If you've ever paid bills late, or disputed a bill
and refused to pay it, you may be concerned that your credit has been damaged.
Indeed, collectors often make vague (and sometimes explicit threats) about what
they may do to your credit if you do not give them what they want.
Often we hear from consumers that they pay bills they
do not feel they owe, just to avoid having their "credit ruined." This
is a shame, because the fact is that there is a lot you can do to maintain your
credit, even in the face of problems.
There are three major credit-reporting agencies in
the United States: Experian (888-397-3742), Trans Union (800-888-4213) and
Equifax (800-997-2493). These are the companies that collect information on your
credit history and provide it to lenders or prospective employers. However, they
all operate under government regulation. You have some control over what they
do.
First, no vendor can report nor threaten to report
your failure to pay a disputed charge to any credit reporting agency until they
have investigated your claim and notified you of the amount of time you have to
pay the amount due before incurring further charges.
If you still do not pay the bill after they report to
you, the creditor may report you to a credit-reporting agency, but must inform
you of the agency to which it has sent this information. Also, of you continue
to dispute the bill, the creditor must report that fact to the agency, and must
correct any information given to the agency if the bill is subsequently
resolved.
The agency must include the fact that the bill is
under dispute. In addition it is obligated to provide you with one free copy of
your credit report each year — if you request it. You must also be given a free
copy of your credit report if you are denied credit because of its contents.
If you have any doubts about your credit report, it
is a good idea to get a copy and check it carefully. If you find anything on
your file that you believe to be inaccurate or incomplete, you should notify the
agency in writing and they must investigate the dispute within thirty days
unless they have specific reason to believe that the dispute is frivolous or
irrelevant.
If they do investigate the dispute and find that
information is no longer accurate or cannot be verified, they have three
business days to remove it. If the investigation fails to resolve the dispute,
you may submit a statement of no more than 100 words describing the dispute and
the credit reporting agency must include a copy of that statement with any
credit report it may issue on you.
We would be happy to send you a free booklet with all
of this information and lots more. Just call us at the number below and ask for
a copy of "the Attorney General's Consumer Guide to Credit."