The Annoyance of an Inaccurate & Recurring Debt


Recently we have seen an increase in consumers complaining about previously corrected data being reported on credit reports, particularly when car loans/leases are paid off early. Inaccurate and recurring debt can prevent consumers from purchasing homes or impact their credit scores. If this is happening to you, follow these instructions.

How to Handle an Inaccurate Recurring Debt

Under the Fair Credit Reporting Act (FCRA), the federal statute that was enacted to promote accuracy, fairness, and privacy of consumer information contained in the files of the credit reporting agencies, there are specific procedures a credit reporting agency must follow before reinserting negative information that had previously been removed from your credit report following a dispute.

The only way a credit reporting agency can reinsert information on your credit report is by certifying that the information is, in fact, true and 100% accurate. They are also required to send the consumer a written notice within five business days that the information has been reinserted and provide contact information for the company that furnished the information.

How to Dispute Inaccurate Information

Under the Fair Credit Reporting Act, the only way you can file a lawsuit under the FCRA is to dispute the claim with a consumer reporting agency (such as Equifax, TransUnion, or Experian). You can dispute a claim online through their websites, but the online disputes do not really provide you with an opportunity to give a full and complete explanation of the problem nor do they generally allow you to submit documentation. Keep copies of whatever you submit, even if it’s the online form.

The consumer reporting agency is then required to provide the information that you give to them to the creditor who has reported the debt. That creditor must investigate the dispute reasonably and report any inaccuracies. The credit reporters will then provide you with information regarding the investigation and, hopefully, they will correct the inaccuracy. If they fail to fix the problem then, and only then, can you file a claim against the creditor for placing inaccurate or misleading information on your credit report.

If you have filed a dispute with Equifax, TransUnion, Experian, or some other consumer reporting agency and they have refused to fix the incorrect information on your credit report, we may be able to help you. Our firm handles Fair Credit Reporting Act cases on a contingency basis, meaning no attorney fees are owed unless we recover compensation for you. Maginnis Law handles FCRA cases all over North Carolina.

If you have any questions regarding this blog post or want to speak with one of firm’s consumer law attorneys, feel free to call our firm at (919) 526-0405, by email at, or through our contact page. You can also subscribe to our mailing list to learn about the rights you have under consumer protection law against large corporations.