Handling Credit Card Report Errors

Consumers Advised to Check for Extra Charges

By Stephen Mazeika

Did you know that over 13 million errors occur each year on consumers’ credit reports? It’s true. There are many different ways in which these mistakes affect people on a regular basis that often go beyond just the inconvenience of correction. From erroneous late payments to mistaking one person’s debt for another, and even the surprising reception of a bill that was dated before a person was born, these mistakes can be messy to clean up.

Lack of Existing Regulations

Although the Fair and Accurate Credit Transactions Act of 2003 was passed in order to establish new requirements to resolve problems with the error process, there are still holes in the legislation that need to be fixed. Since federal agencies haven’t finished writing new laws to support the act, the process of making the correction process more efficient has been stalled.

Ways to Help Handle Errors When they Surface

• Be proactive in looking for errors

Check your credit reports regularly, especially before signing up for any utilities, contracts, or leases they may require credit checks. If the institutions in the contract have the wrong credit information based on the mistakes, they may think that you have a lower credit score. Consumers have a right to a free credit report from each of the national bureaus Equifax, Experian and TransUnion.

• Disputing errors is possible

However, with the absence of federal regulation laws, credit companies determine the difference between inaccurate charges and substantiated ones. This creates a bias in evaluation of the errors which has left many customers feeling taken advantage of by the institutions.

• File bill complaints with credit bureaus and creditors

Credit bureaus are not required by law to report corrections within each other. Advisors recommend sending a written letter to the company with a return-receipt request so there will be proof that the company received it.

• Check for repeated errors

13% of corrected disputes reoccur after a supposed mistake was taken care of. Consumers should double check their statements to make sure the same errors don’t happen again and save themselves the extra fees and hassle.

• Damage Control

Consumers need to know that they are allowed to write up to 100 word statements submitted with their credit card reports. Credit card companies are also required to send corrected copies to any insurers, landlords, or any other lenders that have determined your fees based on the previous inaccurate credit reports.

In addition to this, errors from other sources (such as identity theft) carry clauses that allow customers to block certain information from infiltrated accounts. This ensures customer privacy is honored that helps those victims avoid added insult to injury.