Tips to Improve Credit Scores by Removing Incorrect or Misleading Information
According to the Federal Trade Commission, five percent of American’s have errors on their credit report, and although that number seems fairly low, a recent investigation by the Columbus Dispatch found that those with errors on their reports can spend months, even years, attempting to get the erroneous information removed. Some of the mistakes can cause significant damage as consumers may be denied loans for cars, mortgages or other necessities.
Government Intervention
The investigation has led Mike DeWine, Attorney General for Ohio, to ask other governors to join him for further review of the practices of credit bureaus. One of the problems consumers discover when an error is found is that the law regarding how corrections must be made on reports is full of loopholes and other obstacles that prevent the average consumer from improving their credit score.
Federal Trade Commission Complaints
The Columbus Dispatch investigation also found that the FTC received more than 30,000 complaints about incorrect information in credit reports, including reports of deceased consumers who were still living, employment that began before they were born and other information that didn’t affect credit scores. However, the majority of the complaints dealt with accounts on credit reports that did not belong to the consumer. Because the law is not clear, credit reports often simply verify with the creditor and refuse to remove information. The creditor often cannot provide accurate verification to the consumer, however, but will not remove the item from the credit report.
Credit Bureau Keeps Erroneous Information on Reports
More than half the complaints filed with the Federal Trade Commission stated that despite following the process to request erroneous information be removed, they could not get the credit bureau to remove the errors. This has led the Obama Administration to appoint former Attorney General Richard Cordray to investigate and repair the credit reporting industry. Despite the investigation, the credit reporting agencies claim that those who wish to have correct negative information removed from their report filed many of the FTC complaints.
Credit Report Form of Debt Collection
Attorney General DeWine believes the agencies are not being truthful. He says there are many reports of consumers with documented proof that information on a report is incorrect, yet the bureaus refuse to accept their documentation, relying only on the data sent to them by the creditor. Creditors have a vested interest in keeping negative information on a credit report as it is a form of debt collection, and that they hope a consumer will pay the debt even if it is not theirs, in order to improve their credit rating.
The Lexington Law Firm offers assistance to consumers who have incorrect information on their credit reports. They work with credit bureaus and creditors in an effort to improve credit scores by removing incorrect or misleading information.
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Category: Debt
