Creditor Errors in Pascagoula

The accuracy of a person’s credit report requires close coordination between two entities. The one upon which people most often focus is the credit reporting bureaus. In fact, the Fair Credit Reporting Act requires these entities to produce accurate credit reports and to take steps to fix any known errors.

However, just as common are errors that occur on the creditor side of the equation. These lenders provide raw data to the credit report companies that allow the agencies to formulate their reports. An error on the part of creditors makes it impossible for a credit agency to produce an accurate credit file. Speak to a skilled credit denial lawyer to learn about the common creditor errors in Pascagoula.

Reporting Inaccurate Data

Creditors play a vital role in the production of an accurate credit report. These creditors have an obligation to keep track of their customer accounts and to provide clear data to the credit reporting agencies. One way that creditors can fail in this duty is by not properly updating their customer ledgers. This could include the timing and status of payments.

If a consumer takes out a car loan, the financial company servicing that loan should keep track of how often the borrower makes payments. If a borrower makes a payment, but the lender fails to note that payment on its ledger, this will result in a poor mark on a credit report. Being able to prove payment is essential to filing a complaint with the credit reporting agencies to demand a fix. Creditor errors in Pascagoula often involve this negligence on the part of lenders.

Mistaken Identity

Just as creditors should take care to keep their customers’ payment records up to date, they must also be sure to properly identify their customers. One common credit reporting error is a merged credit report where a credit agency produces a report that combines the information of two customers. The reason why this can occur is that a lender does not take care to confirm a customer’s identifying information.

Information such as a birthday, previous addresses, social security numbers, and proper spelling of a name are all essential to creating proper credit reporting data. A company that fails to double-check this data may provide inaccurate reports to the credit reporting agencies. Consumers should be sure to check that their information is accurate on all loan documentation or payments to ensure that creditors do not make this common error in Pascagoula.

Understanding Creditor Errors in Pascagoula Could Help to Remedy Credit Reporting Problems

Creditors are one of the two sets of entities responsible for producing an accurate credit report. While the agencies produce the reports themselves, they rely on the receipt of accurate data from lenders and creditors to form these reports.

Creditors can fail in this responsibility in two main ways including failure to keep proper track of their customers’ payment history and failure to properly identify clients. This can result in erroneous delinquent marks or a lower credit score due to unused lines of credit. A mistaken name, birthdate, or address could lead to merged credit reports with other people who may have worse credit. In either event, identifying the source of an error can help in the process of demanding a fix with the credit reporting agencies. Call today to learn more about creditor errors in Pascagoula.