Credit reporting agencies — Equifax, Experian, and TransUnion — maintain files on millions of consumers. Despite federal requirements under the Fair Credit Reporting Act (FCRA) to ensure maximum possible accuracy, errors remain widespread.
A 2021 study by the Federal Trade Commission found that one in five consumers had an error on at least one of their credit reports. These errors can have serious consequences.
Common Types of Credit Report Errors
Mixed Files. This occurs when the credit bureau merges your information with another person's data — often due to similar names, Social Security numbers, or addresses. You may see accounts, debts, or even bankruptcy filings that belong to someone else.
Identity Theft. Fraudsters open accounts in your name, run up charges, and disappear. Despite your dispute, the accounts may remain on your report for years.
Inaccurate Payment Histories. Creditors may report late payments that were actually made on time, or report accounts as charged off when they were settled.
Duplicate Accounts. The same debt appears multiple times, artificially inflating your total debt load.
How Errors Affect You
A lower credit score can mean higher interest rates on mortgages and auto loans, denial of rental applications, increased insurance premiums, and even lost job opportunities. Employers often pull credit reports for certain positions.
What You Can Do
If you find an error, dispute it with the credit bureau and the furnisher (the company that provided the information). Under the FCRA, they are required to investigate. If they fail to correct the error, you may have a claim for damages.
Horowitz Law PLLC represents consumers whose credit reports contain inaccuracies that credit bureaus and furnishers have failed to fix. If you have disputed an error and it remains uncorrected, contact the firm for a free case evaluation.