Checking your credit report at least once a year – and more often if you’re planning to apply for a major loan – is important. These regular checks will help you catch any errors that might affect your credit score. One thing to watch for is accounts that don’t belong to you but appear on your report. When you find an account that isn’t yours, how you handle it is critical. If the account has a high balance or a negative status, it can impact your credit score.
How did the incorrect account get on your credit report?
Sometimes, human error is the reason incorrect accounts show up on your credit report. Someone may have swapped numbers in your Social Security number, or there may be someone with a similar name whose credit file has been mixed up with yours. Sometimes, these accounts are a result of fraud or identity theft; someone may have intentionally opened a credit card account in your name. This is especially likely if there are multiple accounts on your credit report that do not belong to you.
How to remove incorrect accounts
Fortunately, there is a relatively straightforward process to clear your credit report of accounts that do not belong to you. Sometimes, the process works the first time, but in other cases, you may have to repeat the process or take further action to fully clean your credit report. You can closely monitor your credit score using a credit monitoring service so you can catch any errors earlier instead.
Start by requesting your credit reports from the three major credit bureaus – Equifax, Experian, and TransUnion. If you’ve already requested one report, obtain the other two to see if they contain fraudulent accounts as well. Dispute the account with the company that listed the account on your credit report. You will want to close the account to prevent any future bills from being charged to the account in your name. Flagging the account as fraudulent will help get it removed from your credit report. Dispute the account with the credit bureau (or bureaus) that has the account on your credit report. You can do this online, by phone, or by mail. Sending the dispute by mail (certified) gives you a record that could be useful if the credit bureau does not resolve the dispute in your favor. Credit bureaus are legally required to investigate your request within 30 days, as long as it is not frivolous. Federal law gives you the right to sue a credit bureau that does not comply with the law. If you have any evidence supporting your request, you can send it via mail, fax, or upload it. Be sure to send a copy and not the original documents.
Ideally, the investigations conducted by the credit bureau will work in your favor, and the account will be removed from your credit report. You can add a fraud alert to your credit report if you believe identity theft was the cause and there is a chance that the thief could open more accounts in your name. Another additional step would be to place a “freeze” on your credit report, making it harder to open any additional fraudulent accounts in your name. The Federal Trade Commission (FTC) provides an online guide that makes it easy to create a freeze on your credit report.
What to do if the account is not removed
If your dispute attempt was unsuccessful, it is likely that the company confirmed to the credit bureau that the account belongs to you. The next best step is to work with the company to prove that the account is fraudulent. Speak with a manager, supervisor, or even a vice president or president at the company, and provide evidence showing that the account does not belong to you.
Filing a complaint with the Consumer Financial Protection Bureau (CFPB) may help flag the account as fraudulent and remove it from your credit report. Although the CFPB cannot force the company to take any action in your favor, having a government agency involved may motivate the credit bureau and the reporting company to thoroughly verify your account. Companies that have a record of complaints can face penalties from the CFPB.
You have the right to sue the credit bureau that does not remove a fraudulent account from your credit report after it has been proven not to be yours. For this reason, it is important to keep copies of all your correspondence with the credit bureau. If nothing else works, contact a consumer rights attorney practicing in your state to discuss suing the credit bureau for damages under the Fair Credit Reporting Act.
Source: https://www.thebalancemoney.com/an-account-on-my-credit-report-isn-t-mine-960733
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