Alarming Numbers of Credit Reporting Errors
Know the Risks
You may not believe it, but credit bureaus make credit reporting errors at an astonishing rate, jeopardizing credit checks more frequently than most would like to believe. According to a report by U.S. PIRG, a consumer protection advocate, nearly 80% of the study participant’s credit accounts were found to have minor and major blunders.
A quarter of respondents experienced major reporting errors that would lead to credit denials. Modifications to credit reports like “false delinquencies or accounts” and double listings of “mortgage or loan” accounts add up to 47% of the problematic credit report issues.
Beyond damaging delinquencies mistakenly included on your credit report, errors also come in the form of unreported positive credit history like “major credit, loan, mortgage, or other consumer accounts.”
While federal and state laws have addressed some consumer concerns, like the Fair and Accurate Credit Transactions Act, more could be done. The FACT Act includes provisions such as a consumer’s right to a free credit report once per year and identity fraud protection.
Nevertheless, other guards that should be considered are access provisions, like the ability for consumers to cleanse their record after identity fraudulence and credit report updates, such as what is being posted and by whom. Furthermore, consumers should have the right to gain financial compensation from a creditor found to be at fault for incorrectly modifying a credit report.
Protect Your Credit
Businesses, banks, property managers, and insurers all have immediate access to a consumer’s credit history at the click of a button, sometimes regardless if you have given access permission. Do not fall victim to harmful errors by creditors by neglecting to monitor your credit report. Remember to take advantage of your free credit report each year.
Please, do not hesitate to contact us for help with any questions or concerns about credit reporting errors. As your gateway to financial recovery, we are here to assist you in restoring your credit score and keeping your financial goals on track.