Each of the three major national credit reporting agencies, Equifax, Trans Union, and Experian prepare credit report of citizens. Under the provisions laid down in the Fair Credit Reporting Act or FCRA, a citizen can ask for free report from them once every 12 months.

Reporting Process – How it Works

In United States, national credit reporting bureaus prepare the credit report of each consumer. Basic working features of the system are: -

• Experian, Equifax, and Trans Union are the three national credit report bureaus;
• Each of the bureaus will provide free credit reports once every 12 months on request to each consumer;
• Each of the bureaus has its own central website; mailing address, as well as toll free telephone number;
• Consumer has to fill up a request form and submit to get the free report;
• A consumer can ask for reports from all the agencies simultaneously or at different points of times, but once a year only.

How to Contact?

It is always advisable to contact the three major credit reporting bureaus at the central mailing address. If consumer contacts them individually then there are chances of such consumer paying up for a report that he or she is entitled to get free of cost. For paid reports the usual cost is $10.50 per report.

Dispute is Free of Cost

Disputing mistakes or wrong entries do not cost anything. Under the provisions of FCRA, both the credit reporting bureaus as well as the creditor are responsible for providing the correct reports. Accordingly, they are also responsible for rectification of defects in such reports. Consumer can avail the advantages of the provisions in FCRA. Contacting the credit bureaus or creditor for rectification of inaccurate information is within their rights under the law.

Components of Dispute

Having well framed contents in claim filed can assist self help credit repair. Such steps are -

• Informing the credit bureau specifically about the inaccurate information;
• Providing copies of documents and evidence in support of such claims;
• Complete postal address and contract details should be provided;
• Each item of dispute should be specified;
• Return receipts should be requested so that delivery is confirmed;
• Maintaining record with copies of all records is necessary.

Contents of Dispute Letter

A letter of dispute on wrong or inaccurate entries in credit report should ordinarily contain: –

• Name, address, and contact details of the claimant;
• Name, address, and contact details of the credit bureau and the creditor;
• Subject;
• Brief contents indicating the nature of dispute and the portion of the report that is disputed;
• Why the contents need to be corrected or deleted; the reasons thereof;
• Final request about the inaccurate information; what exactly the consumer desires as relief;
• List of documents enclosed.

Responsibilities of the Credit Bureaus

When the credit bureau concerned receives the complaint containing disputes raised by the consumer, they will take the following steps –

• Investigate the questioned items within thirty days of receipt of the complaints;
• Reject complaints considered frivolous;
• Forward all the data provided by the consumer to the reporting company;
• Original reporting company will investigate and resubmit their report and the complaints to the credit bureau with their findings and comments on it;
• If such feedback indicates the reported contents in the credit report as inaccurate, it will be deleted;
• Information provider has to notify such rectification to nationwide consumer reporting agencies;
• In result the file of the consumer gets rectified.

Procedure on Completion of Investigation

On completion of the investigation the credit reporting bureau should give the results in writing. They would also supply a free copy of the report when the dispute results in a change in the report. Credit bureaus should also inform the consumer about the details and address etc of the information provider. People that have received the credit report within last six months from the bureau shall be intimated about the corrections or changes made in the report.

Consumer must get results in writing when investigation is complete.