Your Credit Report: What Does “Account Information Disputed By Consumer” Mean?

Your Credit Report: What Does “Account Information Disputed By Consumer” Mean?

“Account information disputed by consumer” in your creditor remarks section of your credit report means that you, as the consumer, have raised a dispute regarding specific information related to an account with one of the credit reporting agencies (CRAs). When you dispute an item on your credit report, you are notifying the CRA that you believe there is an error or inaccurate information associated with that particular account, and the creditor records that information.

The Fair Credit Reporting Act governs how credit bureaus must handle consumer disputes. They’re required to post  “Account information disputed by consumer” within five business days of receiving your dispute. These remarks appear on credit reports within thirty days and stay on your account until they stop getting reported (usually after seven+ years).

Some creditor remarks can affect your credit score, and others won’t. Generally, a creditor posts an “Account information disputed by consumer” remark because of an action you initiate, possibly because the creditor is reporting an account that isn’t yours or you’re the victim of identity theft, or there’s an error in the amount owed. If you are disputing a negative item and it is rectified, it is likely that this will affect your score positively. This creditor remark is never dated, so future creditors never know if your dispute was a month ago or four years ago. Further, they won’t know if your dispute was directed to your creditor or a credit bureau. What’s more, FICO doesn’t mention this in their overview of factors considered or not considered in credit scoring.

Credit bureaus and creditors must respond to your dispute within thirty days. However, your credit report doesn’t list the original dispute date, so there’s no way for a lender or scoring agency to calculate a dispute period. And despite contrary reports, credit scoring that uses false dispute periods to skip accounts and overinflate your credit score doesn’t exist. There’s no evidence anyone promotes this tactic. Imagine the disruption it would cause with credit repair companies and the credit reporting system.  With all of this said, potential lenders can’t wait for a resolved dispute if they can’t see when it’s disputed.

Here’s an overview of the process of consumer disputes:

• Disputing Inaccuracies: If you come across incorrect information, such as an incorrect account balance, a late payment that you believe was made on time, or an account that doesn’t belong to you, you have the right to dispute it with the credit reporting agency.
• Dispute Process: To dispute information on your credit report, you can contact the credit reporting agency either online, by mail, or by phone. Each CRA has a dispute process, and you will need to provide specific details about the item you are disputing and the reason for the dispute.
• Consumer Reporting Agency Response: When you dispute an item on your credit report, the credit reporting agency will initiate an investigation into the matter. They will contact the creditor or data furnisher (e.g., a bank or credit card company) responsible for providing the information and request verification of the disputed item.
• Verification Process: During the investigation, the creditor or data furnisher is required to review their records and provide the credit reporting agency with evidence to support the accuracy of the reported information. If they cannot verify the accuracy of the disputed item, it may be corrected or removed from your credit report.
• Dispute Resolution: The credit reporting agency will inform you of the results of their investigation and provide you with an updated credit report reflecting any changes made as a result of the dispute.
• Impact on Credit Score: If the disputed information is found to be inaccurate and is removed from your credit report, it could positively impact your credit score, depending on the nature of the item and its significance in your credit history.

Does “Account information disputed by consumer” meet FCRA requirements?

Yes, the creditor remark “Account information disputed by consumer” meets the requirements of the Fair Credit Reporting Act (FCRA) because when a consumer disputes information on their credit report, the FCRA requires the credit reporting agencies to include the remark to notify anyone viewing the credit report that a dispute has been raised regarding specific account information. This alerts potential creditors and lenders that the accuracy of the information is being questioned.

What if a mortgage lender does a manual review of my credit report?
There are rare cases when a person doesn’t qualify for a mortgage loan, and a lender does a manual review of their credit report. In this instance, the lender may have a question about “Account information disputed by consumer” in creditor remarks. Lenders know about identity theft and errors on credit reports, so this is an opportunity for consumers to be proactive about their credit health. It’s perfectly normal for a lender to ask for clarification during a manual review, but it should not have any impact one way or another.

It’s essential to review your credit report regularly and report any inaccuracies promptly. By doing so, you can ensure that your credit information remains accurate and up-to-date, which is crucial for maintaining a healthy credit profile. With SmartCredit, you can address items on your credit report directly with creditors, eliminating the need to go to each institution separately. Just click “Take Action” on your credit report!

Categorised in: Credit Monitoring, Credit Report, Credit Score, Getting Credit, Health Care, Improving Credit

This post was written by David B. Coulter