Fixing Credit Errors Can Be Frustrating Experience

We live in a credit society. You can buy concert tickets by phone with a credit card number, purchase gas by sliding a card through a magnetic slot, and even buy Arby’s roast-beef sandwiches in some areas with a credit card.

That’s why it is so impossibly frustrating when something goes wrong with your credit. Whether it is a mistake in your credit card bill, erroneous information in your credit report or improper denial of a loan application, it seems as if there is nothing you can do to fight the nameless bureaucracy behind the paper trail of computerized decisions.

It Takes Persistence

It does take a great deal of persistence and perseverance to fix even the most inconsequential mistake. You just can’t give up--after the first phone call or the fifth letter.

And it also helps if you know your legal rights. Here are some you should keep in mind.

It is illegal for creditors to discriminate in providing credit against a woman or an unmarried person. Federal law says you cannot be denied credit or be given credit on less favorable terms simply because you are a woman or not married.

If you think you have been discriminated against, contact the Attorney General’s office or the local district attorney. You may also retain a lawyer to file a lawsuit and seek actual damages, punitive damages and attorney’s fees.

If you have been denied credit, had your credit revoked or seen a change in credit terms, you are entitled to know why. You can request within 60 days a statement of the reasons, and the creditor has 30 days to respond.

If you think that your credit report contains incorrect information, you have a legal right to challenge it. First, request a copy of the report. Then notify the credit bureau of any information you think is incorrect. The credit bureau is required by California law to investigate your complaint, unless it believes that the dispute is frivolous or irrelevant, in which case you must be told that is how your complaint is being viewed (and you can file a written response, which must be added to your file).

Once the credit bureau has investigated, any information that is inaccurate or cannot be verified must be fixed or deleted.

If you and the credit bureau continue to disagree, you can file a brief statement (100 words or less) of the nature of the dispute, which must be incorporated in your file.

Upon your request, the corrected file, or the one with your statement of dispute, must be sent to anyone who received the erroneous file within the past six months, or if distributed for employment purposes, within the last two years.

If you have a problem, contact the Federal Trade Commission or the Consumer Services Division of the California Department of Consumer Affairs--both are listed in the white pages of the phone directory.

Common Complaint

Finally, and perhaps the most common credit complaint--what to do if your credit card bill contains a mistake. Don’t pay the overcharge. Carefully follow the instructions in “Your Billing Rights Notice.” The credit card company is required by the federal Fair Credit Billing Act to give you such a notice.

In short, the instructions require you to send in a written complaint within 60 days after the bill is sent. (Write on a separate sheet of paper, not the bill itself.) The credit card company must acknowledge receipt of your complaint within 30 days and has 90 days to fix the mistake or explain why you are wrong.

Of course, that might just be the beginning of a long and frustrating road. Good luck.