Credit Reports are crucial for all those people who plan to buy a house, apply for a credit card, apply for a job, or a host of other activities. Each month, a detailed credit report is sent by one’s lenders and creditors reflecting complete information about the account.
Since the bureau (CIBIL) handles numerous accounts of individual clients, it may contain errors at times. It may be anything from falsely reported bankruptcy to a late payment detail. All this will mistakenly end up in a reduced credit score. Today, all most all business considers one’s credit report to make decisions it is vital that the report is accurate.
RBI law offers every individual the right to an accurate credit report. Credit bureaus certainly cannot register anything that’s incomplete, inaccurate, or unverifiable. Hence, people have the right to dispute errors so that errors can be removed from the credit report.
The Items That Can Be Disputed:
Technically, one can dispute anything, but the fact that needs to be considered here is that the credit bureau will do a thorough investigation and will rectify only those things which they feel are reported wrongly. People have the right to dispute credit report items that are out of date, incomplete, inaccurate, or the ones you believe cannot be verified. Negative items, except bankruptcy, can appear in one’s report for seven years – bankruptcy is allowed to remain for ten years. In case, the report has negative entries older than seven years, the holder has the right to dispute them. Other things that can be disputed are:
- Late payments entries which were actually made on time.
- Inaccurate account balance, loan limit or credit limit
- Accounts that aren’t yours
- Inaccurate creditor
- Inaccurate account status, for instance, an account status that is reported as past due is actually a current account.
Decide Which Way You Want to Make Your Dispute:
One can place a credit report dispute either by mail, or online, over the phone, or can hire the services of a credit rectification company. In order to dispute either by phone or online, one should have ordered a copy of the credit report within the past month. This is because while getting in touch with them the applicant will have to provide his/her credit report number.
Online: A number of people prefer to dispute credit report errors online, but there are a number of drawbacks to the same. When an application for rectification is made online, the results are also given online. However, for sending proofs like payment receipts, closing documents, etc. one will have to mail them for further rectification.
Phone Call: One can also ask for rectification by making a phone call. On request, the bureau will ask the application for the report number, and steps will be taken to correct the same.
Mail: One can also place dispute for settlement by sending a mail to the bureau with all the necessary documents and report number. Required steps will be taken by the authoritative body to rectify the same.
Rectification Company: One can also choose to hire the services of a credit rectification company who will do the needful on behalf of the applicant.
The credit bureau takes a minimum of 30 days to find out about the dispute and respond to the applicant in writing along with the results of the investigation. Any data that is provided by the applicant stating inaccuracy of the information will be sent to the actual information provider. The information provider will then have to verify and respond back to the credit bureau.
After the investigation is done, the credit bureau will help the applicant with the results, which will be along with a new copy of the credit report with all the required changes.