Written by ESR news blog editor Thomas Ahearn
A North Las Vegas, Nevada man who is a first-time homebuyer applying for a mortgage with his wife was shocked to see his “credit score just going down” and discovered that millions of dollars of debt had been mistakenly added to his credit report. , according to a reporting from KTNV ABC Channel 13 Action News in Las Vegas, Nevada.
Mike Rader checked his credit file in March 2021 and “found a balance of nearly $16 million” and that “this other credit bureau is reporting nearly $28 million in that same account.” he told 13 Action News. “How do you figure out that you have $3,000 credit on a card and suddenly you owe between 16 and 28 million.”
Rader called his credit card company, but “they told him it was a problem with the credit bureaus”, so he called the credit bureaus and “they all said we only use the data provided to us by the bank”, then he was “working hard to solve a problem that someone else created for me, and it’s really unfair”, 13 Action News reported.
His credit report issue has been resolved, but he is still waiting for his credit rating to rebound, 13 Action News reported. “In many ways, I feel helpless. How do I manage a credit score when they can so easily make a mistake… The takeaway for me is that the best defense is to be hyper vigilant about monitoring one of these mistakes,” he said.
the Federal Trade Commission (FTC) offers consumers a sample letter to dispute errors in a credit report. Once the credit bureau receives the letter, the Fair Credit Reporting Act (FCRA) requires investigation within 30 days. If the problem is still unresolved, consumers have the right to take legal action, 13 Action News reported.
In March 2021, the three national consumer credit bureaus – Equifax, Experianand Transunion – announced they are extending free weekly credit reports to Americans for an additional year until April 20, 2022to help them manage their financial health during the current coronavirus (COVID-19) pandemic.
Under United States federal law, all consumers have the right to get a free credit report every 12 months from each of the three national consumer intelligence agencies. However, at the start of the COVID-19 pandemic, these agencies increased the frequency to weekly for a period of one year starting April 20, 2020.
Consumers should review all items that appear on their credit reports. If an error is identified, contact the credit reporting agency immediately to initiate a dispute of this information. Free weekly credit reports offered by Equifax, Experian and TransUnion are available at AnnualCreditReport.com at www.annualcreditreport.com.
Employment Screening Resources® (ESR) – a leading global background check provider that was ranked the number one background screening company by HRO Today in 2020 – provides credit reports for employment purposes that provide a profile of a job applicant’s financial background. To learn more about ESR, visit www.esrcheck.com.
NOTE: Employment Screening Resources® (ESR) does not provide or offer legal services or legal advice of any kind. All information on this website is for educational purposes only.
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