Common Causes for Credit Report Errors
This is still one of the fastest growing crimes in America.
Mixed up information.
This kind of error occurs between different people with the same name. For example, Bob Smith who lives in Montana may have his credit information placed on Bob Smith who lives in Arizona. This is a very common mistake. This also happens a lot between fathers and sons with the same name, especially when they both live under the same roof.
Discrepancies among credit reporting agencies for the same debt.
One credit reporting agency may report a debt as current while another might report it as delinquent.
Delinquencies that are reported longer than 7 years.
Generally speaking, derogatory credit information has to be removed from your credit report after 7 years from the date of first delinquency. Sometimes a debt buyer or a collection agency may re-age the date of last delinquency so that negative information stays on your credit report longer than seven years. In 2004, the Federal Trade Commission hit NCO Financial Systems with a $1.5 million fine for doing this very thing. It’s illegal.