Austin credit repair- 3 frequent credit reporting errors
It is estimated that as many as 80% of credit reports contain errors in them that may contribute to a reduction in points on your credit report. Credit repair may be the solution…
There are many different types of credit reporting errors on credit reports, most people do not imagine that as many as 80% of credit reports have been proven to have some sort of noteworthy errors on them. Why do these errors pop up and what are the top 3 most common? Here are the top 3 errors that we see on a daily basis.
1. Reaging of obsolete debts (aka- Date Fraud) – There is a statute of limitations (SOL) on all debts except student loans- these limitations are set from what is known on your credit report as the “Date of Last Activity” or DLA- the DLA determines the date from which the SOL clock begins to tock- in Texas the SOL is 4 years for example for suing and 7 years for reporting, the problem/errors come about however when collection agencies purposely go in and change the dates ILLEGALLY under the FDCPA and FCRA so that your account never goes away. NCO collection agency was caught doing this (and they still do, trust me) and were fined as a result of their actions as seen in this FTC publication HERE. This is something that many collectors are doing all the time- if they are fined it is simply the cost of doing business, a 1.5 million dollar slap on the hand is nothing compared to the billions they bring in as a result of these violations.
2. Mixed Files – If your name is John Smith chances are you have probably realized there are many others with the same name, what you may not realize however is how likely it is for your information to be mixed with someone else on your credit report. The real kicker is the fact that you do not necessarily have to have a common name, in instances where two consumers have similar names, social security numbers, addresses, or birth dates there is a higher probability of the information mixing and thus potentially ruining an unsuspecting person’s credit report.
3. Furnisher Errors – Collection agencies sell their debt portfolios back and forth all the time- sometimes the information that is entered into their database is entered with thousands of other names and is often simply used with a spreadsheet- if the information is entered wrong into the spreadsheet it is also going to be reported incorrectly on a credit report too, this is another reason why information appears incorrect and can negatively impact a credit score when in reality these errors should not appear due to standards set forth by the FCRA.
If you feel that you may be one of the 80% of consumers that may have a potentially serious error on their credit reports, we are here to assist you in correcting this information. Schedule a free analysis of your credit file with a Certified FICO Professional by clicking HERE.