Ask Jean: “There is an inactive debt on my credit report that isn’t mine. How can I have it removed?”

Twice a week, our CEO and resident money guru Jean Chatzky tackles your burning questions in the HerMoney newsletter. We’ve pulled some of the best to feature on our website — and this one made the cut! Got a question for Jean? Send it her way right here. 

Q: Today’s question comes from Sharon. She writes: There is an inactive debt on my credit report that isn’t mine. How can I have it removed?

A: Errors on your credit report can negatively impact your credit score and be linked to serious matters, like identity theft. So, you’re going to want to address the debt on your credit report that isn’t yours, STAT. Here’s what you need to do:

1. Prepare a letter, addressed to the credit bureaus where the error appears, explaining the situation. (Make sure you’ve checked all three of your credit reports — from Experian, Equifax and TransUnion via annualcreditreport.com. Sometimes they have different information. Only contact the ones that have the error.) You’ll also want to make copies of supporting documentation, for example, a copy of your checking account statement showing a payment coming out (make sure any sensitive information is blacked out, though). Then, send the letters and supporting documentation by registered mail. Once they’ve been delivered, the credit bureaus will have 30 days to respond (but will typically get back to you within 10).

2. If they respond and say they aren’t correcting the error on your report, you can try again. If you get to this point, Lisa Gill, an expert in credit scores and reports for Consumer Reports, advises trying to find different evidence and preparing a new letter.

3. If a second letter and additional supporting documentation don’t work, you’ll have to take it to the next level. “Your next step is to go to the Consumer Financial Protection Bureau (CFPB), which is a government agency that takes consumer complaints,” Gill says.

4. If the CFPB cannot resolve the issue, and you still feel you’re right, you have the right to sue under federal law. According to Gill, a large number of attorneys specialize in this area, and it’s not as expensive as you might think. “If you have a legitimate claim and it’s ruled in your favor, the company will actually have to cover your legal costs,” she adds.

For readers who haven’t been in your shoes, your situation highlights the importance of regularly reviewing your credit report. Learn how to access yours and how to read it here.

MORE ON HERMONEY:

• Debt Relief Programs Explained: What They Are And How They Work
• Ask Jean: Should I Use My Tax Refund To Build Savings, Or Chip Away At Credit Card Debt?
• A Smarter Way to Think About Credit Card Fees, Perks, And Points With Your Rich BFF, Vivian Tu

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