Your credit report is a compilation of information about how you pay your bills. Many of the businesses that you have a financial relationship with send your account information to the three major credit bureaus - Equifax, Experian, and TransUnion - who then put all the information together in your credit report. Whenever you make an application for credit, your credit report is reviewed to make a decision about you.
You can also review your credit report to make sure the information included is correct. Under the Fair Credit Reporting Act, you can have errors removed by submitting a written credit report dispute to the credit bureau(s) that list the inaccurate information. Once you submit your credit report dispute, the credit bureau(s) and the business providing the information have some steps to follow.
The Credit Bureau Investigates
The credit bureau must review all the information and documents received from you and investigate your dispute within 30 days of receiving it. The credit bureau may get 15 additional days if you send additional information pertaining to the dispute.
The credit bureau has to notify the business who provided the information - the "furnisher" - of the dispute within five business days of receiving it. The credit bureau also has to give your dispute information to the furnisher.
The Information Provider Investigates
Then, the information furnisher must review the information provided by the credit bureau and investigate the dispute. When the furnisher has reached a conclusion, it's required to report the results to the credit bureau. If the investigation results in a change to your credit report, the furnisher is required to let all three credit bureaus know.
Results of the Credit Report Dispute
If the credit bureau finds that the information you disputed is inaccurate or unverifiable, it's required to remove it from your credit report. The credit bureau must also notify the furnisher that it's been removed. With your permission, the credit bureau can send your updated credit report to any employer who has requested your credit report within the last two years, or to any other business who has requested your credit report within the last six months.
The credit bureau can terminate the dispute process if it deems your credit report dispute is frivolous. If this happens, the credit bureau must let you know within five business days and also tell you what you must do to restart the dispute investigation.
If you're not satisfied with the results of the investigation, you have the right to submit a 100-word statement to be added to your credit report. If you believe the credit bureau has violated the law while processing your dispute, you can send a complaint to the Federal Trade Commission (FTC).
