Q. I have paid off a mortgage. The bank reported to the credit bureaus that the mortgage had been paid off, but by mistake they also reported that I had opened a new mortgage. As a result, my credit rating with Experian has dropped by 30 points. I immediately contacted the bank and Experian. The bank corrected the error by stating that the new mortgage has been paid off even though there is no new mortgage. Experian said the case is now closed but the rating has not changed. After many calls to Experian, they first suggested that I wait for a cycle until the system reboots. Nothing has changed. The next time I called they told me there was no way for them to fix it as everything was done “within the system”. What can I do?
A. Consumers have rights when it comes to credit report errors, which are all too common.
According to a recent Consumer Reports report, more than a third of Americans have found at least one error on their credit report.
These mistakes are important to correct, said Jeanne Kane, certified financial planner at JFL Total Wealth Management in Boonton.
She said negative information, such as a reported, missed, or late payment can impact your credit score for about 7 years.
You have protections.
The Fair Credit Reporting Act (FCRA) was created to give consumers the ability to review their credit reports annually as well as dispute incorrect information in their report, Kane said.
You must file another dispute with the agency, even if they have indicated that the case is closed.
If he does not accept it, you can file a complaint with the Consumer Financial Protection Bureau.
You can learn more about filing disputes with the Federal Trade Commission (FTC).
Email your questions to [email protected].
Karin Price Mueller writes on Bamboo column for NJ Advance Media and is the founder of NJMoneyHelp.com. Follow NJMoneyHelp on Twitter @NJMoneyHelp. Find NJMoneyHelp on Facebook. Register for NJMoneyHelp.com‘s weekly electronic newsletter.