Credit Report Issues

Credit Report Issues (Fair Credit Reporting Act – FCRA)

Your credit report plays a critical role in your financial life. Lenders, landlords, employers, and insurance companies often review your credit history when making decisions about you. This means errors in your report can lead to unfair denials of credit, higher interest rates, and even lost job opportunities. CLA is a consumer protection law firm which focuses on helping people to address credit report issues and assert their rights under the federal Fair Credit Reporting Act (FCRA) – a law that guarantees you the right to maximum possible accuracy on your credit report.

Understanding Credit Reports and the Credit Bureaus

A credit report—which is technically called a “consumer report” under the FCRA—is essentially a summary of your personal credit history. It includes personally identifiable information (like your name, address, Social Security number) and records of your credit accounts, loans, and payment history. There are three major nationwide consumer reporting agencies (CRAs), commonly known as credit reporting agencies or credit bureaus: Experian, Equifax, and TransUnion. Each bureau maintains its own file on you, so the information that each CRA reports about you might be slightly different.

How is information compiled? Banks, credit card companies, lenders, and other businesses (often called “furnishers” under the FCRA) send information about your accounts to these bureaus on a regular basis (typically every month). For example, your credit card issuer will report whether you paid on time, how much you paid, your current balance, etc. The credit bureaus collect and update this information continuously to build your credit history. It’s important to note that not all creditors report to all three bureaus, so the details on your Experian report might differ slightly from those on your TransUnion or Equifax reports.

Your credit report will also show things like inquiries (when someone checks your credit) and certain public records such as bankruptcies. The information in these reports often comes directly from your creditors and reflects how you’ve handled your debts over time. Because so many important decisions rely on credit reports, it’s crucial that the information be accurate. Unfortunately, mistakes and inaccuracies do happen.

Common Credit Reporting Errors

Given the vast amount of data in credit reports, errors are more common than you might think. Some mistakes are minor, but others can seriously damage your credit scores or harm your reputation. Below are some of the most common credit reporting errors we see:

• Mixed Files: This occurs when someone else’s information gets mixed into a credit report created about you. It often happens to people with similar names or Social Security numbers. For example, a CRA might put another individual’s accounts on your report because they think those accounts belong to you. A mixed file can lead to accounts you never opened showing up on your credit history, dragging down your credit through no fault of your own.
• Identity Theft Indicators: If you’ve been a victim of identity theft, your credit report may show accounts or addresses that aren’t yours. For instance, a thief might open a credit card in your name and not pay the bill, resulting in a delinquent account on your report. Incorrect accounts resulting from identity theft are a serious error that can be challenging to fix. (If you see any suspicious accounts on your report, it could be a red flag that your identity was stolen.)
• “Deceased” Reporting: Sometimes, a consumer reporting agency obtains information from a bank, lender, or other company (such as another credit bureau) which wrongfully labels a consumer as “deceased”. Inaccurately reporting a consumer as dead is one of the most serious mistakes a CRA can make, because deceased individuals have no need to participate in the credit or banking systems. Therefore, being wrongfully labeled as “deceased” can lead to you to being locked out of your financial accounts completely until the error is resolved.
• Outdated Negative Items: The FCRA limits how long negative information can stay on your credit report. In general, most negative marks must be removed after seven years, and bankruptcies after ten years. An outdated (or “obsolete”) item is a derogatory mark (like an old collection account or late payment) that remains on your report past the allowed time frame. It is inaccurate for an account to continue reporting on your credit after it is outdated and obsolete.
• Account Re-Aging: This is when an old debt is improperly reported with a new date to make it look recent. For example, a collection account might be given a newer “date of first delinquency” than it actually has, causing it to linger on your report longer than the law permits. Any incorrect dates in your file – such as wrong last payment dates or delinquency dates – can extend how long a bad debt affects you. Re-aging is not only unfair, it’s illegal under the FCRA’s rules for reporting old debts.
• Reinsertion of Deleted Data: You may go through the dispute process and get a negative item removed, only to have it reappear on your report later. This practice (known as “reinsertion”) can happen if the furnisher later verifies the item or accidentally reports it again. The FCRA has strict rules for reinsertion – the credit bureau must not put the item back unless the source certifies it’s accurate, and the bureau must notify you within five business days if previously deleted information is reinserted. If you see a deleted error pop back up on your report without notice, it’s a problem.
• Incorrect Payment History: Credit reports often list whether each monthly payment on an account was on time or late. A common error is when late payments are reported even though you paid on time, or an account is marked “delinquent” by mistake. An inaccurate payment history can significantly hurt your credit score because payment history is a major factor in credit scoring. It’s crucial that your reports only show accurate payment histories for all your accounts.
• Inaccurate Balances or Account Status: These errors involve the current status or financial details of your accounts. For example, an account might show the wrong balance, making it look like you owe more debt than you really do. Or you might even be listed as the owner of an account when you’re only an authorized user. These status errors can mislead lenders and make your credit profile appear riskier than it is.

Take Action – Get Help with Credit Report Errors

A flawed credit report can feel like an overwhelming problem, especially when you’ve been unfairly turned down for a loan or job because of it. Remember: you have rights and options under the FCRA. If you believe your credit report contains mistakes or wrongful information that’s harming you, our firm is here to help. We encourage you to reach out for a consultation – our consumer protection attorneys can evaluate your situation, explain your rights, and guide you through the steps to fix the issues.

Don’t let unresolved credit report errors continue to damage your financial well-being. Whether it’s assisting with the dispute process, preserving your rights under the FCRA, or aggressively litigating on your behalf, we work to hold the reporting agencies and furnishers accountable.

If you spot any of these errors—especially ones that cause derogatory marks on your reports—it’s important to take action to correct them. Call us at (757) 930-3660 or Contact us Here for a Free Case Review.