed to giving customers “timely, accurate, high-quality service and care.” In the investigation the CFPB received many consumer complaints that Hyundai was inaccurately reporting their accounts. Hyundai identified many of the issues causing these inaccuracies in its internal audit books but it still took years to address the problems.

The CFPB concluded that between January 2016 and March 2020 Hyundai violated the Fair Credit Reporting Act (FCRA) and it’s implementing regulation, Regulation V, by:

• Failing to report complete and accurate loan and lease account information: Hyundai repeatedly did not take steps to promptly update and correct information it furnished to credit reporting companies that it determined was not complete or accurate, and continued to furnish this inaccurate and incomplete information.

• Failing to provide date of first delinquency information when required: FCRA requires data furnishers to provide credit reporting companies the date of delinquency for when a delinquent account is being charged off or placed for collections. Hyundai failed to report a date of delinquency for many consumers who were more than 90 days delinquent.

• Failing to modify or delete information when required: Hyundai’s furnishing system often overrode manual corrections made by employees in responding to consumer disputes. The furnishing system would provide monthly updates to credit reporting companies that reintroduced the data error after it had been disputed and corrected.

• Failing to have reasonable identity theft procedures: FCRA requires furnishers to respond to any notifications from credit reporting companies about furnished information that is the result of identity theft. Hyundai failed to establish reasonable identity theft and related blocking procedures to respond to identity theft notifications, and continued to report such information that should have been blocked on a consumer’s report.

• Failing to have reasonable accuracy and integrity policies and procedures: Regulation V requires furnishers to maintain written policies and procedures regarding the accuracy and integrity of the information furnished. Hyundai failed to review and update its credit reporting furnishing policies and procedures from 2010 to 2017. It was not until 2021 that the company finally updated some of its credit reporting policies and procedures.

Enforcement Action

The CFPB was created by the Consumer Financial Protection Act, and has the authority to take action against institutions violating consumer financial laws, including engaging in unfair, deceptive, or abusive acts or practices and violating FCRA, which protects consumers from the transmission of inaccurate information about them. Today’s order requires Hyundai to:

• Pay $13.2 million in compensation to current and former customers: As identified by the CFPB, consumers about whom Hyundai, after determining the information was inaccurate, furnished to credit reporting companies inaccurate information that the consumers were 30 or more days past due on an automobile retail installment contract or lease will receive compensation for the harm incurred.

• Pay a $6 million fine: Hyundai will pay a civil money penalty to the CFPB, which will be paid towards the victims relief fund. This fund provides compensation to consumers harmed by violations of federal consumer financial protection law.

• Take steps to correct all inaccurate account information: Hyundai will review all account files that it currently furnishes to credit reporting companies and correct all inaccuracies and errors described in the order and send updated information to the credit reporting companies. Hyundai will also examine its monthly furnishing data processes for the errors described in the order, take reasonable steps to identify such errors, and resolve identified errors before providing the data to any credit reporting company.

• Address procedures identifying and correcting inaccurate information: Hyundai will establish and implement written policies and procedures regarding the accuracy and integrity of the information relating to consumers that it furnishes to a credit reporting company. Hyundai must specifically include processes for identifying and promptly correcting systemic errors in Hyundai’s credit report furnishing system. Hyundai will also examine current policies and procedures and implement changes to the practices of its employees to ensure that its employees properly route, categorize, investigate, and respond to all direct and indirect credit reporting disputes.

What is an Inaccuracy in a Credit Report?

What is an Inaccuracy in a Credit Report? 

Many consumers misunderstand what an inaccuracy is considered on a credit report. 

Here are some examples of Inaccuracies you may find in a Credit Report: 

• Accounts that don’t belong to you

• Addresses that don’t belong to you

• Social security number that doesn’t belong to you

• A name that is not yours

• Current or previous employers you didn’t work for

• Old Records that should have been removed

Examples: 

• Bankruptcies can be reported for ten (10) years

• Civil suits, judgments, and records of arrest can be reported for seven (7) years

• Paid tax liens can be reported for seven (7) years from the date of payment

• Accounts placed in collections can be reported for seven (7) years

Here are some examples that consumers commonly confuse for inaccuracies:

• Accounts that belong to the consumer but claim they didn’t get the bill or didn’t get the chance to pay. 
  

• Being charged with a “Collateral Attack” *example* - an apartment complex charges a tenant  for various things written in the contract but tenant believes they do not owe the charges and refuses to pay - then charges show on credit report. 

• Filing for bankruptcy but still still having negative marks on credit accounts. 
  

• Having a loan extended but still having a late or non payment show up up. 

There are more examples that could effect your credit score. Don’t be afraid to reach out for questions. Many consumers are confused about how credit reports work. It’s a frustrating process.

T-Mobile Data Breach

T-Mobile - the cellar service provider - has confirmed that hackers stole sensitive personal data of more than 40 million former and prospective customers (those who gave the company personal information to run credit check) during a data breach on August 16th. An additional 7.8 million current T-mobile customer accounts were also hacked.  The stolen data included information such as Social Security numbers, driver’s license information, birth dates and more.  

The company stated that phone numbers and financial information, such as bank account numbers and credit card numbers were not included in the hack. 

Protecting Yourself After a Data Breach

Although T-Mobile claims payment information wasn’t obtained during the breach, it is in the best interest of customers to assume their information is out there.  When personal information falls into the hands of criminals, identity theft and fraud quickly become a major problem that is difficult to counter. Acting quickly can save you a lot of grief down the road. 

Steps To Take: 

Freeze your credit

Freezing your accounts is one of the most important steps you can take if you believe your data may be compromised. Freezing your credit blocks lenders from being able to review your credit report to approve a new line of credit. That means you won’t see any surprise credit cards or loans taken out in your name. 

To freeze your credit, you need to contact each of the major credit bureaus - Equifax, Experian, and TransUnion - directly. The bureaus will require information to verify your identity, such as SSN, a copy of your photo ID and proof of residence to approve the freeze. Some bureaus assign a PIN that is required to unfreeze your credit report. 

It will not cost you anything to freeze your credit report and doing so will not affect your credit score. A freeze can be temporarily or permanently lifted at any time. 

Check Your Credit Report

Even if you freeze your credit report, it is a good idea to request copies of your reports from each bureaus to check if any fraudulent activity has occurred. Due to the pandemic, all three bureaus are granting free access to credit reports weekly through April 2022 at www.annualcreditreport.com  This site works directly with the three bureaus to allow customers to pull their reports via a simple web portal. 

Your reports show a detailed history of your payments and balances for various credit products, including credit cards, mortgages, cars, personal and student loans. The reports will not show your credit score. 

When reviewing your reports, you may find fraudulent or inaccurate information. In that case, you want to work with the bureaus to dispute the information and have it removed. If you believe that you are a victim of fraud or identity theft, you may also want to report it to the Federal Trade Commission at identitytheft.gov 

Monitor Your Bank Accounts

T-Mobile states that credit and debit card information isn’t included in the data breach, but it is important to keep a close eye on your bank accounts for suspicious activity. If you see charges that you haven’t made, call your bank immediately to report the fraud. 

If you are still having trouble with disputing information and you are a victim or fraud or identity theft, let us know and we can help! 

You Can Repair Your Credit Without a Credit Repair Service

Credit repair companies can remove information on your credit report that is lowering your credit score but they cannot remove negative marks if the information is accurate, timely, and verifiable. Credit repair services can cost you around $100 a month, but everything the service does, you can also do on your own. 

Your credit score is calculated from information in your credit reports. A study from the Federal Trade Commission found that 5% of consumers had errors on their credit reports that could significantly lower their scores. 

Legitimate credit repair services check your reports for information that shouldn’t be there and dispute it on your behalf. They may also check to make sure the information does not reappear. Sometimes information that is accurate but cannot be substantiated is removed, but it could be reinstated if it is verified later. 

Errors that can be addressed: 

• Accounts that do not belong to you.
  

• Bankruptcy or other legal actions that were not yours.
  

• Misspellings, which may mix in negative entries that belong to someone with a similar name — or may mean positive entries aren't showing up when they should.
  

• Negative marks that are too old to be included.
  

• Debts that can't be validated and verified.

Using a credit repair service can cost between $79-$129, and the process could take several months to a year. You may also be required to setup a fee to begin. Credit repair services argue that you will save money because of lowered interest rates. It is true that lower interest rates go to borrowers with higher scores but it is also true that you can handle credit repair yourself. 

You can opt to fix your credit report on your own. Here is how: 

• Obtain your credit report: As of now you can retrieve your credit reports for free once a week at www.annualcreditreport.com until April 2022. Check all of your information and verify that it is accurate.

• Dispute errors: As a consumer, you can dispute errors directly with the three major credit bureaus. All three bureaus have an online dispute process, but it is more efficient to send in a complaint by certified mail. This provides proof of service and a real person will have to look at your information.

• Work on your payment history: The biggest factor affecting your credit score is your record of paying bills on time. If you have late or missed payments, that can drag your score down. It is important to bring your late accounts to current as soon as possible and consider writing a goodwill letter asking your creditor to remove the make from your credit reports.

• Use less of your available credit: How much of your available credit card limit you are using is known as your credit utilization ratio. The lower, the better for your score. If you can afford to do so, consider making multiple small payments in the billing cycle to help keep this ratio down.
  

Before deciding to use a credit repair service, know that you can do all of this on your own. It is as simple as looking through your reports and verifying the information without the cost. If you have inaccurate information on your credit report, you may be entitled to a settlement. 

If you find inaccurate information, be sure to dispute the information. If you need help, reach out to us for help in the process. We may also be able to obtain a settlement for you. 

Covid and Credit Score

Covid-19 has been such a unprecedented event and there is still a lot of work being done to configure how different situations should be treated and reported. 

The Fair Credit Reporting Act (FCRA) is a law enacted in 1970 that gives consumers certain rights when it comes to their credit reports that include the ability for consumers to dispute credit reporting errors. It also requires that furnishers (those that produce credit reports) are reporting accurate and up-to-date information. 

Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) in March 2020. Part of this act ensures that consumers impacted by Covid-19 are still able to receive loan accommodations without having their credit score impacted. This means that when banks and other lenders provide a loan, payment deferrals, and other forms of relief to consumers due to the pandemic, it should not impact their credit score.

Many Americans have been heavily impacted by Covid-19 and have received these types of relief from banks and lenders. While these should not impact credit scores, there are different credit reporting agencies and different credit scoring models. The current challenge is to make sure that loan payment deferrals are being treated consistently. As a consumer, you have the right to view your credit score. Currently, you are able to obtain a free credit report weekly as opposed to yearly. It is important that you check your credit report and score regularly and to make sure to contact the credit reporting agencies if you notice any inaccuracies in your report, especially now if you have received a loan during the pandemic. 

If you feel that your credit report has inaccuracies contact us to take a look and to see if you have a claim. Consultation is free and you may be entitled to a settlement! 

How to Dispute a Credit Report

How to Dispute Credit Report

Obtaining your credit report is the first step in disputing any inaccurate or wrong information which may appear on it. Federal law requires the three national credit reporting companies, Equifax, Experian, and Trans Union, to provide you with a free credit report every year. Get your free credit report at AnnualCreditReport.com; which is the official site to help consumers obtain their free credit report. Inaccuracies on your credit report may negatively affect you. If you find wrong information on your credit report start here:

Contact the credit reporting company in question. The disputing procedure can be initiated online.

• To dispute a credit report from Experian,click here.
• To dispute a credit report from Trans Union, click here.
• To dispute a credit report from Equifax, click here.

Credit reporting companies must investigate disputes made by consumers. Thirty (30) days after the dispute is initiated, credit reporting companies are required to provide consumers with the results. The results should be accompanied by a free credit report. If the disputed information has not been corrected following the credit reporting companies dispute procedures, consider seeking legal action.