As more people learn about the importance of good credit scores, many are checking their own credit reports and finding errors.  The Fair Credit Reporting Act (FCRA) provides consumer rights to dispute inaccurate and outdated information directly with the credit bureaus and also with the company reporting the incorrect information.

However, the FCRA also provides the credit reporting agencies (credit bureaus) with a way out.  Section 611(a)(3) says the credit reporting agencies (CRAs) can determine that a consumer dispute is "frivolous or irrelevant".  This means they can label your correction request as "frivolous" and take no further action on it.

Yes, really.

Over the past seven years, we've had clients come to us after trying to correct their credit reports and getting the 'frivolous' turn down.  It seems to happen from repeated requests with no supporting documentation or evidence.  It also can happen when some "credit repair" companies bombard the CRAs with the same letters and deletion requests from the consumer in a bi-weekly or monthly campaign. 

The FCRA does not state what determines "frivolous or irrelevant" status.  It does say that the CRAs must "…reasonably determine that the dispute by the consumer is frivolous or irrelevant, including by reason of a failure to provide sufficient information to investigate the disputed information."

So the only reason we know about in this determination process is not providing any proof or reasons why we think something is not correct on our credit file.

WHAT TO DO
1) Include your full name, current address, date of birth (DOB) and social security number (SSN) on the letter.  Attach a clear copy of your driver's license with the current address on it and a clear copy of your social security card.  This prevents a delay in your dispute investigation due to lack of proof of who you are.

2) Keep it courteous and professional.  Demanding, threatening, all caps, all bold, lots of exclamations and curse words will not help your cause.  Simply list the name of the company reporting the error, the account number as it appears on the credit report, why it is incorrect, and that you want it removed.

3) Attach copies of any supporting documents you have for your claim.  If an account shows a balance due and you paid it off, send in a copy of the cancelled check or the company's statement showing the payment.  If there is a collection listed for something you paid off to the original company, send in copies of the proof of payment. 

4) If an account shows up that you never had, send a letter to the company reporting it and ask them to do an investigation with your complete name, DOB and SSN.  If they reply that it is NOT your account, include a copy of that letter with your disputes to the CRAs. 

5) Send the correction requests to all three credit bureaus, even if you only reviewed one report.  This way, you make sure all of your credit files are accurate and will get updated reports from all three in response to your letters.   Save copies of the letters in a file marked Credit Reports.

6) Mark your calendar for six weeks from the date you sent the letters to the credit bureaus.  By law, they must respond within 30 days so you allow a week on each end for mailing time. 
NOTE: They have 45 days to respond if the dispute is from the consumers no-cost annual credit report.

If they do not respond within that time frame, the consumer can assume that the inaccuracies on the credit report must have not been verified and therefore they must be deleted from the credit report.  The consumer needs to follow up and be sure the CRAs reply in the time frame allowed by law.

Be credit wise, avoid the frivolous dispute.  Follow the steps above as you work toward accuracy on your credit reports.  When you need a credit consultant for further action, we're here and ready to help.