Correcting errors in your credit file may get easier

The new Consumer Financial Protection Bureau (CFPB) has plans to make it easier for consumers to correct errors in their credit files.  Right now, you have the right to get free credit reports once a year and to challenge any entries that you believe to be wrong.  The credit reporting agency (CRA) has 30 days to check on the entry and if it is wrong, they are supposed to delete it.  If they think it is right, then you are allowed to append a 100-word statement to your file explaining why you think it is wrong.  (For sample letters and more details click here to our Credit Repair Help page.)

Many consumers have complained that this process is cumbersome and the CRA’s seldom make any changes to the credit report.  They rely on the creditor to verify your claim and end up with what you say versus what the creditor says.  They go with the creditor.  So the CFPB is working on ways to make the files more accurate.  One way is to reduce the frequency of name confusion.  Another is to provide rules that are more clear as to when the CRA is supposed to remove an entry that has been objected to.  Nothing is ready for prime time yet, but stay tuned.  And if you have comments go to the CFPB web site and get them on record.

Comments are closed.