Credit bureaus must take care that your report is accurate
15 U.S.C. § 1681e(b)
In plain words
A credit bureau must follow reasonable procedures to make the information in your report as accurate as possible. An account reported with the wrong balance, status or dates, or mixed in from someone else's file, can be a sign those procedures failed. You can dispute it.
Who is protected
Every consumer a credit bureau prepares a report about.
When it applies
It has no special conditions: it protects everyone it names.
Check whether it applies to youWhat you can do
Open the Credit Health tool
Upload your free reports from AnnualCreditReport.com. The tool lists items you may want to check and explains your options. You decide what, if anything, to dispute.
Open the toolDispute the inaccurate item
Send a written dispute to each bureau that reports the item, saying exactly what is wrong and enclosing proof you have.
Open the tool
Honest limits
- Accuracy means correct, not favorable: accurate negative information can stay on your report.
- This is general information, not legal advice. It does not promise any result.
The law
- Federal lawFCRA — accuracy of reports
15 U.S.C. § 1681e(b)
What it says: Credit bureaus must follow reasonable procedures to assure maximum possible accuracy.
Read the official texthttps://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1681e&num=0&edition=prelim
Court cases
- Partial winSame topicTaggart v. Lorenzen
Taggart v. Lorenzen, 587 U.S. 554 (2019)
a creditor may be held in civil contempt for violating a bankruptcy discharge order when there is no fair ground of doubt that the order barred its conduct
- Homeowner wonSame topicJerman v. Carlisle, McNellie, Rini, Kramer & Ulrich, L.P.A.
Jerman v. Carlisle, McNellie, Rini, Kramer & Ulrich, L.P.A., 559 U.S. 573 (2010)
the FDCPA's bona fide error defense does not excuse a debt collector's incorrect interpretation of what the Act requires
- Homeowner wonSame topicKaltenbach v. Richards
Kaltenbach v. Richards, 464 F.3d 524 (5th Cir. 2006)
a person who meets the FDCPA's general definition of debt collector is subject to the whole Act even while enforcing a security interest
- Homeowner wonSame topicHeintz v. Jenkins
Heintz v. Jenkins, 514 U.S. 291 (1995)
the FDCPA applies to lawyers who regularly collect consumer debts, even through litigation
- Homeowner lostSame topicObduskey v. McCarthy & Holthus LLP
Obduskey v. McCarthy & Holthus LLP, 586 U.S. 466 (2019)
a business engaged only in non-judicial foreclosure is not a debt collector under the FDCPA, apart from the provision barring threats to take property without a present right
- Homeowner lostSame topicMidland Funding, LLC v. Johnson
Midland Funding, LLC v. Johnson, 581 U.S. 224 (2017)
filing an obviously time-barred proof of claim in bankruptcy does not violate the FDCPA
Related rights
Dispute errors on your credit report
15 U.S.C. § 1681i(a)(1)(A)
If your credit report has something wrong or incomplete — like a payment reported late that you made on time — you can dispute it with the credit bureau for free. The bureau must investigate, usually within 30 days, and fix or delete information it cannot verify.
Read this rightMake the company that reported the error investigate it
15 U.S.C. § 1681s-2(b)(1)
The company that reported the information — such as your servicer — must investigate when a credit bureau passes along your dispute, and fix what is wrong with every bureau. In many cases you can also dispute directly with that company, which must then investigate and report back to you.
Read this rightCancel a credit repair contract within 3 business days
15 U.S.C. § 1679e
You can cancel any credit repair contract, for any reason and without penalty, until midnight of the third business day after you sign it. The company must give you a "Notice of Cancellation" form in duplicate and may not start work during those 3 days. Some states give you 5 days.
Read this rightA credit repair company cannot charge you before the work is done
15 U.S.C. § 1679b(b)
Federal law bans credit repair companies from charging or taking any money for a service before that service is fully performed. A company that bills you up front, charges a "setup" or "first work" fee, or charges a monthly fee for work it has not done yet is breaking the law.
Read this rightA written contract and a rights disclosure come first
15 U.S.C. § 1679c
Before you sign, a credit repair company must give you a separate written statement titled "Consumer Credit File Rights Under State and Federal Law." No service can be provided without a signed, dated written contract stating the total cost, a detailed description of the services, any guarantees, how long it will take, the company's address, and a bold cancellation notice next to your signature. Any waiver of these rights is void.
Read this rightYou can recover damages when the FCRA is broken
15 U.S.C. § 1681n
A credit bureau or a company that reports to one that willfully breaks the FCRA owes your actual damages or statutory damages of $100 to $1,000, possible punitive damages, and your costs and attorney's fees. A negligent violation owes actual damages and fees. The claim must be filed within 2 years of discovering the violation and no more than 5 years after it.
Read this right