Your credit report plays a crucial role in your financial life. It impacts your ability to secure loans, credit cards, housing, and even employment. However, credit reports can contain errors that negatively affect your credit score. In New Jersey, as in the rest of the United States, consumers have the right to dispute inaccuracies on their credit reports under the Fair Credit Reporting Act (FCRA). This article explains how to dispute credit report errors in New Jersey and protect your credit standing.
Common Credit Report Errors
Credit report errors can take many forms, including:
- Incorrect personal information (wrong name, address, Social Security number).
- Accounts that don’t belong to you (due to mistaken identity or identity theft).
- Incorrect account statuses (accounts reported as late or delinquent when they are current).
- Duplicate accounts listed more than once.
- Outdated information (negative items that should have been removed).
- Incorrect balances or credit limits.
Reviewing your credit report regularly can help you spot these errors early and take corrective action.
Step 1: Obtain Your Credit Report
Under federal law, you are entitled to one free credit report every 12 months from each of the three major credit bureaus: Equifax, Experian, and TransUnion. You can request these reports at AnnualCreditReport.com, the only authorized website for free credit reports.
During times of financial hardship, such as the COVID-19 pandemic, the credit bureaus may offer free weekly reports. Check the website for current offerings.
Step 2: Review Your Report for Errors
Carefully examine each section of your credit report, including:
- Personal Information: Verify your name, address, and Social Security number.
- Account Information: Review account names, balances, payment history, and statuses.
- Public Records: Ensure there are no inaccurate bankruptcies, judgments, or liens.
- Inquiries: Check for unfamiliar inquiries that could indicate identity theft.
Highlight any discrepancies or errors that you find.
Step 3: File a Dispute with the Credit Bureau
If you find errors, you can file a dispute directly with the credit bureau that issued the report. Disputes can be submitted online, by mail, or by phone. Submitting disputes in writing via certified mail with return receipt is recommended for documentation purposes.
Information to include in your dispute:
- A clear explanation of the error.
- Supporting documentation (such as account statements, payment records, or identity theft reports).
- A copy of your credit report with the error highlighted.
The credit bureau is required by law to investigate your dispute, typically within 30 days.
Step 4: Notify the Furnisher
In addition to contacting the credit bureau, you should also notify the furnisher (the company that provided the incorrect information, such as a lender or creditor). Send a written dispute along with supporting documents, requesting that they correct the information they have reported.
Step 5: Review the Investigation Results
Once the credit bureau completes its investigation, they will provide you with the results in writing. If the bureau finds that the information was inaccurate, they must correct or remove it. You are also entitled to receive a free copy of your updated credit report if changes were made.
If the dispute is denied and you still believe the information is incorrect, you can request that a statement of dispute be added to your credit report, explaining your side of the issue.
Step 6: Consider Further Action
If the credit bureau or furnisher refuses to correct an error that you believe is valid, you may:
- File a complaint with the Consumer Financial Protection Bureau (CFPB).
- Contact the New Jersey Division of Consumer Affairs.
- Consult with a consumer protection attorney to explore legal options under the FCRA.
Conclusion
Disputing credit report errors in New Jersey is an important step in safeguarding your financial health. By regularly reviewing your credit reports and taking prompt action to correct inaccuracies, you can maintain an accurate credit profile. Understanding your rights under the Fair Credit Reporting Act ensures that you are treated fairly and that your credit report reflects accurate information.