What to do — and expect — if there’s a mistake on your credit report

Last year, we reported on the Trump administration’s gutting of the Consumer Financial Protection Bureau, or CFPB, the federal watchdog that among other things protects Americans from unfair or predatory medical debt collection and credit reporting practices.

Since then, we’ve been watching the fallout. The CliffsNotes:

• The Trump administration scrapped a Biden-era CFPB rule that would have removed medical debts from credit reports nationwide.
• Fifteen states passed laws banning medical debt from credit reports.
• But those state laws could still face court challenges.

Now, new reporting from the investigative reporting superstars at ProPublica reveals a new hole left by the CFPB’s collapse: No one is really helping people fix mistakes on their credit reports. And mistakes happen a lot.

Below, more on the crummy state of things, and what you need to know — and expect —if you find mistakes on your credit report.

Credit reporting errors are frustratingly hard to kill

Mistakes on credit reports are common.

One study estimates that 40% contain at least one error. And a major mistake can tank your credit — like it did for the Colorado accountant ProPublica wrote about, whose credit report showed six figures in student debt she says wasn’t hers.

Complaints about those mistakes to the three major credit bureaus — Experian, TransUnion, and Equifax — have skyrocketed in recent years. But according to ProPublica, the number of complaints resolved in consumers’ favor has plummeted since the CFPB stopped functioning.

So, yes… that’s pretty terrifying. Say you successfully dispute a medical debt you don’t owe, but it still shows up on your credit report. If you can’t get in touch with the credit bureaus to fix it, that can hurt your chances of getting a loan or a mortgage, and it can even mean higher interest rates.

Still, Chi Chi Wu, a leading consumer rights attorney at the National Consumer Law Center, says it’s absolutely still worth filing a dispute if you spot an error.

Fair warning, though; she suggests a slightly old-school approach. There’s writing involved. Printing involved. And yes, the post office is involved. Buckle up.

How to spot an error, and what to do next

You can pull your credit report for free once a week, without affecting your score. Consumer advocates suggest checking it before you need a loan, so you’re not scrambling at the last minute.

Once you’ve pulled your report, if you see something wrong that’s affecting your credit, here’s what to do:

1. Write a dispute letter addressed to all three credit bureaus — in your own words.

Yep, all three.

The collector or creditor who gave the wrong information technically has a duty to forward the correction to all of the big three reporting agencies, but that doesn’t always happen.

You can start with a template, but Wu recommends personalizing it as much as possible, since the bureaus are more likely to brush off disputes that sound copied and pasted.

2. Make at least three copies of each letter.

One for each credit bureau, one for the creditor, and one for your state attorney general, who can also enforce fair debt collection laws.

You’re going to send copies to all of them. While the letters will be addressed to the credit bureaus, you’ll want to note under your signature that you’re CCing those folks.

3. Send those copies by certified mail.

And ask for return receipts too. Wu says you want a “paper trail,” which is harder to establish with an online dispute.

4. Extra credit: Register a complaint with the CFPB.

Even though the agency has been kneecapped, Wu says her organization still encourages people to file complaints with the CFPB, “because we want a record of these problems.”

You can register a complaint with the agency here, and the NCLC has a how-to guide.

5. Rinse and repeat.

The bureaus are technically supposed to respond within 30 days, (though according to Wu, they don’t always.)

If it’s a no, or non-answer, Wu suggests disputing again after that time has passed, and repeating the process four or five times.

“Make something different each time” she says and “include an additional piece of information,” to make it more likely those follow-up disputes get read.

And if all else fails, she says consider hiring an attorney. She says the National Association of Consumer Advocates is a good place to start.

And if you want a more thorough walkthrough of disputing credit mistakes, there’s a bunch of great guides out there on this stuff — here’s one from PIRG, NerdWallet, and a third from Consumer Reports. And the NCLC has this detailed tipsheet.

If all of this leaves you feeling discouraged, you aren’t alone. Wu also noted that “even when the CFPB was at its most vigorous they [the big three credit reporting agencies] weren’t doing a great job.”

If, like me, you need to destress from news like this with some history, check out Throughline’s episode “What you’re worth” for the backstory to how America’s credit reporting system ended up this way.

And finally, in response to ProPublica’s reporting, lawmakers sent letters to the major bureaus late last month to express their concerns and ask for more information. We’ll keep following this story.

That’s all from me this week. Catch you next time!

— Claire