How to Dispute Wrongful Credit Reporting by Collection Agencies
Consumers use credit for a variety of reasons. If the debt you incur from the extension of credit isn't repaid, the creditor may turn that account over to a collection agency. The collector will then report that debt to the credit bureaus and it will appear on your credit report. As a consumer, you have rights when it comes to your credit report. Under the Fair Credit Reporting Act, only accurate information may appear on your report. If a collection agency reports false data, you have the right to dispute it with the credit bureaus and have it corrected.
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Instructions
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Order a copy of your credit report. Under the Fair and Accurate Credit Transaction Act, consumers have the right to receive one free report each year from the three major credit bureaus: Experian, Equifax and TransUnion. You can order the report from the site Congress established under FACTA: annualcreditreport.com. You can also order it from the bureau's website, by phone or mail.
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Read the report carefully. Check the "Collections" section to see if the information in question is still present on the report. Bureaus update data on a regular basis and the contents of the report may have changed since you last viewed it.
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File a dispute online at the bureau's website. The online form will allow you to indicate which items you're disputing and the reason. You can also initiate a dispute by phone with a customer service rep. A mailed dispute should include a dispute letter that details the items your disputing, the reasons and any supporting documentation that's applicable to the situation.
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Print out the credit report if you accessed it online. FACTA allows for one free report. If you fail to print it but wish to view it at a later date, the bureau may charge you a fee. Print a copy of the online dispute form as well.
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Wait for the bureau to complete its investigation. Under the FCRA, bureaus have up to 30 days to investigate your dispute and make corrections. Results of a dispute submitted online are sent via email. Disputes submitted over the phone or by mail are sent by regular mail. The bureau will include an updated copy of your credit report that shows the changes that were made.
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Tips & Warnings
By law, bureaus can only verify information. If there is an error in the collection agency's records or the records of the original creditor, you may have to contact the agency or creditor directly to resolve the issue.
Avoid initiating a credit report dispute from a public computer. It could lead to identity theft. Only use computers that you trust are safe.
