How do I correct inaccurate information on my credit reports?

The Fair Credit Reporting Act (FCRA)
( http://www4.law.cornell.edu/uscode/15/1681.html ) establishes procedures for correcting mistakes on your credit record and requires that your record be made available only for certain legitimate business needs.

Under the FCRA, both the credit bureau and the organization that provided the information to the credit bureau (the "information provider"), such as a bank or credit card company, are responsible for correcting inaccurate or incomplete information in your report. To protect your rights under the law, contact both the credit bureau and the information provider.

First, call the credit bureau and follow up in writing. Tell them what information you believe is inaccurate. Include copies (NOT originals) of documents that support your position. In addition to providing your complete name and address, your letter should clearly identify each item in your report that you dispute, give the facts and explain why you dispute the information, and request deletion or correction. You may want to enclose a copy of your report with circles around the items in question. Your letter may look something like this sample
( http://www.consumer.gov/idtheft/images/letter2.gif ). Send your letter by certified mail, and request a return receipt so you can document what the credit bureau received and when. Keep copies of your dispute letter and enclosures.

Credit bureaus must investigate the items in question - within 30 or 45 days (depending on whether you provide additional information) - unless they consider your dispute frivolous. They also must forward all relevant data you provide about the dispute to the information provider. After the information provider receives notice of a dispute from the credit bureau, it must investigate, review all relevant information provided by the credit bureau and report the results to the credit bureau. If the information provider finds the disputed information to be inaccurate, it must notify any nationwide credit bureau that it reports to so that the credit bureaus can correct this information in your file. Note that:

Disputed information that cannot be verified must be deleted from your file.

If your report contains erroneous information, the credit bureau must correct it.

If an item is incomplete, the credit bureau must complete it. For example, if your file shows that you have been late making payments, but fails to show that you are no longer delinquent, the credit bureau must show that you're current.

If your file shows an account that belongs to someone else, the credit bureau must delete it. When the investigation is complete, the credit bureau must give you the written results and a free copy of your report if the dispute results in a change. If an item is changed or removed, the credit bureau cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness, and the credit bureau gives you a written notice that includes the name, address and phone number of the information provider.

If you request, the credit bureau must send notices of corrections to anyone who received your report in the past six months. Job applicants can have a corrected copy of their report sent to anyone who received a copy during the past two years for employment purposes. If an investigation does not resolve your dispute, ask the credit bureau to include your statement of the dispute in your file and in future reports.

Second, in addition to writing to the credit bureau, tell the creditor or other information provider in writing that you dispute an item. Again, include copies (NOT originals) of documents that support your position. Many information providers specify an address for disputes. If the information provider then reports the item to any credit bureau, it must include a notice of your dispute. In addition, if you are correct - that is, if the disputed information is not accurate - the information provider may not use it again.

For more information, consult How to Dispute Credit Report Errors
( http://www.ftc.gov/bcp/conline/pubs/credit/crdtdis.pdf )
and Fair Credit Reporting
( http://www.ftc.gov/bcp/conline/pubs/credit/fcra.htm ).

If you provide a copy of your police report, the credit bureaus will automatically block the inaccurate information from appearing on your credit reports sent to companies that request your report. This may take up to 30 days. The credit bureaus have the right to remove the block, if they believe it was wrongly placed. Except in a few states which have made it a law ( http://www.consumer.gov/idtheft/federallaws.html#creditinfo ), blocking the inaccurate information based on a police report is a voluntary initiative by the credit bureaus. It is not part of the FCRA, therefore it's still important to follow all the steps previously mentioned in order to obtain the full benefits due you under the law. Contact the credit bureaus to find out more about how this initiative works. If you're having trouble getting a police report, see What should I do if the local police will not take a report from me?
( http://www.consumer.gov/idtheft/recovering_idt.html#19 )