The Fair Credit Reporting Act

Another common tactic utilized by debt collectors is to report inaccurate information to a consumer's credit report. This conduct tends to result in significant damage to the consumer and may constitute a violation of the Fair Credit Reporting Act ("FCRA").

The Kazerouni Law Group, APC, recommends that every consumer request a copy of their credit report from each of the three major credit bureaus (TransUnion, Equifax and Experian). Thereafter, review each entry on your credit report in order to determine if the information being reported is accurate.

Common issues to look for are the wrong amount being reported, the wrong charge off date and/or a creditor that you have never established a relationship with. Should inaccurate information appear on your credit report, the next step is to dispute the mark by written communication sent via certified mail to the credit bureau. Following receipt, the reporting party will have 30 days to conduct a reasonable investigation on the matter. Should the reporting party fail to investigate, the information will be deleted automatically. In the alternative, should the reporting party verify inaccurate information, this conduct may be illegal and may expose both the reporting party and the credit bureau to potential liability.