The Federal Trade Commission (FTC) on January 21, 2015 released its latest study on the 3 major credit reporting agencies (Experian, Equifax, Transunion). The study contains results about credit report errors. This was a follow up to a study issued in 2012 which discovered that, “that one in five consumers had an error that was corrected by a credit reporting agency (CRA) after it was disputed on at least one of their three credit reports. The study also found that about 20 percent of consumers who identified errors on one of their three major credit reports experienced an increase in their credit score that resulted in a decrease in their credit risk tier, making them more likely to be offered a lower auto loan interest rate.”
The follow-up study which surveyed consumers that had disputed one or more items on their credit report found that, “31 percent stated that they now accepted the original disputed information on their reports as correct. However, nearly 70 percent continue to believe that at least some of the disputed information is inaccurate. 45 percent said they plan to continue their dispute, and 50 percent plan to abandon their dispute, while others are undecided.
This latest study “also examined whether consumers from the 2012 study who had their credit reports modified after disputing information on their credit reports had any of the negative information that had been removed subsequently reappear on their reports”.
The study found that in only about 1 percent of the cases did an item such as credit report errors reappear after it had been removed.
The Commission issuing the study, “recommends that CRAs (Credit Reporting Agencies) review and improve the process they use to notify consumers about the results of dispute investigations, and that CRAs continue to explore efforts to educate consumers regarding their rights to review their credit reports and dispute inaccurate information such as credit report errors.
You can view the full study results here.
For information on how you can dispute credit report errors and derogatory items on your credit report contact us at: (619) 492-3040 or (727) 222-0120
Or, visit us at www.eracreditservices.com