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Credit Report Errors on the Rise: How to Protect Your Financial Future

Credit card debt continues to grow constantly in the United States. Although this is a serious problem, another one accumulates that is more or equally worrying: the increase in credit report errors.

Complaints to the Consumer Financial Protection Bureau (CFPB) about credit reporting errors have doubled in the past two years, according to a new analysis from Consumer Reports. Last year, Consumers filed nearly 645,000 such complaints, compared to about 308,000 in 2021.

Consumer advocacy groups Consumer Reports and WorkMoney, a nonprofit that helps increase incomes and reduce costs for everyday Americans, introduced a “Credit Check” project to encourage consumers to stay on top of their credit reportslook for errors in them, and report any errors they identify to the CFPB.

“We are trying to reduce the number of errors that people experience, because A credit report is key to a person’s financial future.“Ryan Reynolds, policy analyst on Consumer Reports’ financial equity team, told CBS MoneyWatch. “Determine whether or not you will get a loan, what the interest rate on the loan is, and whether or not you will get a job or an apartment.”

Common errors on credit reports include inaccurate personal informationsuch as name or address, or incorrect reporting of debts of a loan you have obtained.

These errors on credit reports can harm a person’s ability to have a healthy financial life, as they They are the first filter to be approved for credits, loans, mortgages and even to get better job opportunities..

The agencies point out that it is possible that the increase in reports of errors in credit reports It could be a sign that consumers are checking their reports more frequently. They also point out that the increase in the registration of these disparities is due to the detection of the automated systems of the credit reporting agencies with which they resolve disputes.

Since the Covid-19 pandemic, The three major credit bureaus (Equifax, Experian and TransUnion) have allowed consumers to check their reports once a week without being affected by visiting AnnualCreditReport.com.

If you detect any errors in your credit report, there are some actions you should take to correct them so that they do not affect your finances:

  • File a dispute with each of the major credit reporting agencies.
  • Include documentation such as statements or payment records when filing a dispute about a debt you have paid and that appears in a report.
  • Write a letter to explain the problem.
  • Make copies of the materials for your record and send them by certified mail.
  • If your dispute is not resolved, file a complaint with the CFPB.
  • Consider seeking the services of an attorney to sue for credit report errors.

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2024-02-15 20:46:28
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