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How to deal with credit report errors

June 14, 2013 12:56 IST

How to deal with credit report errors

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These three steps will help you set the record straight

It is very important for every individual to ensure that her/his credit report is free from mistakes and should know what steps to follow in case s/he comes across any error in the report. Various surveys done in the US show that a high percentage of credit reports, around 80 percent, contain errors. There may be common errors like out of date house address, employment details or an account mistakenly attributed to a person. Errors may also include omissions like presence of a delinquent account that you have already fixed.

Many customers get infuriated when they come across any error in the credit report. However, if you notice any mistake in your credit report, do not panic. Remain calm and rational enough to approach credit report errors. Decide exactly what the mistake is and try to determine if it is really a mistake. With a little caution, such mistakes can be removed or updated rather quickly from your credit report.

You can take the following steps in order to remove mistakes from your credit report.

1. Maintain a good record

Make sure that you maintain a good record of all your telephonic conversations and other necessary documentation like an account statement that shows that you have paid your account completely.

This is important to support your claim of any inaccurate information. Proof can be anything from cancelled cheques to billing statements.

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Tags: US

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2. Inform the credit bureaus

In India, the Credit Information Regulation Act, 2005 (CICRA) gives an individual various rights concerning credit bureaus. First you should approach credit information bureau India limited (CIBIL) at www.cibil.com.

Make an official request in writing and get an acknowledgement of your request. The report would contain a brief description of what exactly a lender has reported about your account. This would enable you to take an appropriate action in case there is any incorrect information.

Specific measures have been provided in the act to assist a consumer in raising a dispute. In the US, Fair Credit Reporting Act (FCRA) ensures that consumers' rights regarding the credit information are not violated.


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3. Inform the lender or any other business that provided the incorrect information

Send the creditor a list of all your credit report disputes in writing. Make sure to call your creditor and ask about the specific address where you need to send the disputes so as to avoid any unnecessary delay in the investigation of the report.

Be sure to include copies, not originals, of documents that support your claim. If you are a victim of identity theft begin by reporting your case to the local police. They will begin an investigation of your case and will direct you to other agencies that can help you.

For a person who wants to procure information regarding her/his credit report from the credit bureau, the Reserve Bank of India has indicated that the credit information company must have suitable criteria to ascertain the person's identity. It is necessary for a company providing credit information to update the records at least within 15 days after being requested by an institution or a specified user.

It is very important to review your credit report. You now have an easy access to your credit information. For sending a request for your information report, you need to download and fill up a request form available at CIBIL's website. E-mail it to the address specified on the website. You can then mail the self-attested hard copies of your latest identity proof, address proof along with a demand draft of Rs 142.


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