When applying to finance a car, opening a credit card, or even renting an apartment, you’ll likely need to submit to a credit check so the lender can determine whether or not you are a good candidate. However, instead of receiving your approval notice, you may be disheartened to find an adverse action notice instead. If you’re unsure what is included in this notice or what your next steps should be, you’ll want to keep reading. The following blog explores what you should know, as well as the importance of working with a Michigan credit report error lawyer to discuss your options.
What Is an Adverse Action Notice?
When you submit an application for a loan or housing, you will be subject to a credit check to ensure you are a good candidate for the lender. In the event the creditor discovers information, such as a recent bankruptcy filing, a multitude of late payments, or a considerable amount of debt, you may be deemed a risk to lend to and issued a subsequent denial. Under the Fair Credit Reporting Act and Equal Credit Opportunity Act, an organization that denies your application due to negative information on your credit report must send an adverse action notice informing you of the information that led to your denial. In addition, they must provide additional resources to help you understand the decision.
Can I Dispute the Findings?
If you receive an adverse action notice and a loan denial, it’s imperative to review your credit score. When this notice is issued, you’ll find that you can request a free copy of your credit report from the agency the creditor used to examine your borrowing history within 60 days of the decision. By examining your credit report, you can review the information to ensure everything included in the report is correct.
In the event you discover inaccuracies on your credit report that you believe have impacted the outcome of your loan decision, you can take steps to dispute the inclusion of these errors on your credit report. Typically, the first thing you must do is print a hard copy of the report and highlight the mistakes. Next, you’ll need to gather supplemental documentation that substantiates your claims of an error. Once you have the necessary documents, you can write a letter explaining the error and why it’s incorrect, and ask them to remedy the error. After the reporting agency receives the report, they have 30 days to conduct an investigation and fix errors.
Unfortunately, you may find that credit reporting agencies can be less than helpful despite the important role your credit report plays in your life as a consumer. As such, it’s in your best interest to connect with an experienced attorney with Lyngklip & Associates to discuss your legal options during these complicated times. Our firm understands how frustrating it can be to be denied based on incorrect information, which is why we will do everything in our power to help guide you through this process. Contact us today to learn how we can fight for you.
