Information for Texans experiencing problems with correcting their credit reports from a Longview, Texas law firm with lawyers that handle cases involving inaccurate, false, or misleading reporting by credit bureaus.

Overview

“A good name is more desirable than great riches; to be esteemed is better than silver or gold.” -Proverbs 22:1

In this modern world, the credit reporting agencies (Equifax, TransUnion and Experian) exert a tremendous amount of control over our good names with respect to our finances. Unfortunately, these giant credit crunching machines make many errors, potentially damaging a person’s ability to obtain financing, favorable insurance and loan rates, and even employment.

Federal law called the Fair Credit Reporting Act (FCRA) sets out the duties and responsibilities of the credit bureaus (called credit reporting agencies in the FCRA) in issuing credit reports. The FCRA also sets out the responsibilities of the companies, such as debt collection agencies or creditors (called furnishers), who furnish credit information to the credit reporting agencies.

Importantly, this law explains to consumers how to dispute inaccurate, misleading, or false information. If a consumer follows this procedure, and the consumer reporting agency or the furnisher fails to correct erroneous information, the law provides for damages and correction by court order.

In a nutshell, to correct credit report errors, the consumer is required to follow a specific procedure to dispute inaccurate information. The consumer reporting agency has 30 days to verify the disputed information with the furnisher. If the furnisher of the information fails to verify the item, the consumer reporting agency must remove the entry from the credit report.

If the information is verified, the credit bureau must advise the consumer in writing that the furnisher has verified the information, and it will continue to be reported.

If the consumer reporting agency is unable to verify the information or if the furnisher advises there is an error, the consumer reporting agency is required to delete this information and to advise the consumer in writing that the information is being deleted.

If the consumer reporting agency advises the consumer that the information is verified and will not be deleted, the consumer may request a reinvestigation. Again, there is a specific process for doing this. Both the consumer reporting agency and the furnisher must reinvestigate the dispute. Once the reinvestigation is complete, the credit bureau must notify the consumer that it is deleting the information, or else confirm that they reinvestigated and found the information as accurate.

The consumer reporting agency and the furnisher must consider any documentation furnished by the consumer that challenges the validity of the erroneous information. Often the consumer reporting agency and furnishers fail to conduct more than a cursory investigation, and sometimes conduct no investigation. This can result in potential damages, both actual and punitive, as well as attorney’s fees and costs to both the consumer reporting agency and the furnisher.

Under the FCRA, the consumer reporting agency must follow reasonable procedures to provide accurate credit reports. Failure to do so may result in the consumer reporting agency’s liability for actual and punitive damages where warranted. Attorney’s fees and expenses are also recoverable in a successful FCRA case.

How do I obtain a copy of my credit report?

Unless you are filing bankruptcy or have some other urgent deadline for immediately obtaining a copy of your credit report, we recommend that you obtain a copy of the order form and print it out, fill it in and mail it. You may download the written form from:

Request Credit Report by Mail from AnnualCreditReport.com and mail it to the address on the form.

This does take longer and is more trouble than ordering the report on-line. It is still free and is a much better record of your attempts to correct errors. If you use the on-line process, you will not have a clear paper trail of what the credit reporting agencies were reporting at a certain point in time.

The on-line form also requires the consumer to agree that if there is a dispute about the credit report and you end up having to sue the consumer reporting agency, you are waiving your right to a jury trial.

Under the FCRA, every consumer is entitled to one copy of his credit report from each of the Big 3 credit reporting agencies each year. The FTC warns to be cautious about impostor sites, so be sure to carefully type in www.annualcreditreport.com. You can also go directly to the Big 3 sites to obtain a copy of your credit report and request a form for ordering your report which you mail in to the address on the form. You will pay from $8.00 (for a basic report of one bureau) on up depending on what you request.

To dispute errors on the report, send certified letters (return receipt requested) setting out the errors and requesting correction to the consumer reporting agency at the following addresses:

Equifax
P.O. Box 740241
Atlanta, GA 30374
1-800-685-1111
www.equifax.com

TransUnion
P.O. Box 2000
Chester, PA 19022
1-800-916-8800
www.transunion.com

Experian
701 Experian Parkway
Allen, TX 75013
1-888-397-3742
www.experian.com

Are there other situations where I might be eligible for a free report?

You are also entitled to a free report if you have adverse action taken against you based on a report from the consumer reporting agency, such as credit or employment being denied; if you are unemployed and plan to look for a job within 60 days; if you are on welfare or if you are the victim of fraud, including identity theft.

You have 60 days after receiving notice of the denial to request your free report. If you are denied credit or employment, you are supposed to be given a written notice detailing which consumer reporting agency report was relied upon in making the decision to deny you credit or employment. You have 60 days to request your free copy of the report.

Again, we strongly recommend you order your report by mail, making a clear document trail should a problem arise that you are not able to easily repair.

How do I make my credit report better?

No one can make any of the credit reporting agencies delete timely, accurate information. However, you can force the credit bureau to remove dated, erroneous, or misleading information, substantially improving your credit.

The credit reporting agencies may not report negative information about your credit, even if it is truthful, for more than seven years. The exception to this is Bankruptcy which may be reported for ten years from the date of the Order for Relief or the Adjudication. While the Fair Credit Reporting Act permits this reporting, most often the credit bureaus begin the ten year countdown from the date of the filing of the Petition.

The credit reporting agencies may not report incorrect, derogatory information. Additionally, convictions of a crime may be reported as long as they remain public record. With respect to debts which you have been unable to pay, the seven years begins to run when they are turned over for collection, internally or to a third party or when they are charged off. If the creditor does not turn the account over for collection or charge it off, the seven years begins to run 180 days from when the account becomes delinquent.

Should I hire a Credit Repair Company to assist me in improving my credit report?

Unfortunately, many credit repair companies are rip-offs, but certainly not all companies. A credit repair company is not going to be able to do anything that you cannot do yourself. However, if you want someone else to dispute false, derogatory information, you can use a credit repair company. Just be sure you know they are a reputable company.

Beware of a company that claims to be able to assist you in removing timely, accurate data from your report. We provide the forms on this website for you to handle the initial dispute. There’s a mistake on my credit report, how do I fix it? We can also assist you if you desire, but obviously, we charge for our time. The fee varies depending on the complexity of the case, however, we do offer an initial one hour consultation for $175.00.

If disputing the error does not result in correction of a legitimate error, we may be able to represent you in a suit against the credit bureau(s) or the creditor or both. We handle these types of lawsuits on a contingency basis, which means we do not charge you an attorney’s fee unless we win your case, and then we charge a percentage of what we are able to collect for you in damages.

Attorney’s fees may also be awarded, in which case, you will get a credit for any fees paid by the defendant against the percentage we charge for your award. We may require that you pay court costs and expenses, such as court filing fee, expert witness fees. We will estimate what your out of pocket costs will be at your initial consultation.

There’s a mistake on my credit report. How do I fix it?

STEP 1: Obtain your report

Order your credit report from each of the credit reporting agencies.

Follow the instructions in the section above: How do I obtain a copy of my credit report?.

STEP 2: Review your report

Once you receive your report, review each item and make sure it is accurate. For each debt listed, consider:

• Is the debt mine?
• Is the amount showing owed accurate?
• Is the debt over 7 years old?
• If you filed bankruptcy, is the bankruptcy more than 10 years old?
• If you have filed bankruptcy, is the debt showing a zero balance and that it was discharged in bankruptcy?
• Is the report showing a bankruptcy that is not mine?
• If the debt is showing that it was paid late, is that accurate?
• Was the debt paid late?
• Is the same debt being reported more than once?
• If a public record, such as a tax lien, is showed, and you have paid it, is it showing that the lien is paid?

STEP 3: Send dispute / challenge letters to agencies

For debts which are inaccurate, send a letter disputing or challenging the item to each of the credit reporting agencies that are reporting the item.

Download sample letter to the Credit Bureau.

You should specify why you are challenging the item, i.e. the debt is not yours, the amount is wrong, etc. This letter should be sent by certified mail, return receipt requested. You should keep a copy of the letter and the green card where the credit bureau signs acknowledging receipt of the letter for your records.

STEP 4: Send dispute / challenge letters to creditor or furnisher

For debts which are inaccurate, send a letter to the creditor or furnisher of information disputing the item they are reporting to the credit bureau.

Download sample letter to Furnisher.

Again, specify why you challenge the disputed item, attach documents establishing your identity, proof that supports your position where available, and send the letter certified mail, return receipt requested.

STEP 5: Confirm that information is deleted

If the credit bureau(s) response is that the information is being deleted, request a fresh credit report by mail (not online) and confirm that the information has been deleted.

If the consumer reporting agency responds that the information you disputed is being deleted, request your credit report again in 30 to 90 days, and again before applying for credit, insurance, or employment to be certain that the information does not reappear.

In some cases, the error returns for various reasons. Sometimes, the credit reporting agencies will cloak or cover up the erroneous information for a certain period of time. If the original creditor re-reports the erroneous information after the cloaking time is up, the error can reappear. You need to consult with an attorney who is experienced in Fair Credit Reporting Act cases. Call or email us for further assistance.

STEP 6: If erroneous information continues to be reported…

If you follow the above procedures, and erroneous information continues to be reported or the credit bureau or creditor/furnisher refuses to delete the information, contact our office.

If you are unable to get the credit reporting agencies to correct the problem by following this process, or if you are able to get the error corrected, but then it returns, you should call or email us right away. There are time deadlines, so do not delay.

I have tried to fix error(s) on my credit report. But they are either not corrected or are temporarily corrected and then return. What do I do?

Contact an attorney with experience in credit reporting cases.

I filed bankruptcy. I am trying to improve my credit score. What do you suggest?

Obviously, the first thing you need to do is obtain a copy of your credit report from each consumer reporting agency to see what is being reported. See the above section for instructions on how to obtain your credit report.

One common problem for consumers who have filed bankruptcy is that the consumer reporting agency will report that the consumer has filed bankruptcy, but will also show the debts discharged in the bankruptcy to be still due and owing, adversely affecting the consumer’s credit score. See the above section on Fixing Mistakes on Your Credit Report and follow the Steps to correct your credit report. As part of pre-bankruptcy counseling, we will give you ideas and tips that will speed the restoration of your credit score.

I co-signed on a debt. The debtor has filed bankruptcy. The bankruptcy is showing up on my credit report. What do I do?

You should follow the steps to correcting your credit report in the above section: There’s a mistake on my credit report. How do I fix it?.

I am having trouble fixing my credit. Should I hire a Credit Repair Agency?

If you can find a reputable credit repair agency and do not want to handle the matter yourself, this may work for you. However, use caution in hiring any agency. With some effort and diligence, you can follow the steps outlined above to correct your own credit report. We do offer this service at varying prices. Please contact us for more information.

Do I need a lawyer to help me fix my credit?

Maybe. Many people are comfortable handling the initial dispute themselves. We have tried to provide information to guide you in handling the initial dispute process yourself. In the many cases, this will correct the problem.

You need a lawyer if you follow the proper procedure and the credit reporting agencies do not correct the problem or if the problem reoccurs after you have gone through the dispute procedure and received written notice from the consumer reporting agency that the disputed item is deleted.

What is a FICO Score, and why do I care?

A FICO Score is a Fair Isaac Corporation score based on a computer generated model and certain factors which affect scoring. A complex computer program determines your score starting with a low of 300 and a high of 850. This score is important as it may be used to determine loan rates, credit availability, and insurance rates among other things.

Making sure that your credit report is accurate and does not contain old, derogatory information may greatly improve your score. FICO Scoring is one of several computer models used to determine a person’s credit worthiness for purposes of rating risk factors.

Someone has stolen my identity! Help!

Don’t panic. But more importantly, do not procrastinate. Take the following action immediately. Research has shown that the quicker a victim of identity theft acts, the less damage is done and the easier it is to avoid a big, tangled mess.

STEP 1: File a police report.

You need to file a police report where the identity theft occurred. Be sure to obtain a copy of the report as you may need to provide it at some point in the future. Texas law does require peace officers to make a written report when a consumer complains of identity theft. You are also entitled to a copy of the report.

STEP 2: File a Fraud Alert with one of the major credit reporting agencies.

You need to file a fraud alert with one of the Big 3 (Equifax, TransUnion, or Experian). The law has a “one-call” provision so that you are required to call all consumer reporting agencies. If you report a fraud alert with any one of the Big 3, they have a duty to notify the other bureaus of the fraud.

Once you file a fraud alert, any reports that are released by the credit reporting agencies are required to contain the fraud alert for a minimum period of 90 days unless you request that the fraud alert be removed. The fraud alert may be extended for a period of up to 7 years at your request. Under Texas law, the fraud alert may be extended by the consumer indefinitely for 45 day periods at a time, and this may be done by telephone provided the consumer provides property identity. We recommend, however, that you follow up with all telephone requests in writing, certified mail, return receipt requested.

The credit reporting agencies may not include you on any consumer lists sold to third parties for the purpose of soliciting credit or insurance for 5 years. While you only have to contact one of the Big 3, the contact information for the fraud alert for each of the credit reporting agencies is:

Equifax fraud department:
(888) 766-0008
Web: Equifax Fraud Alert

Experian fraud department:
(888) EXPERIAN (888-397-3742)
Web: Experian Fraud Alert Center

TransUnion fraud department
(800) 680-7289
Web: TransUnion Fraud Alert

Under Texas law, the consumer reporting agencies must maintain a toll free line for fraud alerts to be answered during normal business hours. After hours, there must be voice mail, and the call must be returned within two hours of the start of the next business day.

Once a fraud alert is included in your report, generally, creditors are put on notice of a potential fraud problem. But more importantly, the law requires that they exercise reasonable measures to ensure the identity of the person they extend credit to who has a fraud alert on their credit report.

Also, within four business days, the consumer reporting agency must block reporting of any information that the consumer has identified as being fraudulent. The consumer must provide an identity theft report. Under Texas law, the consumer reporting agency must tag the credit report with a fraud alert within twenty-four hours of the fraud alert request.

CONSIDER A SECURITY FREEZE

You may also request that your credit accounts be frozen under the Texas Security Freeze Law. To obtain a Texas Security Freeze, you must request a freeze by certified mail, return receipt requested. You must provide proof of your identity, your social security number, your birth date and other pertinent information.

The consumer reporting agency must provide in writing to the consumer within ten business days a confirmation that the freeze has been placed on the account. Additionally, the consumer reporting agency must provide a personal identifier or password for the consumer’s use in accessing information about the file. This can be used by the consumer to authorize a removal or temporary lifting (by telephone) of the security freeze.

There is a charge of approximately $10.00 to $12.00 per consumer reporting agency and each credit bureau must receive a separate letter. Requesting a security freeze differs from a fraud alert in that it is stronger and prevents anyone from accessing your credit file until you authorize the consumer reporting agency to release your report. This does not apply to existing creditors rights to periodically access your accounts.

You will have to weigh the risk of potential havoc from the identity theft against the inconvenience of not being able to apply for new credit, employment, an apartment, etc. until the freeze is lifted. You can have the freeze lifted either for a specific time or for a specific creditor, but there may be a charge of approximately $10.00 to $12.00 per consumer reporting agency.

STEP 3: Cancel any accounts that you know have been compromised.

STEP 4: Check for recent inquiries, new accounts, or other unusual activity.

Obtain a copy of your credit report and check for recent inquiries or new accounts opened without your knowledge or other unusual activity.

Examine your credit reports carefully. Look for any recent inquiries or new credit accounts. Take action (See section above: There’s a mistake on my credit report. How do I fix it?) to remove any accounts that are not yours. Save copies of all documentation and send everything return receipt requested. You are also entitled to two free credit reports per 12 month period from each of the Big 3, instead of one per year.

STEP 5: File a complaint with the Federal Trade Commission.

You may contact them by phone at 877-438-4338 or write:

Federal Trade Division
600 Pennsylvania Avenue NW
Washington, DC 20580

For more information, go to www.FTC.gov.