Credit Dispute Procedures

Sometimes the information contained in a Credit Bureau report may be false, and the consumer may want to initiate a credit dispute. There are certain procedures a consumer has to follow if they want to initiate a credit dispute.

The information the consumer may want to dispute could be as simple as correcting contact information to an erroneous debt that may not be theirs. Credit bureau reports contain consumer information, such as where they live, how often they pay their credit card bills, how many credit cards and loans they've applied for, and if they've filed for bankruptcy.

The Credit Bureaus sell this information to creditors, insurers, employers and other businesses in the form of a credit report. These entities use the report to evaluate the consumers credit worthiness. Other entities use the report to verify contact and other information. The credit bureaus are regulated by the Federal Fair Credit Reporting Act. The federal law lays out strict guidelines the credit agency bureaus must follow when reporting on consumer information.

If the credit agency bureaus report false information, they must provide a way for consumers to dispute the information. Information contained in the credit report can mean the difference between a consumer getting approved or being denied for credit. And, no one wants to receive a rejection letter on a credit card application or loan because of false information in a credit agency bureau report.  Sometimes the credit bureaus make mistakes. That is why consumers are advised to check their credit reports periodically to avoid credit denials.

Inaccurate information showing up on a consumer's credit report could be the result of identity theft. Consumers may request a copy of their credit report from each of the three major credit agency bureaus – Equifax, Experian and TransUnion – once a year. Under federal law, consumers are also eligible for a free credit report anytime their application for credit, insurance, or employment is denied.

What type of errors warrant a credit dispute?

Under the Fair Credit Reporting Act, when a consumer initiates a credit dispute, the credit agency bureau and information provider (the person, company, or organization providing information about consumers to the credit reporting company) are required to correct the erroneous or incomplete information in the consumer's credit report.

To initiate a credit dispute with a credit agency bureau, the consumer must submit the request in writing and detail the information they think is incorrect. The consumer must provide back up documentation during the credit dispute to prove that the information is inaccurate.

For more information on the credit dispute process, consumers can contact any of the three major credit report agencies. Consumers that have questions regarding debt related issues, can contact NCO Financial Systems, Inc. Contact information for NCO Financial Systems, Inc. can be found on every page of our  consumer help unit website.

We are required under state and federal law to notify consumers of the following rights. This list does not contain a complete list of the rights consumers have under state and Federal law. Please click this link for important information about your rights. State and Federal Disclosure Link.