Debt Consolidation: How to Dispute Credit Report Errors

After a Debt Consolidation: What do You do about any Inaccurate Entries?

When you consolidate your debt, you usually are working towards cleaning up your credit so you can obtain a loan at a reasonable interest rate. But, suppose, after you consolidate your credit cards, you find some items that are erroneous or inaccurately listed on your credit history? How do you challenge or dispute these entries? According to the Fair Credit Reporting Act, you have the right to dispute entries that are incorrect, obsolete, or false. By disputing a specific entry, you are countering the accuracy of the entry, not making any claims, one way or the other, about your liability for the obligation.

Getting Rid of Obsolete Items and Erroneous Entries on your Credit Report

Besides erroneous or inaccurate items, obsolete items in the form of negative items, such as foreclosures, and judgments, which are still on your report after seven years should be removed. Bankruptcies should be erased after 10 years’ time. Because credit bureaus only report these items, they are under no obligation to demonstrate their accuracy unless a particular item or items are disputed or challenged. However, once you dispute an inaccurate entry, the credit bureau must then either remove an obsolete entry or contact the creditor about a disputed item for verification.

The Verification Process

As a result, it’s important to regularly scan your credit history as anyone can put incorrect information on your report without your knowledge or consent. After you dispute an entry, the credit bureau must report back to you within thirty days about the validity of an entry. If the bureau cannot obtain verification from the creditor, then the entry, legally, must be removed. If the entry can be verified, then it will remain on the report. Should an entry be deleted by a reporting agency, the credit bureau, again, must report back to you within 30 days that the deletion will be made.

Communication and Disputes Must all be in Writing

If you are disputing an entry with a credit bureau, all disputes must be made in writing. Make sure you send any correspondence, as well, by certified mail, return receipt requested, so you can retain a hard copy of the communication in your files.

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