Narrator (00:00):
Welcome to Module 3: Disputing errors and submitting complaints. This module is part of a series called Helping Clients Monitor and Improve Their Credit Reports and Scores, from the Consumer Financial Protection Bureau.
Narrator (00:14):
This presentation is being made by a Consumer Financial Protection Bureau representative on behalf of the Bureau. It does not constitute legal interpretation, guidance, or advice of the Consumer Financial Protection Bureau. Any opinions or views stated by the presenter are the presenter's own, and may not represent the Bureau's views.
Narrator (00:35):
The Consumer Financial Protection Bureau is a 21st century agency that implements and enforces Federal consumer financial law, and ensures that markets for consumer financial products are fair, transparent, and competitive. CFPB FinEx is a place where financial educators, practitioners, counselors, researchers, and others can share information and best practices, learn from one another, advance their work, and see what CFPB is doing to help consumers.
Narrator (01:07):
Welcome to Module 3:, Disputing Errors and Submitting Complaints. This module is part of a series designed to help you, as a practitioner, partner with clients to help them monitor and improve their credit reports and scores. There are a total of four modules that will share the information you need to feel confident having conversations about credit with clients.
Narrator (01:29):
In Module 3, we will learn about disputing errors, identity theft, and credit monitoring, partner with clients who want assistance submitting a complaint, and explore more resources to help you in your role as a practitioner. We know you all work in a variety of settings. It is impossible to cover the variety of places and settings where you offer your skills. Today, we'll catch up with Maya, who we met in Modules 1 and 2.
Maya (01:56):
Nice to see you, again. In Module 1, I started working with clients on their credit goals after a family was denied an apartment. Then in Module 2, I learned more about how to help clients get credit reports and scores. A family I have been working with found an apartment. They ordered their credit reports by mail, because they need a car to get to and from work. When we reviewed their credit, there were some errors. The credit report had a collections account that didn't belong to the family. I went to work with the family to help them get this incorrect information removed from their credit report.
Narrator (02:33):
In Module 2, we looked at some common errors. There are several common errors you may see when working with clients, such as identity errors, like having an account belonging to another person, or errors made on a person's identity information. Incorrect reporting of account status can include accounts that are incorrectly reported as late or delinquent, or that have the incorrect dates. Data management errors. These may show up as accounts that appear multiple times with different creditors. And balance errors, like accounts with an incorrect current balance, or an incorrect credit limit.
Maya (03:08):
The family I am working with really needs a car to get to and from work. An adult in the family reviewed his credit and saw an identity error. A collections account that doesn't belong to him is listed on his credit report. I'm going to do some research about how he might be able to get this removed from his credit report.
Narrator (03:26):
Throughout this module, we will include the title of sources you can explore to learn more, or reference in the future.
Narrator (03:34):
To explore sources and learn more, go to www.consumerfinance.gov. Search for the title of the resource you're looking for. Be sure to explore all the other information and resources available to you on consumerfinance.gov.
Narrator (03:50):
A client that identifies an error in their report can dispute it with the credit reporting company, and/or the company the account is with that provided the information. The nationwide credit reporting companies can be contacted online, by mail, or by phone. If a person disputes an error by mail, they can choose to send their letter of dispute to credit reporting companies by certified mail, and ask for a return receipt so that they will have a record that their letter was received. Clients can also dispute errors with the company they have the account with by mail. "How do I dispute an error on my credit report?" has the most up to date addresses, phone numbers, and websites you'll need.
Narrator (04:33):
Knowledge check. A person can dispute errors on their credit report with both the credit reporting company, and the company that provided the incorrect information. True or false? If you said true, you are correct. An individual can dispute errors with both the credit reporting company, and the company that provided the incorrect information.
Narrator (04:56):
Each credit reporting company may have a slightly different dispute process. Generally, clients who want to dispute errors on their credit reports will need to share contact information, a credit report confirmation number, each mistake and why the information is wrong, and a request that the information be removed.
Maya (05:17):
I have been helping clients dispute errors on their reports. The client I am working with disputed the error on his credit report, and he is hoping once the incorrect information is removed he will be able to qualify for a car loan. I also found a video on how to dispute an error on a credit report. I'm going to text the link to clients that have questions about disputing errors. In working with other clients, sometimes they find out they have been victims of identity theft, and I want to point them in the right direction. Let's explore.
Maya (05:49):
Identity theft occurs when someone steals a person's identity to commit fraud. Stealing a person's identity could mean using personal information without their permission. This could be a person's name, social security number, credit card number. Identity thieves may rent apartments, get credit cards, or open other accounts in a person's name. A person may not find out about the theft right away. So, how can someone spot identity theft?
Narrator (06:19):
What do clients need to know to spot identity theft? They can keep an eye out for identity theft by reading statements from credit card companies, or banks and credit unions, and checking their credit reports for suspicious activity. They should be sure to look closely for charges that they did not make. Even a small charge can be a danger sign. Thieves sometimes will take a small amount from a checking account, and then return to take much more if the small debit goes unnoticed. Clients could also check their credit reports. If an identity thief is opening financial accounts in a person's name, these accounts may show up on a credit report. They can look for inquiries from companies they never contacted, accounts they didn't open, or wrong amounts on accounts.
Maya (07:05):
If clients think they have been a victim of identity theft, they can contact one of the nationwide credit reporting companies and place a fraud alert on their credit report. They can ask for a fraud alert that requires creditors who check a person's credit report to take steps to verify their identity before opening a new account, issuing an additional card, or increasing the credit limit on an existing account based on a consumer's request. A person only needs to contact one of the three major credit reporting companies, and they will notify the others. File an identity theft report with the federal trade commission on identitytheft.gov. I also learned that under the Fair Credit Reporting Act, credit reporting companies are required to block the reporting of information identified by the consumer as having resulted from identity theft. Credit reporting companies must do this no later than four business days after receiving the appropriate documentation from the consumer. Members of the military have an additional option available to them. Active duty alerts, which give service members protection while they're on active duty. Active duty alerts last for 12 months. When a person places an active duty alert on their credit report, creditors must take reasonable steps to make sure the person making the request is correct, before opening an account, issuing an additional credit card on an existing account, or increasing the credit limit on an existing account.
Narrator (08:34):
A credit monitoring service is a commercial service that charges a fee to watch a person's credit reports, and alert them to changes to the accounts listed on their credit report. Services usually alert a person to changes to their accounts by email, text message, or phone. Warning, prices and services vary widely. Some services cost over $15 a month. Before signing up for a service, it's important that consumers understand what they're getting into. This is particularly important if the person is offered free credit monitoring. Remember, using annualcreditreport.com, a person can check their own credit. It is free, and a person can plan to check their report from different credit reporting companies, at different times of the year, to ensure that they're keeping a close eye on their credit. A person can pick three significant dates during the year. These can be holidays, birthdays of loved ones, or other easy to remember dates.
Narrator (09:33):
Maya is working with a client who thinks they may have been the victim of identity theft. They made a report to the Federal Trade Commission, FTC, but also want a security freeze. Maya wants to do some research on security freezes.
Maya (09:49):
A person can freeze and unfreeze their credit record for free at the three nationwide credit reporting companies, Experian, TransUnion, and Equifax. A security freeze, also called a credit freeze, stops new creditors from accessing a person's credit file, and others from opening accounts in their name until the individual lifts the freeze. The federal law requiring free security freezes does not apply to someone who requests a person's credit report for employment, tenant screening, or insurance purposes. Unlike fraud alerts, if someone places a security freeze with one credit reporting company, they will not notify the other credit reporting companies. The person must contact each credit reporting company individually if they would like to place a security freeze with all three nationwide credit reporting companies. Be mindful that a freeze doesn't prevent identity thieves from taking over existing accounts. Sometimes, clients want to submit a complaint because a company, or credit reporting company has not fixed an error. Let's take a look at how to submit a complaint with the CFPB.
Narrator (10:55):
The family Maya has been working with is considering submitting a complaint. The family disputed the incorrect account with the credit reporting company. The information was not removed, even though they followed up. They might submit a complaint to the CFPB, but they want to know what happens next before they make their decision. Let's explore what Maya and the family learned.
Narrator (11:19):
When a person is having trouble with a financial product or service, the first step is to reach out to the company. For example, if someone is having trouble with a credit reporting company, they should contact that company first. If needed, a person can submit a complaint to the CFPB. The complaint goes through several steps that will help them get a response about their issue, and help the CFPB identify problems in the marketplace. The person will receive email updates, and can log in on the Bureau's website to track the status of their complaint.
Narrator (11:53):
The CFPB will forward the complaint, and any documents a person provides, to the company, and work to get a response from them. If the CFPB finds that another government agency would be better able to assist, they will forward the complaint to that agency.
Narrator (12:10):
Next, the company reviews the complaint and communicates as needed. The company also reports back about the steps taken, or that will be taken, on the issue identified in the complaint. Companies generally respond in 15 days. In some cases, the company will say their response is in progress and will provide a final response in 60 days.
Narrator (12:34):
The CFPB publishes information about complaints, such as the subject and date of the complaint, on their public consumer complaint database. With consent, the CFPB also publishes a description of what happened after taking steps to remove personal information.
Narrator (12:53):
The CFPB will let the person who made the complaint know when the company responds. The person will be able to review the company's response, and will have 60 days to provide feedback about the company's response.
Narrator (13:06):
Knowledge check. When a complaint is submitted, companies generally respond within 15 days. True or false? If you said true, you are correct. Companies generally respond within 15 days, even if it is to ask for more time.
Maya (13:26):
The family really needs a car loan, and the incorrect information on their report is preventing them from getting the best rate possible. They decide to submit a complaint with the CFPB. Since I just learned how to submit a complaint, I am ready to share that information with the family.
Maya (13:44):
Clients can submit a complaint online, or by phone, in more than 180 languages. Complaints help the CFPB's work to supervise companies, enforce federal consumer financial laws, and write better rules and regulations. Submitting a complaint also helps others. By coming to the CFPB, a person isn't just helping themselves. Complaints play a role in everything the CFPB does, helping them identify problems and prioritize their work.
Maya (14:16):
When a client wants to submit a complaint online, they will need facts about what happened in their own words, including important dates and amounts, documents they want to attach to support their complaint, the name of the company they are complaining about, an email address and mailing address where they can be contacted. Clients should include all the information they can because they generally can't submit a second complaint about the same problem. We learned a lot today, and the family submitted their complaint. Next time we will discuss common credit situations clients may face.
Narrator (14:51):
Want to learn more to partner with clients in their credit goals? Visit consumerfinance.gov. Check out the credit reports and scores resources page to explore key terms, how-to guides, and videos.
Narrator (15:05):
Our slides featured a variety of resources. Use the links to visit sources.
Narrator (15:23):
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Narrator (15:23):
To continue to learn more, join the CFPB FinEx community. You'll receive updates by email, and engage with a large network of practitioners. You can also access the LinkedIn discussion group for news, research, and best practices. Plus, stay up to date with webinars, regional meetings, and conferences, all while meeting CFPB presenters who can work with your organization. Use the link to join today.
Narrator (15:50):
Thank you for joining us as we explored disputing errors and submitting complaints. Join us now for our last module, Common Issues and Making Referrals.

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