Correcting Credit Reports Takes Consumers on Catch-22 Trip: Resources for Debt-Ridden Americans

Having trouble with your credit report? Are items listed on it inaccurate. Are bills that have been paid years ago still showing as unpaid?
First, don't feel alone. Millions are having the same problem.

Second, it's highly probable that you're not going to get those things wiped off anytime soon, unless you're willing to spend a lot of money and hire a lawyer. Third, don't expect the Federal Trade Commission, the supposed watchdog agency that's set up to protect the consumer, to help you. There are three major credit-reporting companies: Experian, Equifax and TransUnion. These are private corporations that make money tracking the credit history of any person in the credit system. Borrowed money for a car? You're in their system. Have a credit card? You're in their system. Made a bank loan to put an addition on old Aunt Martha's house? You're in the system.

And make no mistake. These three companies ARE NOT government agencies. They are FOR-PROFIT companies, and they make a lot of money selling your credit reports to lenders, mortgage companies, banks, credit card companies, and just about anyone else, including yourself.

If you are late on a credit payment, it will get reported to one or all of these three companies, usually within a few days after the payment is due. If you catch up on that payment, it may take months, even years, to get that one late payment wiped off your credit report. To correct things, you can call whichever credit reporting company has incorrect information on your credit. Or you can write a letter to them.The Federal Trade Commission has thoughtfully provided a sample letter.

Don't get too excited though. That's about as far as you can go without hiring a lawyer. If Equifax, Experian and/or TransUnion disregards the letter, or only corrects some items and not others, there's not much you can do except write another letter.