Study: 1 in 4 consumers had error in credit report
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WASHINGTON (AP) - One in four consumers found an error in a credit report issued by a major agency, according to a government study released Monday.
The Federal Trade Commission study also said that 5 percent of the consumers identified errors in their reports that could lead to them paying more for mortgages, auto loans or other financial products.
The study looked at reports for 1,001 consumers issued by the three major agencies - Equifax, Experian and TransUnion. The FTC hired researchers to help consumers identify potential errors.
The study closely matches the results of a yearlong investigation by The Columbus Dispatch. The Ohio newspaper's report last year said that thousands of consumers were denied loans because of errors on their credit reports.
The FTC says the findings underline the importance of consumers checking their credit reports.
Consumers are entitled to a free copy of their credit report each year from each of the three reporting agencies.
The FTC study also found that 20 percent of consumers had an error that was corrected by a reporting agency after the consumer disputed it. About 10 percent of consumers had their credit score changed after a reporting agency corrected errors in their reports.
The Consumer Data Industry Association, which represents the credit reporting agencies and other data companies, said the FTC study showed that the proportion of credit reports with errors that could increase the rates consumers would pay was small.
The study confirmed "that credit reports are highly accurate, and play a critical role in facilitating access to fair and affordable consumer credit," the association said in a statement.
The new U.S. Consumer Financial Protection Bureau has the authority to write and enforce rules for the credit reporting industry. In September the agency began ongoing monitoring of the credit agencies' compliance. It's the first time they have faced such close federal oversight.
The CFPB hasn't yet taken any public action against the agencies. However, it is accepting complaints from consumers who discover incorrect information on their reports or have trouble getting mistakes corrected. The agencies have 15 days to respond to the complaints with a plan for fixing the problem; consumers can dispute that response.
By contrast, the FTC can only take action if there is an earlier indication of wrongdoing. It cannot demand information from or investigate companies that appear to be following the law.
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AP Business Writer Daniel Wagner contributed to this report.
The Federal Trade Commission study also said that 5 percent of the consumers identified errors in their reports that could lead to them paying more for mortgages, auto loans or other financial products.
The study looked at reports for 1,001 consumers issued by the three major agencies - Equifax, Experian and TransUnion. The FTC hired researchers to help consumers identify potential errors.
The study closely matches the results of a yearlong investigation by The Columbus Dispatch. The Ohio newspaper's report last year said that thousands of consumers were denied loans because of errors on their credit reports.
The FTC says the findings underline the importance of consumers checking their credit reports.
Consumers are entitled to a free copy of their credit report each year from each of the three reporting agencies.
The FTC study also found that 20 percent of consumers had an error that was corrected by a reporting agency after the consumer disputed it. About 10 percent of consumers had their credit score changed after a reporting agency corrected errors in their reports.
The Consumer Data Industry Association, which represents the credit reporting agencies and other data companies, said the FTC study showed that the proportion of credit reports with errors that could increase the rates consumers would pay was small.
The study confirmed "that credit reports are highly accurate, and play a critical role in facilitating access to fair and affordable consumer credit," the association said in a statement.
The new U.S. Consumer Financial Protection Bureau has the authority to write and enforce rules for the credit reporting industry. In September the agency began ongoing monitoring of the credit agencies' compliance. It's the first time they have faced such close federal oversight.
The CFPB hasn't yet taken any public action against the agencies. However, it is accepting complaints from consumers who discover incorrect information on their reports or have trouble getting mistakes corrected. The agencies have 15 days to respond to the complaints with a plan for fixing the problem; consumers can dispute that response.
By contrast, the FTC can only take action if there is an earlier indication of wrongdoing. It cannot demand information from or investigate companies that appear to be following the law.
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AP Business Writer Daniel Wagner contributed to this report.
After watching the 60 Minute show on the credit score debacle I am wondering if a class action lawsuit against these three demigods might be in order. If as many people have faulty information on their reports got together and pulled them into federal court it might shake the tree hard enough to make them be more responsive to someone when they complain. Another move is banning any insurance company from using one's credit score as a gauge for setting ones rates for insurance. Since there is so much bad information on peoples scores it should not be used a a gauge to set ones rates. There are probably more things that can be done to force these agency's into acting more responsibly in correcting errors that they are now refusing to address.
 @LongBeachBum I would join  a class action.
BS Connie. Equifax is charging for the information. Get your facts straight before you get in front of the camera.
 @Excoastie She said to use "annualcreditreport.com" and that is free once a year.
I find it scary that a credit report controls our lives. It matters when buying insurance getting a job, why?
People worry about government intrusion when in fact these private sector companys are determimng how we live.
State Farm quoted me a rate for home insurance checked my credit score and quoted a higher rate. My score at the time was 720, considered good. I found this insulting.
Credit score do not tell a complete story of one's responsibility and the idea they can screw it up and it may cost you to fix thier mistake is beyond unfair.
I can't find no justifaction for an employer to know your credit score or an insurance company setting rates according to your score.
I have found more issues with the private sector invading my privacy more than the government. You can petition the government, try petitioning the banks when your a victim of identity theft.
Congress should take up this battle for the American people.
Here are some resources for truly FREE credit reports, scores and info.
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First - DO NOT GO TO FREECREDITREPORT.COM It is not free.
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www.quizzle.com - this is run by Quicken. You get a free credit report every six months and an estimated FICO score. My experience is the score they show is a bit lower than the real FICO score. You can simulations on how to improve your credit. They use the Experian credit bureau and of the three sites that give you a single view from one bureau - they do it the best by far in putting it into plain English.
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www.creditkarma.com - you can get access to your credit report - FREE - along with your FICO score. Credit Karma also gives you your Vantage Score and your auto insurance score (subset of CLUE). It updates the scores whenever you want, free, charts it on a graph, analysis, and provides an update each time you update of any changes on your credit report. I feel this is the best free one out there. They get their information from TransUnion.
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www.creditsesame.com - another site that will give you a free FICO score and analysis of your credit. This pulls from a single credit bureau - Experian
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www.annualcreditreport.com/cra/index.jsp is the official website where you can get your credit reports from all three bureaus. However these sites will not give you a FICO score. Also, when you click through each one and are taken to the different bureaus, two of the three (can't remember which two) will try to sell you added services. NO NO NO. One of them will promise to show you all three credit scores if you just pay a fee. What they show you is your Vantage Scores, which are pretty useless as they are barely used. Just get your free reports.
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Last - DO NOT GO TO FREECREDITREPORT.COM! It is not free.
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Hope this helps.
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One last suggestion. If you want to get your finances in order you only need to know one website. Mint.com. They also have a Mint iPad and iPhone app - it is run by Intuit (Turbo Tax and Quicken folks). Mint.com is probably the best resource out there for wrapping your hands around your personal finances and rolling up EVERYTHING into a single dashboard view.
 @Howard Beale Wow! That was fantastic and thorough. I really appreciate the time it took you to do that. I am DEFINITELY going to check these out. THANKS!
The link is there now, sixth paragraph.
I am also looking for the link Connie said was here.Â
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Your report on Monday evening missed the larger problem. As shown in the 60 minutes program, the 3 major credit agencies are very seldom able or willing to make corrections to errors in credit reports. Most credit errors are "offloaded' to agents in foreign countries that are unable to make the needed corrections.Â
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Connie said the links to get your FREE credit report would be here. I don't see it.
Frustrating.
I have spent years attempting to get the big 3 to correct errors on our reports but it's gone nowhere.Â
 @takncarabizniz Exactly! I got the ultimate run around. Worst I've ever had I think. And I'm tenacious. I finally gave up.
60 Minutes had a segment on this last night. It was pretty scary.
Had it happen to us. Years after we paid a truck off, which we no longer even owned, the payment still showed up on our report from Bank of America. Had a LOT of fun trying to get it off. Numerous calls just to find out WHO to call. Then rotting on hold. Then writing letters. Then being told that was not how to do it and right back to the drawing board.
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The creditors want us to be diligent in making payments, but they obviously do not take the same care they expect of the consumer.
 @Thunder Why should they...they make more $$ off of bad credit. I had an issue with BoA in the past as well. Was not even my account, but they screwed up and put it on there, because of similar numbers. I proved it, got BoA to write a letter of correction and it was removed...only to return the next time I check my credit. Finally got an attorney involved and it hasn't reappeared again.
 @aintno1special Interesting that it was BoA for you too. Probably not a coincidence, more likely they have more problems than most. I hate to hear you had to get an attorney involved to get it done. We like to use our attorney judiciously, if you know what I mean ($325 an hr). It is still there as far as I know. I gave up as it really didn't affect us with the credit score we had. But we have not applied for anything in a long while.