How to Fight the Credit Bureaus
Consumers gain an ally against credit bureau bullies
Fighting with the credit bureaus when there’s a mistake on your credit report requires persistence.
To put it simply: They don’t fight fair.
But, consumers have an ally in the Consumer Financial Protection Bureau (CFPB).
The CFPB is taking Experian to court because the credit reporting giant conducted fake investigations and failed to correct errors on credit reports. These mistakes impacted access to credit, housing, and employment.
“When consumers disputed errors on their credit reports, Experian conducted sham investigations rather than properly reviewing the disputes as required by federal law,” said CFPB Director Rohit Chopra. “Credit reporting errors can have serious consequences for a family’s finances, and it is critical that credit reporting giants follow the law.”
The CFPB suit seeks redress for consumers who were harmed by Experian’s actions and a civil money penalty to punish Experian.
The three major credit bureaus - Experian, Equifax, and TransUnion - are no strangers to skirting the law.
One of the top consumer complaints year in and year out is errors on credit reports. Dealing with the bureaus can be a nightmare - and even if they tell a customer they’ve resolved a dispute, the error may be reinserted on the report.
Even worse, the bureaus may try to sell unnecessary credit monitoring services - that make big money for them and do nothing for consumers.
While you have an ally in the CFPB if you’re fighting a credit bureau, there are some steps you can take to get started.
“You should always be checking your credit report,” said Chi Chi Wu, staff attorney at the National Consumer Law Center.
The reports are available (for free) through AnnualCreditReport.com.
If you notice an error, send a certified letter to the credit bureau (send one letter to each bureau reporting the error). The letter should notify them you dispute the negative entry and contain any documentation you have that the debt has been satisfied.
You can tell them how to communicate with you - and it is best to get all communication from them in writing.
Additionally, you should ask for any and all documentation establishing that the error has been corrected.
In the case of Experian, the company told consumers errors were corrected but then simply accepted any explanation from a creditor - often leaving erroneous entries on a consumer’s credit report.
If the credit bureau is nonresponsive or fails to provide documentation of a correction - or, if an erroneous negative entry stays on your report after you’ve disputed it (with documentation), you can file a complaint with the CFPB.
You can fight the credit bureaus - and, you do have an ally in your corner in the form of the CFPB.
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