It might surprise many people to know that when a claim is disputed on a credit report, that the individual that is requesting a dispute investigation is all on their own as far as defending their position in dispute. There are federal laws about what a credit reporting companies may do, which is the Fair Credit Reporting Act, and there are some state laws that guide what an agency may do in their respective states. Know what is required when a dispute is taken on, so a good clean credit history will follow.

Everything that is in a credit report is the responsibility of the individual to make sure it is correct. It does not matter if it is a mistake on the part of the consumer-reporting agency, or the account holder’s fault. The way they look at it is that it is an individual’s responsibility to maintain all information on accounts, and correct it if it is wrong. Many are very surprised to find out that all credit reporting agencies (CRA) will sell their information to companies that want the information, but in the mean time have bought other statistical data many companies too. They resell the information back to them and a credit formula is born. That is one reason that a credit score will fluctuate from day to day.

In a dispute process the individual is allowed by law to get a free copy of a report if they are denied anything from credit to employment. However a lot of credit agencies do not tell them of that right. However, it must be done in 60 days, or the free report is denied. Also, just because you are on welfare or unemployed a free copy must be provided at least one time per year. Some states like Georgia require agencies to give them twice a year to anyone that requests it. If any individual believes that fraud is part of the problem, such as identify tampering, the report is supposed to be given free. The national reporting agencies of Experian, Equifax and Trans Union are required by law to give out to anyone that requests it a copy of a credit report one time per year too.

The Fair Credit Reporting Act the reporting consumer agency and the company that buys information from them, are to correct any discrepancies in a file, but the individual that is questioning the information in the reports must initiate the dispute process. Complaining to a credit reporting agency like Experian or a local state agency will not do any good. They are just the messenger of the information collect from companies that buy information from other sources, such as banks or other lending institutions. Screaming at them to correct it will not change a thing. Again, the individual must make a formal complaint with the information provider.

Another thing that the big three do not say is that names, phone numbers and complete address must be given when disputing information. Also, requests can be made to a consumer reporting company that if anyone if a dispute is changed or deleted from the credit information then any business or individual that has denied services must be informed of the favorable results. If a denial of employment is in the last two years, then they must be given notice, if based on credit worthiness. Also, if a dispute on any claim that is not resolved, which includes charge-offs or settlements, then a request can be made to include a statement about the evidence. All requests from any outside source should be able to see the valid evidence and information. This will help others determine the unique situation, and hopefully it will not affect any services or employment for the future.

Cleaning up credit is an easy process once the rules are clear about what responsibilities are of the individual, and what the major national credit reporting agencies roles are, and the information that they sell to consumer reporting groups are. There are a lot more loop holes and benefits that can be gained to get credit clean, and if the process is looked at as one as a yearly routine, and a long term benefit for credit health, then it is a routine worth knowing about.

Related posts:

1. A Few Important Steps That Can Help You Dispute Credit Report Errors
2. Your Options for Consolidating Debt and Fixing that Credit Report
3. Diligence is Key When Filing a Dispute with the Credit Bureaus
4. Mistakes Happen: Why Checking your Credit Report Often is Important
5. Make Your Credit Report Request Online for an Immediate Credit Report

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