Credit Repair

What Steps are Followed after a Credit Report Dispute is Submitted?

When you submit a credit report dispute, there are certain steps that are followed by the credit bureaus and relevant businesses. TransUnion, Experian, and Equifax are three major credit agencies that handle your credit related details. They get information from businesses that you are having a financial relationship with and put together everything in order to prepare a report that eventually reflects your credit score. There are chances that they do not have all the information or that they have entered incorrect details. Therefore, it is important for everybody to review their reports at least once every year. If there are some mistakes over there, a dispute can be filed and get the information corrected. Following are the steps that are followed after a dispute is filed.

Investigation by the Credit Bureaus

When you file a credit report dispute, the bureaus start the investigation process in an attempt to verify the details. As per the laws, the bureau must complete the investigation and solve the issue within one month after receiving an application for it. However, if the applicant is supposed to provide additional details related to the dispute, the time period may be extended to 45 days. The businesses that provide these agencies credit-related information about a consumer are termed as furnishers or information furnisher. The bureaus send the information you have challenged to the relevant businesses (where the original details were received from) for verification. The bureaus must pass on the dispute details to the relevant furnisher within the first five days after an application is filed.

Investigation by the Information Furnisher

Information furnisher does a thorough review of the documents that you provide in support of your claim. When a conclusion is reached, the report is then submitted to the bureaus. Depending upon the nature of the credit report dispute and the conclusion of the investigation, the report may be sent to just one or two credit bureaus or to all of them.

Final Result

If it is found that the claim made by you is correct and that there are certain details on the report that you disputed are not correct, the bureaus will remove the incorrect entries and make relevant adjustments accordingly. The bureaus also send notifications to the information furnisher about the adjustments thus made. Besides that, if you allow, the bureaus can also send the correct reports to those businesses who have requested your report within the last 6 months or to the employers who requested for your report within the last 24 months.

If you are not satisfied with the final result and feel that bureaus have actually violated the law while dealing with your credit report dispute, you can file a complaint to the Federal Trade Commission (FTC).

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Posted in Credit Repair, Fix Your Credit | 2 Comments »

2 Responses to “What Steps are Followed after a Credit Report Dispute is Submitted?”

  1. [...] a letter addressed to Experian. Make sure you include your full name, address, entries that you are filing credit report dispute for, the reasons why you disagree, and the [...]

  2. Jack says:

    Credit report can not be correct always, there may be some incorrect entries which can contribute to your bad score. It is good to do a random check for your credit reports, at least once a year. Any individual can get his / her full report once in a year. If you find some incorrect details, you can file a dispute with three credit bureaus. They will start the investigation after it. The bureaus have to follow time limit of one month to 45 days to solve the case. Furnishers as mentioned in article are companies who will provide the credit related information of the consumer to the credit bureaus. The first step of the bureau is to provide the dispute details to the furnishers. This step should be completed with in five days. The furnishers will do their investigation and after gathering the details, they will send their report to the bureau. If your claim will found to be correct, the wrong entries will be disappeared form your report and the bureau will inform the furnishers also about the same. It is quite interesting to know the whole steps of credit bureaus and the mode of working they have.

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