If a credit reporting agency, debt collector, or creditor reports false information on your consumer credit report and doesn't correct it after you dispute it, it violates the Fair Credit Reporting Act (FCRA). Such violations can result in damages paid to you by whoever reported the false information and the credit bureaus.

However, despite the power of this statute, you can't simply file an FCRA case in federal court. You must first dispute the false information with the reporting credit bureaus. Additionally, to preserve your claims against the debt collector, creditor, or credit bureaus, it is essential to follow the proper dispute process. We'll discuss below the procedure for disputing a debt and what to do after a dispute.

Quick Note: There is no way to avoid the requirement to file a dispute with the credit bureaus. If you file an FCRA case without first filing a dispute, your FCRA claim will be dismissed.

The following is a brief overview of the dispute process, but it is not a substitute for a consultation with an FCRA attorney:

1. Check to see if the error is on all major credit reports.

You should obtain reports from all three major credit bureaus because errors on one agency's report may be duplicated on another agency's report.

Quick Note: Consumers can access their credit reports from all three major bureaus once per week, free of charge, at https://www.annualcreditreport.com.

2. Write a dispute letter to all the credit bureaus that have reported the error.

We recommend that our clients send a detailed dispute letter to each credit reporting agency currently reporting the false information. At the very least, the letter should contain identifying information and your reasons for disputing the entry. (The FTC website provides a sample dispute letter on its website.)

Quick Note: We do not recommend using the agencies' online dispute systems unless you also send a dispute by postal mail. A dispute letter is more likely to produce better documentation for any litigation than an online form.

Dispute letters should attach the following documents:

• The page from your credit report showing the disputed item,
• Any recent correspondence from the creditor relating to the item, and
• Any other information required by the credit reporting agency. (Typically, a copy of a driver's license or other identifying documents).

3. Download and complete the agency's printed form if it requires one.

Some credit bureaus offer downloadable and printable dispute forms. We recommend filling out the forms thoroughly. In the section labeled "dispute" or "investigation details," write "please see attached letter." Then, attach your dispute letter to the form.

You can find the dispute forms here:

• Experian Dispute Form
• TransUnion Dispute Form
• Equifax Dispute Form

Check each agency's website to ensure you have the latest form.

4. Send the letters by postal mail with delivery confirmation.

Always send dispute letters by mail using a method that includes delivery confirmation. It is crucial to retain copies of all items sent, including the proof of delivery. It is also fine to file an electronic dispute, but only in addition to mailing. Be sure to save clean copies of everything you mail or send electronically.

The current dispute addresses of the major credit reporting agencies are listed below, along with links to their respective dispute sites. However, you can also find addresses and links for each credit bureau by visiting the FTC website.

Equifax Information Services LLC
P.O. Box 740256
Atlanta, GA 30348

Experian
P.O. Box 4500
Allen, TX 75013

TransUnion LLC Consumer Dispute Center
P.O. Box 2000
Chester, PA 19016

5. Send a copy of the letter to the creditor and any debt collector handling the account.

I usually recommend sending a copy of the dispute letter to the creditor at the address provided on the credit report and the correspondence address on statements. (Be sure to mail with delivery confirmation.) This way, the creditor will have a harder time denying awareness of the false information. However, whether to send a copy of the letter to the creditor is a decision you should discuss with your attorney. (Make sure to redact any sensitive information you don't want the creditor to see.)

6. Wait for a reply and resend the letters, if necessary.

It may take up to thirty days to get a response from the agencies. However, if the credit bureau doesn't fix the incorrect information within that time, you should resend the dispute letter. Multiple attempts to challenge the incorrect reporting can strengthen your FCRA case.

7. Retain copies of any response.

Be sure to keep copies of any responses you get from the credit bureaus or creditors, including the envelopes. When scanning these documents, be sure to scan all pages, including the envelope. If you receive an email response, save it as a PDF or print a copy. You'll want to provide these copies to your attorney if you decide to pursue an FCRA case.

Quick Note: It's best to keep emails, text messages, and voicemails to and from creditors, collectors, credit bureaus, and other relevant parties in their original electronic form, just in case you need to prove the authenticity of a message. So, avoid deleting original messages.

Next Steps After Receiving A Response From The Credit Bureau

What if the credit bureau or creditor fails to correct the false information?

If the creditor or bureau does not correct false information after your dispute, you can file a lawsuit under the FCRA. Inform your attorney that you have received a response to your dispute. Your lawyer can help you decide if it's the right time to file a lawsuit. If you do not have an attorney, consult a local FCRA attorney or consumer lawyer immediately, as there is a statute of limitations for filing an FCRA claim.

Quick Note: The statute of limitations on an FCRA claim is two years from the date of discovery of the error or five years from the date of the violation, whichever is earlier.

What if the credit bureau or creditor corrects the false information?

In some cases, removing the false information is sufficient. However, if you can show that you were harmed, you can still file a claim under the FCRA even after the credit bureau or creditor has corrected the information. (See damages section above.)

What if the creditor tries to collect based on the false information?

Sometimes, debt collectors use false credit reporting as a collection tactic. If that is the case, the collector may have violated the federal Fair Debt Collection Practices Act (FDCPA), Pennsylvania Unfair Trade Practices and Consumer Protection Law (UTPCPL), or other consumer protection laws, in addition to the FCRA. In some cases, false credit reporting may rise to the level of defamation. Although the FDCPA applies to debt collectors, Pennsylvania state law applies many of its provisions to original creditors.

What damages are available for violations of the FCRA?

The FCRA, the FDCPA, and UTPCPL provide for damages and attorney's fees. You are more likely to recover if you can show specific damages, such as being denied a loan, missing an opportunity, or paying more for credit. Keep a record of any financial or other harm you've experienced because of the false reporting.

For more information, see also:

How Long Can Negative Information Remain on Your Credit Report?

How to File a Fair Credit Reporting Act (FCRA) Lawsuit in Pennsylvania