Most consumers of payday cash advances are advised to refer to their credit report before and after applying for a loan. This is important in order to track any credit reporting errors that may possibly hinder your lending opportunities. You can request for an investigation to correct these errors.
The Fair Credit Reporting Act or FCRA protects consumers against credit report errors, inaccuracies and other violations. During the early days of credit reporting, lenders and creditors provided reports in cryptic forms to credit bureaus. However, consumers were not allowed to see these reports and if they could, they could not be understood. This is why in 1970 a law was passed to address unfair practices of credit bureaus and creditors. Under the new law, consumers now have the right to see their credit reports and are allowed to dispute any incorrect information.
If you want to dispute any information on your credit report, report this immediately to the credit bureau that made the report or else this will remain on your credit history. Also, when you request an investigation on a credit report error, make sure that you are able to provide additional documentation to support your dispute. If you dispute an error without supporting documents, the credit bureaus have the right to refuse the investigation.
Consumers of payday cash advances should report any credit report errors because this is their right. In fact, the Fair Credit Reporting Act gives consumers the right to add a statement to their credit report. This is used to explain any errors or inaccuracies that will alarm credit bureaus. In case credit bureaus do not act despite a consumers constant requests, he has the right to file a complaint with an attorney general and report any unfair practices.
The federal law requires credit-reporting agencies to investigate any information of a credit report error and give the consumer updates and written findings. Within 30 days, the credit bureau should contact the responsible creditors about the credit report error. The creditor will also conduct their own investigation and notify the credit-reporting agency of their findings. When errors have been verified, the errors should be removed from the consumers credit report immediately. If the consumer is not satisfied with the results of the investigation on the credit report error that was found, he may file a lawsuit against the creditor who reported the inaccuracy.
So what credit report errors can be disputed by the consumer? All inaccurate negative information can be disputed by a consumer. It is also important that consumers know that these negative items will only be on your credit report for 7 years. Also, inconsistencies on reports from old accounts with charges, late fees, or any judgments can be disputed. Consumers should also know that late payments beyond 30 days are the only ones that will remain on your credit report for 7 years.
Check your credit report to ensure that any old charged off accounts, late fees, or judgment roll offs on your report are the correct amount. Only late payments that extend beyond 30 days can remain on your credit report. Also, each delinquent account reported on your credit score should reflect an accurate amount. Reference your old billing statements to ensure accuracy. If you are a victim of identity theft, you can dispute any unauthorized accounts opened in your name.