How to correct and protect your credit.

If there are inaccuracies in your credit report, you have the right to correct them. Here’s how to do it.

Under the federal Fair Credit Reporting Act, both the consumer reporting agency (CRA) and the organization, such as a bank or credit card company, that provided the information to the CRA have responsibilities for correcting inaccurate or incomplete information in your credit report. To protect all your rights under the law, contact both the CRA and the information provider. Write the CRA, stating the information you believe is inaccurate. Include copies (not originals) of documents that support your position. In addition to providing your complete name and address, your letter should clearly identify each disputed item in your report and factually explain why you dispute the information, requesting deletion or correction of those items. You may want to enclose a copy of your report with the items in question circled. Send your letter by certified mail, return receipt requested, so you can document what the CRA received. Keep copies of your dispute letter and enclosures. CRAs must investigate the items in question, usually within 30 days, unless they consider your dispute frivolous. They also must forward all relevant data you provide about the dispute to the information provider. After the information provider receives notice of a dispute from the CRA, it must investigate, review all relevant information provided by the CRA, and report the results to the CRA. If the information provider finds the disputed information to be inaccurate, it must notify all nationwide CRAs so they can correct this information in your file. The FCRA also requires that:

• Disputed information that cannot be verified must be deleted from your file.
• If your report contains erroneous information, the CRA must correct it.
• If an item is incomplete, the CRA must complete it. For example, if your file showed that you were late making payments, but failed to show that you are no longer delinquent, the CRA must show that you are now current.
• If your file shows an account that belongs only to another person, the CRA must delete it.

When the investigation is complete, the CRA must give you the written results and a free copy of your report if the dispute results in a change. If an item is changed or removed, the CRA cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness, and the CRA gives you a written notice that includes the name, address, and phone number of the provider.

Also, if you request, the CRA must send notices of corrections to anyone who received your report in the past six months. Job applicants can have a corrected copy of their report sent to anyone who received a copy during the past two years for employment purposes. If an investigation does not resolve your dispute, ask the CRA to include your statement of the dispute in your file and in future reports. In addition to writing to the CRA, tell the creditor or other information provider in writing that you dispute an item. Again, include copies (not originals) of documents that support your position. Many providers specify an address for disputes. If the provider then reports the item to any CRA, it must include a notice of your dispute. In addition, if you are correct and the disputed information is not accurate, the information provider may not use it again. This information is adapted from "Bound For Good Credit" published by the Federal Trade Commission.