Agencies that enforce the rules and regulations of the Fair Credit Reporting Act (FCRA) and Fair Debt Collection Practices Act (FDCPA) and the Federal Trade Commission (FTC) have proposed new rules to promote the accuracy and integrity of information provided to consumer credit reporting agencies (CRAs or credit bureaus) and to allow customers to dispute inaccurate information directly with them.
Sometimes credit report errors can be major. Major errors can cause a consumer’s credit score to drop anywhere from 50-150 points. Seventy-five percent of credit reports contain at least one major mistake. This will greatly help consumers who have been victimized by employers, creditors, mortgage companies and banking industry professionals due to errors on their credit report they were unable to get corrected.
Under the newly proposed rules, data furnishers or those who provide consumer personal information to CRAs must develop practical policies and procedures to ensure that the information they are providing is accurate. The new rules outline instances when additional details may be necessary to keep the information that consumer credit reporting agencies provide from creating misleading impressions about a consumer’s creditworthiness.
Under the new rules, instead of filing a dispute only with CRAs, consumers can now take their complaint directly to furnishers, and furnishers are required to investigate the complaint.
If you currently have errors on your credit report that you have not been able to resolve file a written complaint with the FTC against the consumer credit reporting agencies and data furnisher. Make sure you provide supporting documentation to support your complaint.
Harrine Freeman is owner of H.E. Freeman Enterprises, a speaker, personal finance expert and the author of, “How to Get Out of Debt: Get an “A” Credit Rating for Free Using the System I’ve Used Successfully with Thousands of Clients.
H.E. Freeman Enterprises is a personal finance services company that helps clients restore their credit and learn how to manage their finances. She has appeared in Forbes, Market Watch, Essence, and Black Enterprise Magazines, as well as NBC, News Channel 8, the Prince Georges Gazette, Bankrate.com, Yahoo.com and Credit Cards.com.
She is a member of Credit Professionals International, the American Association of Daily Money Managers, SPAWN, Toastmasters, AAUW, National Association of Women Writers, and the Women Network.
For more information on how to get out of debt or to buy her book please visit http://www.hefreemanenterprises.com She can be reached via email at hfreeman@hefreemanenterprises.com.
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