Finance

How to Dispute and Resolve Debit Dispense Error or Credit Report Error

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This is a guide on How to Dispute and Resolve Credit Report Error and Debit Dispense Error for Visa Card and Master Card. I have taken time to illustrate how you can remove inaccurate or incomplete information from your credit report. Basically, the very first step to fixing credit problems in a financial institution is identifying them.

I wouldn’t know if it was pandemic-related problem, but most loan consumers who went to the bank to check their credit reports last year apparently discovered lots of wrong records. In fact, from March to July last year, customer complaints to the Consumer Financial Protection Bureau about wrong credit reporting surged by 86%. This invariably led to grievances about account history accuracy. This was according to a report by the U.S. Public Interest Research Group, an advocacy organization.

What causes a Credit Report Error?

Now, you will want to ask how error entered your credit account history. It simple. A credit report error can move crept in if a credit card issuer or lender make temporary panic-related changes to your loan repayment terms. These payment records errors can go a long way to hurt your credit score. And it may in-turn affect your ability to qualify for credit cards and loans elsewhere. This can also be impactful to your interest rates.

It is important to know that the Fair Credit Reporting Act, passed a federal law in 1970. This law gives you the full rights to dispute incorrect or inaccurate information you might find in your credit report. Written below are more information about how to dispute a credit report error. But first, see our trending articles for the week;

What is the Best Credit Dispute Process?

According to the Federal Trade Commission, disputing a credit report error with a credit bureau is a simple 6-step process:

  1. Identify the error: You alone can carefully review your credit report and find an error.
  2. Investigate the problem: The credit bureau will investigate your dispute within 30 days.
  3. Dispute the inaccuracy: You have to adequately initiate a dispute with the credit bureau and provide supporting documents.
  4. Decide next action: In this case, it is the credit bureau decides whether your report contains an error based on your documentation. They also factor in the information from the data furnisher, such as a creditor or lender.
  5. Mail Notification. After the investigation of the credit bureau, you’ll then be notified of the outcome within 5 days of the decision.
  6. New report update. Request for correction. After the corrections has be made, you can now request that the credit bureau to send updated reports to your employers. In most cases, the history can be from last two years while others in the last six months. they will have to also notify those who accessed inaccurate reports.

1. Review Your Credit Reports to Identify Errors

Just as I’ve explained above, finding problems with your credit reports is the very first step in resolving them. There are several websites that you can get free weekly online access to your reports. Example of such sites is AnnualCreditReport.com. I advise you to always check them from time to time with the yearly. But you can also check it more frequently in certain situations to be on the safe side.

Question: When exactly is the best time to check your credit reports more often? Always check you history if you are planning to apply for a loan/credit any time soon. Secondly, make sure you always check you credit reports history if you have an elevated risk of identity theft. That is if you a victim of fraudulent transaction or a data breach.

“Please ensure to review your credit reports from all 3 credit reporting agencies. This is because; each one may have slightly different information. A This recommendation is from Mr. Freddie Huynh, vice president of data optimization that works with a debt solutions company: Freedom Financial Network.

Common Credit Report Errors:

What are the information worth correcting on your credit report? This is a vital question to ask so as to know where to look. Therefore, as you review your credit reports online, carefully search for these common credit report errors that usually occurs:

  • Look out for incorrect identifying details, such as your name, address, date of birth, phone number or Social Security Number.
  • Check to related accounts that doesn’t belong to you, including fraudulent accounts, collection accounts or accounts that belong to someone with the same or a similar name combination.
  • Put your eyes on open accounts previously reported as closed, and vice versa.
  • Pay attentions to accounts that list you as owner instead of the authorized user.
  • Investigate accounts that are mistakenly shown as late or delinquent but are current under COVID-19 relief programs.
  • Identify duplicate accounts which can happen from credit staffs.
  • Check mistakes like incorrect delinquency date, account opening date or last payment date.
  • Verify your transactions and flag up incorrect balances or credit limits.
  • Raise alarm for credit inquiries you didn’t authorize.
  • Report any public records that don’t belong to you, such as a bankruptcy, late payments etc.

Most a-times, whether to dispute an error or not will be sorely your responsibility. Its your call if you may not want to correct an address that’s off by one letter. But bear in mind that, a wrongly written address could indicate fraud and will have a red flag. Knowing this, it must have to be fixed as soon as possible. These are recommendations from Mr. Gerri Detweiler, the education director for Nav, which matches small businesses with financing solutions.

In the the same vein, a misspelled name might not seem worth the effort to correct it but could leave you open to larger issues in future. Similarly, FTC informs us that existing accounts that aren’t yours could end up being added to your credit report without notification.

Although, an unauthorized credit inquiry may not be worth your time to track down, it is still important to check it out, Detweiler says.

“Inquiries only make up about 10% of your score. They don’t even have as much impact as most people think,” she says. “On the long run, it’s not really a key factor that’s really worth getting worried about.” So this is not really a problem.

In all, just try to focus on fixing errors that can make a big difference in your credit score, Detweiler says. “If records show you were late in repayment and you weren’t, that’s absolutely worth disputing almost immediately,” she says.

2. Identity Theft

How does identity theft happen? It occurs when an unknown person steals your personal information to commit fraud. These fraudulent transactions may include applying for credit or making unauthorized purchases online.

You can officially report identity theft to the Federal Trade Commission (FTC) online at official IdentityTheft.gov or by phone call at )+1-877-438-4338. Try your best to explain by mail what transpired and get a recovery plan that can be updated ASAP.

However, if you decide to call, you will not receive an ID theft report, which can help you prove to intending employees or businesses that someone stole your identity. They can only help you fix problems caused by the incident. But no evidence will be made available.

3. Prepare to Dispute the Error with FTC

Its not going to be easy, but you will need to completely dispute the error with the credit bureau that created the report. You still have to contact the company that provided the information, known as the data furnisher.

For example, if an error appears on 2 out of 3 account reports – let’s say, TransUnion and Experian but not Equifax – you need to dispute the mistakes with Experian and TransUnion.

Supporting Documents to Dispute Credit Error

You will have to Prepare to support your assertion that the report is wrong with copies of these documents:

  • Print copy of an identifying documents with your correct name and address, such as a driver’s license, birth certificate or utility bill.
  • Approach your bank and request a current bank statements with information such as balance, credit limit, payment status and account status (open or closed).
  • Provide proofs of canceled checks if any.
  • Add a copy of student loan disability letters (if applicable).
  • Black and white copy of court documents, such as bankruptcy schedules.
  • Send in your copy of relief program agreements.
  • Photocopy of any letters from a lender showing an account was corrected.
  • Verifiable proof that an account was the result of identity theft.
  • A copy of correction letters from a lender.

4. Dispute the Error With the Credit Bureaus

One of the fastest and easiest way to file a credit dispute/complaint is by visiting the bureaus website online. But you can also do it by sending mail or by phone call.

But regardless of how you file your case, use the CFPB’s templates for the dispute letters to the credit bureau. Going forward, you may also want to include a copy of your credit report with the inaccurate or incomplete item marked or circled. Then your letter will explain why it is wrong.

Do not let anyone take money from you because filing a dispute is free. But, make sure you follow the process for each credit reporting agency.

Filing a Dispute With Equifax

Website Online: You can file a dispute on the Equifax website if you have a myEquifax account or once you create one. Check the status of your dispute through the account.

Mailing Address: Use courier services to send your information to Equifax Information Services LLC, P.O. Box 740256, Atlanta, GA 30374-0256.

Phone Call: You can Call 866-349-5191 between 8 a.m. and midnight Eastern Time Monday through Sunday.

Filing a Dispute With Experian

Website Online: First, you have to Create an Experian account to submit a dispute online and monitor the status of your dispute.

Mailing Address: Go ahead and download, print, complete and mail this dispute form to Experian, P.O. Box 4500, Allen, TX 75013.

Call Phone: Call the number on your Experian credit report to initiate a dispute by phone.

Filing a Dispute With TransUnion

Online: Start a TransUnion account or sign into it to file or check the status of a credit dispute.

Mail: You will need to provide as many details as possible to TransUnion to complete your dispute by mail. Send your name, address, Social Security number, birthdate, name of the data furnisher, reason for your dispute and any corrections to personal information, such as address or phone number.

If possible, include the partial account number of the disputed item from your credit report and your TransUnion file number. Mail your documents to TransUnion Consumer Solutions, P.O. Box 2000, Chester, PA 19016-2000.

Phone: Call 833-395-6941 between 8 a.m. and 11 p.m. Eastern Time Monday through Friday.

5. Contact the Data Furnisher Via Phone or email

The reason you have to contact the data finisher is because you can correct an error with the credit bureau but not the finisher. Therefore, you have to fix it with the data furnisher, so that the mistake will disappear on your credit report. That’s because the data furnisher is the final source, and the credit bureau only reports that information.

Note that if you correct your name with the credit reporting agency but not the data furnisher, for instance, your credit report will continue to show the wrong name.

Please you can contact the data furnisher to correct the information that was wrongly uploaded. The CFPB offers further guidance and a sample dispute letter. Check it our for more details.

6. Wait for and Review Responses

From experience, we know that credit bureaus and data furnishers will respond to your dispute within 1 month, according to the CFPB. However, just note that if you provide additional information related to your dispute during the investigation, you could wait up to 45 days before you get a response.

Moving forward, when a credit bureau completes an investigation, it must notify you of the results within five business days. So, the credit bureau could decide to:

  • Decide to make no change to your credit report.
  • Input or update your credit report or not.
  • Completely delete information from your credit report.

You will receive a free copy of your updated report to verify the correction. This process will be repeated as errors must be disputed separately with each credit bureau.

If You’re Unsatisfied With the Outcome

  • Dispute the error again: If you have additional information, submit it to the credit reporting agency or the data furnisher with a letter explaining the enclosure. Ask the agency to send you the materials it used for the decision and escalate the dispute if necessary.
  • Report the credit bureau: File a complaint with the FTC and the CFPB if the credit reporting agency is not providing adequate assistance or taking your dispute seriously.
  • Compose a statement of dispute: “If the dispute has been resolved but the consumer still disagrees, the consumer can leave a statement on the credit report indicating that they do not agree with the information on the report,” Huynh says. Your statement should tell your side of the story in 100 words, but creditors are not guaranteed to consider it.

7. Review Your New Report

As a complainant, you will receive an updated copy of your credit report from the credit bureau once your dispute has been resolved. Verify that the mistake does not appear on the report.

Lastly, just continue to monitor your credit reports for errors and to make sure that old errors do not reappear.