How to Dispute a Credit Report Error

Disputing a credit report error might seem daunting, but it is a straightforward process once you understand the steps involved. If you have identified a mistake on your file, taking action is essential to protect your financial standing. Ignoring the problem will only lead to rejected applications and higher borrowing costs over time.

The law provides clear mechanisms for consumers to challenge incorrect data. Credit reference agencies and lenders must investigate disputes and correct any proven inaccuracies. You do not need to hire an expensive credit repair company to do this for you. The entire process is free and can be completed online.

Step 1: Gather Your Evidence

Before you raise a dispute, gather all relevant documentation to support your case. If a lender claims you missed a payment, find the bank statement proving the money left your account on or before the due date. If an account does not belong to you, collect evidence of your address history to demonstrate you did not live at the registered property when the account was opened.

Having solid proof makes the investigation process much faster and significantly increases your chances of a successful outcome. Keep copies of all correspondence and make a written note of any phone calls you have with lenders or agencies, including the date, time, and name of the person you spoke to.

Step 2: Contact the Credit Reference Agency

You can raise a dispute directly through the credit reference agency's website. Experian, Equifax, and TransUnion all provide online dispute forms where you can explain the error and upload your evidence. Once submitted, the agency will contact the lender who provided the data and ask them to verify it.

The lender has 28 days to respond. If they cannot prove the information is accurate, or if they confirm a mistake was made, the agency will remove the error from your report. Your credit score should then improve to reflect the corrected information.

Step 3: Escalate if Necessary

If the lender insists the data is correct but you have strong evidence to the contrary, you can add a Notice of Correction to your file. This is a statement of up to 200 words explaining your position, which all future lenders must read before making a decision.

You can also take your complaint to the Financial Ombudsman Service if you believe the lender has acted unfairly. The Ombudsman is a free, independent service that can order lenders to correct errors and pay compensation where appropriate.

For a ready-made letter you can send directly to the lender, download our free dispute letter template.