What Happens When You Dispute Something on Your Credit Report? - Crediful (2024)

When you have inaccurate information on your credit report, it’s important to dispute it, especially if the negative information lowers your credit score.

What Happens When You Dispute Something on Your Credit Report? - Crediful (1)

It’s your responsibility and in your best interest to fix your credit history whenever you see a problem. There are legal steps you can take to resolve most issues.

Sometimes negative information can show up on your credit report that doesn’t belong to you. It could be from identity theft, or perhaps the credit bureau has mistaken you with a family member or someone else with a similar name as you. It’s even possible that they have the wrong address or Social Security number as well.

Duplicate accounts have also been known to appear, or older information improperly deleted from a database.

How to Dispute an Account on Your Credit Report

To resolve inaccuracies on your credit report, start by obtaining a free credit report from each of the three main credit reporting agencies, Equifax, Experian, and TransUnion, which can be obtained from AnnualCreditReport.com.

Carefully review your reports for any incorrect information. If you find errors, the Consumer Financial Protection Bureau advises contacting the credit bureaus and filing a credit dispute.

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What Happens When You Dispute Something on Your Credit Report? - Crediful (2)

If you recognize a mistake, it will help if you have any supporting documentation to prove the validity of your credit dispute to the credit reporting company. You can find more information about mailing credit dispute letters here. Make sure you always send the dispute letters via certified mail, return receipt requested.

Do the credit bureaus actually investigate disputes?

Yes, the three major credit bureaus are obligated by law to investigate credit report disputes. The question is how well they do it. According to the Fair Credit Reporting Act (FCRA), they are required to investigate your disputes unless they consider them to be “frivolous.”

If your dispute is valid, the credit bureau will correct your credit report, but it could take some persistence on your part. After receiving your dispute letter or online dispute, it’s their responsibility to look into the matter.

Why do they have to investigate?

According to the Fair Credit Reporting Act, section 611:

If the completeness or accuracy of any item of information contained in a consumer’s file at a consumer reporting agency is disputed by the consumer and the consumer notifies the agency directly, or indirectly through a reseller, of such dispute, the agency shall, free of charge, conduct a reasonable investigation to determine whether the disputed information is inaccurate and record the current status of the disputed information, or delete the item from the credit file in accordance with paragraph (5), before the end of the 30-day period beginning on the date on which the agency receives the notice of the dispute from the consumer or reseller.

In other words, when you submit a dispute request, they must investigate it within 30 days. If they cannot provide verification, they must remove the item from your credit report.

Understanding How Credit Bureaus Investigate Disputes

Knowing how they conduct their investigations can make it easier to understand why it’s often difficult to get credit report errors removed.

Even though you make an effort to correct a matter, the credit bureau often won’t make the same effort on their end. The reason is that most credit bureaus handle initial credit disputes using a computerized system that doesn’t necessarily resolve the issue.

This system is known as e-OSCAR, and all three major credit reporting agencies use it to investigate disputes.

It may resolve the issue in some cases, but it’s not guaranteed to provide a solution. It’s also not considered sufficient, according to case law, which has shown it to propagate the same bad account information repeatedly.

Problems with computerized investigations are twofold. On one hand, they rarely represent a reasonable investigation. They can’t ensure the validity of given items when mistakes are propagated across multiple databases.

On the other hand, sometimes the dispute comes back repeating the same bad information and including more bad information of a different nature. The credit bureaus will often take this additional bad information and include it in your personal credit report, which only adds insult to injury.

How does the dispute process really work?

Ideally, the three credit bureaus would thoroughly investigate consumer disputes. However, in reality, they can’t be bothered and can’t easily be held accountable.

In addition to using computer programs that repeat negative information, the credit bureaus regularly claim that items are valid without investigating.

Case by case, there’s no good way to confirm or deny what they claim to be doing. So, unfortunately, if persistence doesn’t resolve the problem, the only solution is filing a lawsuit against them.

What if my credit report dispute is not resolved?

If a credit bureau doesn’t resolve your disputes, it can mean several things:

  • The original information providers who reported the information have successfully demonstrated its accuracy to the credit reporting agencies
  • The investigated information was insufficient
  • The credit reporting agencies have considered your dispute to be “frivolous” and won’t investigate further
  • The credit bureau is neglecting their responsibilities and declining to investigate the matter

Despite these challenges, there are still steps you can take.

Adding a Statement to Your Consumer Credit Reports

One step you can take in any of these cases is to request that a statement of your dispute be put into your future credit reports. This brief statement will show you contested entries even though the credit bureau did not remove them.

Providing such a statement shows you disagree with the validity of the information. The statement might not be useful in many instances. It also won’t repair your credit, nor will it necessarily help you when you need better credit scores.

Those who pull your credit report will often never read such a statement. They are only interested in looking at the numbers representing your credit score. However, if you do choose to ask for such a statement, you can also ask the credit bureau to send the denial statement to everyone who recently received a copy of your credit report.

Note: Some bureaus may request payment for this service.

Pursuing Disputes and Investigations Further

To pursue the matter further, it’s your right to request information on the method the credit bureau used to obtain their verification, as well as the details of said verification.

You can find more about this procedure in section 611 of the FCRA, which states:

(5) Treatment of Inaccurate or Unverifiable Information
(A) In general. If, after any reinvestigation under paragraph (1) of any information disputed by a consumer, an item of the information is found to be inaccurate or incomplete or cannot be verified, the consumer reporting agency shall–
(i) promptly delete that item of information from the file of the consumer, or modify that item of information, as appropriate, based on the results of the reinvestigation; and
(ii) promptly notify the provider of the information that the information has been modified or deleted from the file of the consumer.

Proof of Verification

According to the law, it is your right to receive proof of the verification, and if that proof is missing, to have the inaccurate entry deleted from your credit report. In addition, if there is no evidence or it’s unsatisfactory, you can rechallenge it or file a suit in court.

If you want to pursue the investigation further, use the phone number on your returned credit report or letter in which verification is claimed. Call the credit bureau and let them know you would like proof of the verification method and details about it.

If the credit bureau asks you to open another dispute, agree to do so. If they need additional information, use whatever information, or lack of information (names, numbers), you initially found when you sent your first letter of dispute.

If they still refuse to offer proof of the verification method or details about it, inform them you will sue them for non-compliance under section 616 of the FCRA.

Taking Legal Action Against the Credit Bureaus

It is your right to seek a legal remedy when they won’t work with you according to the rules and guidelines established by law.

When faced with a potential consumer lawsuit, the credit bureau might find it easier to remove the information from your credit report. However, you’ll need to have a good case.

You can let them know you will sue for non-compliance under section 616 of the FCRA. Or you might be able to sue for defamation. Let them know you’ve been talking to an attorney and that you know your rights.

You might need to contact a lawyer to send an “intent to sue” letter. Finally, you can also file a complaint with the Federal Trade Commission.

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Meet the author

Lauren Ward

Lauren is a personal finance writer who strives to equip readers with the knowledge to achieve their financial objectives. She has over a decade of experience and a Bachelor's degree in Japanese from Georgetown University.

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What Happens When You Dispute Something on Your Credit Report? - Crediful (2024)

FAQs

What Happens When You Dispute Something on Your Credit Report? - Crediful? ›

Quick Answer

Will my score go up if I dispute something on my credit report? ›

Disputing a charge on your credit does not directly impact your credit score. However, if your credit report changes due to the dispute, your score may change accordingly.

Is it a good idea to dispute a credit report? ›

You should dispute with each credit bureau that has the mistake. Explain in writing what you think is wrong, include the credit bureau's dispute form (if they have one), copies of documents that support your dispute, and keep records of everything you send.

What happens after you dispute something on your credit report? ›

The credit reporting company you sent the dispute letter to must investigate your dispute, forward copies of relevant documents to the company that provided the information about you, and report the results back to you. A credit reporting company is not required to take action about disputes that are frivolous.

Do credit bureaus really investigate disputes? ›

The Fair Credit Reporting Act (FCRA) is the federal law that, among other rights, gives you the right to dispute incomplete or inaccurate information on your credit reports. The credit reporting company must take steps to investigate the dispute when you notify them of an error.

What is the best reason to put when disputing a collection? ›

You should dispute a debt if you believe you don't owe it or the information and amount is incorrect. While you can submit your dispute at any time, sending it in writing within 30 days of receiving a validation notice, which can be your initial communication with the debt collector.

Will disputes hurt my credit? ›

Filing a Dispute Will Not Affect Your Score

If you are correcting identification or contact information, the change will not affect your score. However, if you successfully get harmful information removed, your score may go up. Really, you have nothing to lose by disputing an error on your report.

How can I raise my credit score 100 points in 30 days? ›

You can raise your credit score 100 points in 30 days by disputing errors on your credit report, paying off past-due accounts, and lowering your credit card utilization. Creditors typically report updated information monthly, so it is possible to improve your score by 100 points in 30 days.

Why did my credit score drop after a dispute? ›

Why did my credit score drop after filing a dispute? Your credit score may have dropped after you filed a dispute if information in that dispute had a negative impact on your score. You are not penalized for filing the dispute itself.

Do creditors respond to disputes? ›

Credit Bureaus – Dispute Process

After notification of the dispute, the agency or creditor has 30 days to validate the debt and respond to the credit bureau.

How often are credit disputes successful? ›

You might not always get a fair outcome when you dispute a chargeback, but you can increase your chances of winning by providing the right documents. Per our experience, if you do everything right, you can expect a 65% to 75% success rate.

Will a dispute get my money back? ›

If you successfully dispute a charge, the bank will notify the merchant and return funds to the issuing consumer via a chargeback.

How long does a creditor have to investigate a dispute? ›

How Long Will the Dispute Process Take? The FCRA requires the national credit bureaus to complete dispute investigations within 30 to 45 days, as follows: 30 days: Credit bureaus (referred to in the FCRA as credit reporting companies) must investigate and resolve disputes within 30 days of receiving them.

Is there a downside to disputing credit report? ›

Filing a dispute has no impact on credit scores. But if certain information on your credit report changes as a result of your dispute, your credit score can change. The nature of that change—whether your score goes up, down or stays the same—depends on what you are disputing and the outcome of the dispute.

Do banks actually look into disputes? ›

A cardholder begins the procedure by contacting their bank. It is possible that the buyer will claim that the disputed transaction was unauthorized or does not reflect what the seller promised. A card-issuing bank must analyze each dispute and determine culpability in a fair and unbiased manner.

How do I get something removed from my credit report? ›

How to remove negative items from your credit report yourself
  1. Get a free copy of your credit report. ...
  2. File a dispute with the credit reporting agency. ...
  3. File a dispute directly with the creditor. ...
  4. Review the claim results. ...
  5. Hire a credit repair service. ...
  6. Send a request for “goodwill deletion” ...
  7. Work with a credit counseling agency.
Mar 19, 2024

How long does it take for credit score to update after dispute? ›

If you file a dispute to address a credit report inaccuracy, federal law requires an investigation to be completed in 30 to 45 days.

Why did my credit score drop after I filed a dispute? ›

Why did my credit score drop after filing a dispute? Your credit score may have dropped after you filed a dispute if information in that dispute had a negative impact on your score. You are not penalized for filing the dispute itself.

What are the chances of winning a credit dispute? ›

You might not always get a fair outcome when you dispute a chargeback, but you can increase your chances of winning by providing the right documents. Per our experience, if you do everything right, you can expect a 65% to 75% success rate.

Can a disputed debt be put back on credit report? ›

In rare circ*mstances, items deleted from your credit reports can, in fact, reappear on your credit reports even after the dispute resolution process has been completed. This practice is referred to in the Fair Credit Reporting Act (FCRA) as "reinsertion."

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