Mistakes Do Happen: A Look at Errors in Consumer Credit Reports

Mistakes Do Happen is an alarming report issued by the PIRG. Here are some key statistics:

• Twenty-five percent (25%) of the credit reports surveyed contained serious errors that could result in the denial of credit, such as false delinquencies or accounts that did not belong to the consumer;
  
• Fifty-four percent (54%) of the credit reports contained personal demographic information that was misspelled, long-outdated, belonged to a stranger, or was otherwise incorrect;
  
• Twenty-two percent (22%) of the credit reports listed the same mortgage or loan twice;
  
• Almost eight percent (8%) of the credit reports were missing major credit, loan, mortgage, or other consumer accounts that demonstrate the creditworthiness of the consumer;
  
• Thirty percent (30%) of the credit reports contained credit accounts that had been closed by the consumer but remained listed as open;
  
• Altogether, 79% of the credit reports surveyed contained either serious errors or other mistakes of some kind.
  
• Altogether, 79% of the credit reports surveyed contained either serious errors or other mistakes of some kind.

States have long taken the lead in protecting consumers’ privacy and ensuring the accuracy of credit reports. In 1992, Vermont was the first state to pass a law providing a free annual credit report on request, followed by Colorado, Georgia, Maine, Maryland, Massachusetts, and New Jersey. California adopted other comprehensive reforms in 1994 and later became the first state to require disclosure of credit scores.

Congress eventually followed the states’ lead, adopting some credit reporting reforms in 1996 and criminalizing identity theft in 1998. In December 2003, Congress passed the Fair and Accurate Credit Transactions Act (FACT Act). With the FACT Act, the financial industry won its primary goal: permanent preemption of stronger state credit and privacy laws. The FACT Act also included several modest consumer reforms, borrowing from state laws already enacted, including the right to a free annual credit report on request. Although these consumer reforms came at the unacceptable price of a state’s right to protect its consumers, the law includes a number of provisions designed to enhance the accuracy of credit reports.

What should policymakers do?
Despite recent federal action, we need to do more to protect consumers’ financial privacy and ensure the accuracy of credit reports. Policymakers should:

• Strengthen a consumer’s private right of action to seek redress through the courts when a credit bureau or a creditor fails to protect personal information or comply with an investigation.
  
• Limit or prohibit the use of a consumer’s Social Security number for transactions, credit applications, or on drivers’ licenses and other identification.
  
• Give consumers more control over who has access to their credit reports and when, better information about when their reports are accessed or when negative information is added to their reports, and the right to control the use of credit scores for insurance purposes.
  
• Give identity theft victims more power to easily clear their names.

How Long Do Negative Items Stay on Your Credit Report?

How Long Do Negative Items Stay on Your Credit Report?

The items on your credit report are called tradelines. They can either be
positive or negative.   Positive tradelines help your credit score and
negative tradelines lower your credit score.   Most negative items remain on
your credit report for 7  years from the date of first delinquency,  but
there are exceptions:

Delinquencies (30 - 180 days late) remain for 7 years from the date of the
initial missed payment.

Collection Accounts remain on your credit report for 7 years from the date
of the initial missed payment that led to the collection (the original
delinquency date). When a collection account is paid in full, it will be
marked "paid collection" on the credit report.

Charged Off  remain for 7 years from the date of the initial missed payment
that led to the charge off (the original delinquency date), even if payments
are later made on the charged-off account.

Closed accounts are accounts that are no longer available for further use.
Closed accounts may or may not have a zero balance. Closed accounts with
delinquencies remain 7 years from the date they are reported closed, whether closed by the creditor or by the consumer. Positive closed accounts remain at least 10 years.

Lost credit card - If there are no delinquencies, credit cards that are
reported lost will continue to be listed for 2 years from the date the card
is reported lost. Delinquent payments that occurred before the card was lost
are reported for seven years.

Bankruptcy- Chapters 7, 11, and 12 remain for 10 years from the filing date.
Chapter 13 remains 7 years from the filing date. Accounts included in
bankruptcy remain 7 years from the date they were reported as included in
the bankruptcy.

Judgments (child support, civil & small claims) remain on your report for 7
years from the date the judgment is filed.

Tax Liens -  (city, county, state, and federal) Unpaid tax liens remain 15
years from the filing date. Paid tax liens remain 7 years from the paid date
of the lien.

Inquiries remain on your credit report for 2 years, with those in the last 6
months usually given the most consideration.

Positive Accounts remain indefinitely and paid positive accounts remain 10
years.


The credit experts at The Credit Care Company know credit law and how to use
the laws to your advantage. The Credit Care Company works with you during the dispute process to achieve the best possible outcome in eliminating negative items that are impacting your credit life. Our credit experts will analyze your credit report to target for removal the inaccurate, misleading and unverifiable items. The good news is that the reporting system itself is flawed, 96.7% of negative items are on the report WRONG!
Don't become a victim to high interest rates and absurd fees.

Call The Credit Experts Today!