This page explains federal law as it applies to people in New York, mainly the Fair Credit Reporting Act (FCRA), plus New York's own credit reporting statute where it adds something. KOR Law LLP's consumer protection practice represents consumers in FCRA claims against credit reporting agencies and furnishers for inaccurate or unverified reporting, and in disputes with credit card companies, debt collectors and mortgage servicers. The steps below are the ones that matter most if a dispute later becomes a lawsuit.

Who has to fix a credit report error?

Two different businesses are involved. The consumer reporting agency (the credit bureau) assembles the file and sells reports. The furnisher, usually a lender, card issuer, servicer or collector, supplies the information. The FCRA gives each its own duties when a consumer disputes an item:

  • The agency must conduct a free, reasonable reinvestigation to determine whether the disputed information is inaccurate, or delete the item, within 30 days of receiving the dispute, extendable once by up to 15 days if the consumer sends relevant information during the 30 days (15 U.S.C. 1681i(a)(1)).
  • The agency must notify the furnisher within 5 business days, passing on "all relevant information" the consumer provided (1681i(a)(2)).
  • The furnisher, after that notice, must investigate, review the information the agency sent, report the results, and correct, delete or permanently block inaccurate or unverifiable information, within the agency's deadline (15 U.S.C. 1681s-2(b)).

The order matters for a later lawsuit. The FCRA's private damages provisions do not apply to a furnisher's general accuracy duties under section 1681s-2(a), including disputes sent directly to the furnisher, but they do reach the duties a furnisher has after receiving notice of a dispute through a credit bureau under 1681s-2(b) (15 U.S.C. 1681s-2(c)). Disputing through the bureaus is what puts the furnisher's enforceable duties in play.

How do you dispute an error, step by step?

  1. Get your reports. The nationwide agencies must provide your file free once in any 12-month period on request through the centralized source (15 U.S.C. 1681j(a)).
  2. Mark each error. The Consumer Financial Protection Bureau recommends identifying each item, the account number, why it is wrong, and what you want corrected, with a copy of the report showing the disputed items highlighted.
  3. Send a written dispute to each bureau reporting the error, with copies (not originals) of supporting documents. The CFPB suggests certified mail with a return receipt to prove delivery.
  4. Calendar the deadlines. Thirty days for the reinvestigation, up to 45 if you send more information; 5 business days after completion for written results (1681i(a)(1), (a)(6)).
  5. Read the results. The agency must send a statement that the reinvestigation is complete, a revised report, and notice of your right to ask how the item was verified, including the furnisher's name and address (1681i(a)(6)(B)). It must provide that description within 15 days of your request (1681i(a)(7)).
  6. If it is not fixed, you may file a brief statement of dispute, which the agency may limit to 100 words, and later reports must note the dispute (1681i(b), (c)).
  7. Decide on next steps with the deadlines in 15 U.S.C. 1681p in mind.
FCRA dispute deadlines for credit reporting agencies
StepDeadlineStatute
Notify the furnisher of the dispute5 business days from receipt15 U.S.C. 1681i(a)(2)
Complete the reinvestigation30 days, extendable up to 15 days if the consumer adds relevant information1681i(a)(1)
Notice that a dispute is frivolous or irrelevant5 business days after that decision1681i(a)(3)
Written results to the consumer5 business days after completion1681i(a)(6)
Description of how the item was verified15 days after the consumer's request1681i(a)(7)
Notice that deleted information was reinserted5 business days after reinsertion1681i(a)(5)(B)

What if the bureau calls the dispute frivolous?

An agency may stop a reinvestigation if it reasonably decides a dispute is frivolous or irrelevant, including because the consumer gave too little information. It must tell the consumer within 5 business days, explain why, and identify what information it needs (15 U.S.C. 1681i(a)(3)). The fix is usually a new, specific dispute with documents. New York's statute adds that "the presence of contradictory information in a consumer's file shall not, in and of itself, constitute reasonable grounds for believing the dispute is frivolous" (General Business Law 380-f(a)); more on that law is in whether New York has its own credit reporting law.

Once an item is deleted, it cannot be put back unless the furnisher certifies it is complete and accurate, and the agency must tell you in writing within 5 business days if it is reinserted (1681i(a)(5)(B)).

When does a lawsuit make sense?

The FCRA allows suit against "any person" who fails to comply with its requirements. A willful violation can bring actual damages or statutory damages of $100 to $1,000, plus punitive damages and fees; a negligent violation brings actual damages and fees (15 U.S.C. 1681n, 1681o). The full menu of remedies, across statutes, is in what you can recover for a credit reporting or debt collection violation. A case may be filed in federal district court regardless of the amount, or in any other court of competent jurisdiction (15 U.S.C. 1681p); choosing between them is discussed in federal court or state court for a New York business dispute.

Common fact patterns include a paid or settled account still shown as delinquent, accounts from identity theft, mixed files that combine two people, and obsolete items. The FCRA bars most adverse items older than seven years, and bankruptcies older than ten (15 U.S.C. 1681c(a)).

What changes the answer?

  • Whether you disputed through the bureau. The furnisher's enforceable duties start with notice from the agency (15 U.S.C. 1681s-2(b), (c)).
  • The specificity of the dispute. Vague disputes risk a frivolous finding (1681i(a)(3)).
  • Willful or negligent conduct. Statutory and punitive damages require willfulness (1681n).
  • Timing. Suit must be filed by the earlier of two years after discovery or five years after the violation (1681p).
  • Proof of harm. Denials of credit, higher rates or lost opportunities support actual damages (1681o).
  • The age of the item. Obsolete information has its own rules (1681c(a)).

For example: a paid-off car loan still reported as late

For example, imagine a Queens resident who paid off a car loan in full last year but whose credit reports still show the account 90 days past due. (This is a made-up illustration, not a real client or result.) She is turned down for an apartment after a credit check. She pulls her free reports, finds the error at two bureaus, and mails each a dispute by certified mail with the lender's payoff letter and bank records (15 U.S.C. 1681j(a), 1681i(a)(1)).

Each bureau must notify the lender within 5 business days and finish within 30 days (1681i(a)(1), (2)). One bureau corrects the account; the other reports that the lender "verified" the late status. She asks that bureau how the item was verified, which it must answer within 15 days (1681i(a)(7)), and calendars two years from when she learned of the problem as the outside date to sue (1681p).

Common mistakes

  • Disputing only with the lender. Direct disputes do not trigger the duties enforceable through FCRA damages claims (15 U.S.C. 1681s-2(c)).
  • Sending originals. The CFPB advises sending copies and keeping originals.
  • A dispute with no details. It invites a frivolous finding (1681i(a)(3)).
  • No proof of mailing. Certified mail creates a record of when the 30 days began.
  • Waiting too long. The two-year discovery clock can run quickly (1681p).
  • Not keeping denial letters. They are often the best evidence of harm.

What to do this week

  1. Request your free reports from all three nationwide agencies.
  2. List each error with the account number and why it is wrong.
  3. Gather payoff letters, statements, police reports for identity theft, and correspondence.
  4. Mail a dispute to each agency reporting the error, by certified mail.
  5. Save every credit denial and adverse action notice.
  6. If the error survives the reinvestigation, speak with counsel about the deadlines.

If the bad entry comes from a debt collector, also read what a debt collector can legally do in New York.

Frequently asked questions

Will lenders see that I disputed an item?

If the reinvestigation does not resolve the dispute and you file a statement, later reports containing the item must note that you dispute it and include your statement or a clear summary (15 U.S.C. 1681i(b), (c)).

Can I dispute directly with the lender instead?

You can, and furnishers must investigate certain direct disputes (15 U.S.C. 1681s-2(a)(8)). But FCRA damages claims reach a furnisher's duties after notice from a credit bureau, not its direct-dispute duties (1681s-2(c)).

How long do I have to sue?

The earlier of two years after you discover the violation or five years after it occurs (15 U.S.C. 1681p). Other consumer statutes have different clocks; see how long you have to sue under the FCRA, FDCPA, or TCPA.

What if the error is on a mortgage account?

Mortgage servicers have separate error-resolution duties under federal mortgage rules; see how to make a mortgage servicer fix an error.

What if a court judgment shows on my report that I never knew about?

A default judgment from a lawsuit you were never properly served in may be challenged in court; see whether you can undo a default judgment in New York.

Does New York law give me more time to sue?

New York's credit reporting statute has its own two-year limit, measured from when liability arises (General Business Law 380-n). The interaction of state and federal rules is covered on our New York law page linked above.