Restoring Your Good Name - The Fair Credit Reporting Act
Charles Carreon
In today's credit-driven economy, the interest rate you pay can be a big factor in your finances. Bad credit information is more common than identity theft, and results in lots of people losing credit for no valid reason. Under the Fair Credit Reporting Act (“FCRA”), you can challenge the accuracy of information on your credit report, so there is no reason to be a victim. The CRAs are required to complete the investigation within a reasonable period of time, currently established as thirty days. Although CRAs do not have to respond to a consumer's dispute of their records if it is “frivolous or irrelevant,” a CRA “must assume a consumer's dispute is genuine, unless there is clear and convincing evidence to the contrary.” Since credit listings cannot be challenged on the basis of extenuating circumstances, such as unemployment or divorce, CRAs do not respond to hard luck stories.
The CRAs must investigate a consumer's dispute. They are required to check into the original sources of the disputed information, the creditor, and confirm that the information is accurate and current. If the credit bureau does not receive verification of the information within thirty days, it must delete the information from your credit report. Sending fax letters to CRAs, carefully using their internal tracking numbers, and following up persistently with both creditors and the CRA is necessary to get derogatory information removed.
In today's credit-driven economy, the interest rate you pay can be a big factor in your finances. Bad credit information is more common than identity theft, and results in lots of people losing credit for no valid reason. Under the Fair Credit Reporting Act (“FCRA”), you can challenge the accuracy of information on your credit report, so there is no reason to be a victim. The CRAs are required to complete the investigation within a reasonable period of time, currently established as thirty days. Although CRAs do not have to respond to a consumer's dispute of their records if it is “frivolous or irrelevant,” a CRA “must assume a consumer's dispute is genuine, unless there is clear and convincing evidence to the contrary.” Since credit listings cannot be challenged on the basis of extenuating circumstances, such as unemployment or divorce, CRAs do not respond to hard luck stories.
The CRAs must investigate a consumer's dispute. They are required to check into the original sources of the disputed information, the creditor, and confirm that the information is accurate and current. If the credit bureau does not receive verification of the information within thirty days, it must delete the information from your credit report. Sending fax letters to CRAs, carefully using their internal tracking numbers, and following up persistently with both creditors and the CRA is necessary to get derogatory information removed.