Problems with Credit Reporting Agencies
- The credit reporting agencies have been known to make errors. If your name is similar to another person's, the credit reporting agency may mix up your credit files. A person with the name "James Taylor" and another with the name "James Taylor Jr." can easily have their credit files intermingled. Another problem can arise even after the error has been corrected. Sometimes the reporting error happens again and again.
- If you pay off a judgment or collection account and it remains on your credit file after the seven years has expired, it may be difficult to have the item removed. Numerous attempts are sometimes needed to get the credit reporting agency's attention. The credit reporting agency has two codes which are designated for disputes. The two common designations are: someone indicates an account is not theirs and a customer states that the account is closed. If disputes fall outside of these categories, it can take time to resolve these issues.
- If you need to speak with a representative at one of the credit reporting agencies, it will be difficult at best. You can call a toll-free number, but there is a good chance that you will not be able to speak with a representative. A pre-recorded message will provide you with information you may need, and sometimes you can be re-routed and transferred from department to department without getting your issue resolved.
- Sometimes you may have to bring legal action against a credit reporting agency to get information on your credit file corrected. This can be time consuming as well as costly. There could be mountains of paperwork and documentation you will need to prove your claim. Only bring legal action against a credit reporting agency as a last resort.
- Negative information on your credit file can cost you a job. When you find out about the derogatory information, it may be too late to save a job offer. Having negative information which is not yours reported on your credit file will increase the likelihood that creditors will deny your credit application or charge you a higher rate of interest plus fees. Negative information impacts your ability to rent a car or an apartment.
- Credit reporting agencies sell your personal information to credit card companies and insurance companies that offer pre-approved offers for credit and insurance products. A lot of people do not wish to receive this information, and they must opt out by going to the appropriate website, otherwise the offers will continue.