Credit report errors can cause credit denials. 

According to the Federal Trade Commission, one out of five consumers have credit report errors.   Credit report errors are often the result of mixed credit files.  A mixed credit report is a credit report that contains information about more than one consumer.  Mixed files are common amongst family members, especially juniors and seniors and twins.  Mixed files may occur because of the same or similar names and a shared address.  Credit report errors can also be a result of identity theft.  False inquiries, accounts , names and addresses are examples of credit report errors caused by identity theft.  Other common credit report errors include obsolete or inaccurate public record information.

Henrietta and Ronaldo Fabio, discovered credit report errors after being denied credit.  The false credit information related to a mortgage that was reported as a “foreclosure.”  That was untrue.  The mortgage was not in foreclosure as the two agreed to a loan modification with the lender.  However, the foreclosure status prevented the two from being approved for credit.  Fortunately, within couple was able to get the false credit report information removed from their credit file after making a dispute to Trans Union. However, most consumers are not as lucky.   Click here to ready the full story on ABC7 KGO-TV.

Credit report errors can prevent consumers from being approved for credit, employment, housing and even insurance. Banks use credit reports to determine eligibility for mortgages and loans. If a foreclosure appears on a consumer’s report, then mortgage companies may not approve the consumer’s loan application.  Credit card companies use credit reports to determine a consumer’s eligibility for credit, including the amount of the credit limit and interest rate.  Lower credit limits and higher interest rates may be given to those with lower credit scores (if they are approved at all) because of the perceived risk of non-payment or slow pay.  Employers also use credit reports.  Employers may decide whether to hire, promote or fire an applicant or employee based on information in the credit report.  Credit report history are just like report cards.  Creditors and landlords judge consumers’ past performance with others to predict how the consumer will most likely repay debt or rent in the future.

Consumers have the right under federal law to dispute credit report errors under the Fair Credit Reporting Act (“FCRA”).  Consumers should dispute credit report errors in writing and by certified mail.  Consumers should also keep copies of all disputes made to the credit bureaus and companies reporting the false information.  Likewise, consumers should keep copies of all communications from the credit reporting agencies, data furnishers, debt collections, etc. . . for future reference, especially if a lawyer is needed to help resolve the credit report errors.

The Adkins Firm understands how hard is for consumers to maintain their financial reputation.  We represent consumers with credit report errors due to mixed files and identity theft.   Under the FCRA, we also help consumers resolve the credit report errors with the credit reporting agencies and others.  If you credit report errors,  then contact attorney Micah S. Adkins for a free case evaluation.

If you would like to request your free credit reports from the nationwide consumer reporting agencies, then click here.  Remember—it’s your credit report!