Your credit report can have a major impact on your financial life. Incorrect information can affect your ability to obtain a mortgage, finance a vehicle, rent an apartment, obtain a credit card, or qualify for favorable interest rates.

Fortunately, consumers in Wisconsin have important rights when their credit reports contain inaccurate information. Federal law gives consumers the ability to dispute errors, and in certain circumstances, legal remedies may be available when inaccurate information is not properly investigated or corrected.\

This article is for informational purposes only and does not constitute legal advice. Reading it does not create an attorney-client relationship. For guidance specific to your situation, consult a licensed Wisconsin attorney.

What Types of Errors Can Appear on a Credit Report?

Credit reporting errors can take many forms. Common examples include:

• Accounts that do not belong to you.
• Incorrect account balances.
• Duplicate accounts.
• Payments incorrectly reported as late.
• Accounts resulting from identity theft.
• Incorrect dates or account information.
• Debts reported by the wrong company.
• Personal information that does not belong to you.
• Accounts that are too old to continue being reported.

Even information that seems like a minor mistake can affect your credit profile.

Why Is Wrong Information a Serious Problem?

Credit reports are frequently used by businesses to evaluate consumers.

Incorrect information may contribute to:

• Loan denials.
• Higher interest rates.
• Difficulty obtaining housing.
• Problems financing a vehicle.
• Credit card denials.
• Other financial disadvantages.

For consumers trying to improve their financial situation, inaccurate reporting can make an already difficult situation even harder.

Your Rights Under the Fair Credit Reporting Act

The federal Fair Credit Reporting Act (FCRA) provides important protections concerning the accuracy of consumer reports.

Among other rights, consumers generally have the ability to:

• Obtain copies of their credit reports.
• Dispute inaccurate information.
• Have disputed information investigated.
• Receive the results of a credit reporting investigation.
• Seek legal remedies when applicable requirements are violated.

The FCRA applies to credit reporting agencies as well as companies that provide information to those agencies.

Start by Reviewing Your Credit Reports

The first step is identifying exactly what information is wrong.

Review your credit reports for:

• Accounts you do not recognize.
• Incorrect balances.
• Incorrect payment histories.
• Duplicate accounts.
• Incorrect personal information.
• Accounts associated with identity theft.
• Outdated negative information.

It is often helpful to compare the information on your credit report with your account statements and other financial records.

Submit a Credit Report Dispute

Once you identify an error, you can dispute it with the credit reporting agency.

A dispute should clearly explain:

• What information is incorrect.
• Why it is inaccurate.
• What you believe the correct information should be.
• What correction or deletion you are requesting.

Supporting documents can be helpful when they demonstrate why the information is inaccurate.

Keep copies of your dispute and all documents you submit.

Consider Disputing the Information With the Company That Reported It

Consumers may also have the ability to dispute inaccurate information directly with the company that furnished the information to the credit reporting agency.

For example, if a credit card company is reporting an incorrect balance, the dispute may be directed to both the credit reporting agency and the company reporting the account.

This can create another opportunity for the inaccurate information to be reviewed and corrected.

Keep Detailed Records

Documentation can become extremely important if the problem continues.

Keep copies of:

• Credit reports.
• Dispute letters.
• Supporting documents.
• Investigation results.
• Account statements.
• Emails and other correspondence.
• Records of communications with creditors.

A detailed timeline showing when you discovered the error, disputed it, and received responses can be especially useful.

What Happens After You File a Dispute?

The credit reporting agency generally must investigate a properly submitted dispute and provide the results.

Depending on the investigation, the disputed information may be:

• Corrected.
• Deleted.
• Updated.
• Determined to be accurate and left unchanged.

If the information remains despite evidence that it is inaccurate, additional steps may be available.

What If the Credit Bureau Does Not Fix the Error?

A credit bureau's failure to correct inaccurate information does not necessarily mean you have no options.

Further action may be appropriate when:

• The investigation was not reasonable.
• The wrong information continues to be reported.
• The bureau failed to properly consider the evidence.
• A creditor continues furnishing inaccurate information.
• The reporting has caused financial or other legally compensable harm.

The specific facts of the dispute matter when determining whether a legal claim exists.

Can You Sue Over Credit Reporting Errors?

In certain circumstances, consumers may have the right to pursue a lawsuit under the FCRA.

Potential claims can arise when a credit reporting agency or information furnisher fails to comply with legal requirements concerning inaccurate information or dispute investigations.

Depending on the circumstances, available remedies may include damages and, in qualifying cases, attorney's fees and costs.

A consumer protection attorney can review the history of the dispute and determine whether litigation may be appropriate.

What If the Wrong Information Is From Identity Theft?

Identity theft can create particularly serious credit reporting problems.

A consumer may discover accounts or collection debts that were opened without authorization.

Identity theft-related issues may require additional documentation and specific procedures. Consumers should carefully review their credit reports for other fraudulent accounts and preserve records relating to the identity theft.

How a Wisconsin Consumer Protection Attorney Can Help

A consumer protection attorney can help determine whether the reporting problem is simply an error that can be corrected through the ordinary dispute process or whether additional legal action may be appropriate.

An attorney may:

• Review your credit reports.
• Examine your prior disputes.
• Review responses from credit bureaus and creditors.
• Identify potential FCRA violations.
• Help gather supporting evidence.
• Communicate with credit reporting agencies or furnishers.
• Pursue legal action when appropriate.

An attorney can also help determine whether other Wisconsin or federal consumer protection laws may apply.

Why You Should Take Action Quickly

Credit reporting errors can continue affecting you as long as they remain on your credit report.

The sooner an error is identified and addressed, the sooner you may be able to protect yourself from further financial consequences.

Prompt action is particularly important when you are:

• Applying for a mortgage.
• Financing a vehicle.
• Trying to rent a home.
• Applying for credit.
• Dealing with an account resulting from identity theft.

Conclusion

Wrong information on your credit report can have significant financial consequences, but Wisconsin consumers have legal protections that allow them to challenge inaccurate reporting.

Start by obtaining and carefully reviewing your credit reports, identify the specific errors, and submit properly documented disputes. Keep detailed records of the entire process. When inaccurate information remains despite your efforts to correct it, a consumer protection attorney can evaluate whether additional legal remedies may be available.

Taking action can help protect your credit history and prevent inaccurate information from continuing to affect your financial future.

Attorney Nathan DeLadurantey offers free consultations to explain your legal rights in Wisconsin. Free consultations can be scheduled online.