Credit Report Error Attorney Orange County, NY
Credit reports errors happen on a regular basis. Because of this reality, federal law provides powerful resources to consumers harmed by credit report errors. The United States credit reporting system is designed to inform creditors about the worthiness of potential borrowers. Credit reports are used to provide a history of consumers’ past use of credit, including their track record of making payments.
Grave Consequences of Errors in Credit Reports
Inaccuracies in your report can lead to disastrous results in your livelihood due to the significant reliance placed on credit reports by businesses and lenders. This can prevent you from accessing credit for critical purchases such obtaining a mortgage to purchase a home or financing for an automobile. Even though credit report errors are common, many individuals are not aware that the law allows them to have their false information corrected, and possibly receive compensation for the incident. In many cases, consumers will not even be responsible for attorney’s fees as part of a lawsuit.
Consumer Reporting Agencies
Experian, Equifax, and TransUnion are the three elite consumer reporting agencies. These agencies are the best in the United States. It’s their job to compile information about a consumer’s payment history distributed from credit card companies, auto lenders, and other creditors.
Specialty Consumer Reporting Agencies
Professional consumer reporting agencies provide background screening and information on certain types of transactions made by consumers. This includes opening or using bank accounts, criminal history including arrests and convictions, residential rental payment history, bouncing checks, making automobile insurance claims, utility payments, and using payday lending. Consumer reporting agencies may also specialize in medical record information and employment.
How Credit Reporting Bureaus Arrive at Credit Scores
In order to go through the process of going through your payment history, credit reporting bureaus have to use complex algorithms to analyze the information. Lenders use that score to decide whether to extend credit and how much to charge, in the form of interest. Incorrect information in the reports can result in unfairly damaging an individual’s creditworthiness.