In today’s world, credit scores are turning out to be the difference in our lives, in every other aspect from securing a mortgage to landing a job. But there is always room for error, as errors crop up on credit reports to an extent that has affected millions of consumers in the country. Law firms such as RBT have stood by the protection of consumer rights under the Fair Credit Reporting Act (FCRA). We make sure that your credit report accurately reflects your financial history; it should be a true reflection of credit scores that protects your financial well-being and future opportunities.
What Is Factual Data on My Credit Report
Factual Data’s credit report is a fully detailed look at an individual’s credit history which has been compiled and sustained by the well-known credit reporting agency, Factual Data. This report is a vital component in lenders, landlords, employers, and other authorized parties to a person’s creditworthiness and financial reliability. Here is a closer view of what makes up a Factual Data credit report and why it carries such significance:
Components of a Factual Data Credit Report
Personal Information. This section comprises important identifying information for the person in question, such as their name, address, Social Security number, and possibly employment information. Importantly, these details are used to verify the identity of the subject whose credit report is to be examined.
Credit Accounts. A detailed display of open and closed credit accounts, including credit cards, mortgages, loans, and lines of credit. Typically, each account entry will show the date the account was opened, credit limit or loan amount, account balance, payment history, and the status of it (open, closed, delinquent).
Inquiry Information. Inquiries made on the credit files of the individual, whether soft or hard. Most often, hard inquiries are conducted when an individual tries to get credit, and they affect the credit score. Soft inquiries can include background checks for employment purposes or the personal credit checks, among others.
Public Records and Collections. It contains the information of an individual’s bankruptcies, foreclosures, liens, judgments, and accounts in collections. Such data may result in dropping credit scores and suggest the payability by the user.
Credit Score. Some Factual Data credit reports may even come with a credit score, a numerical representation of the individual’s credit risk factor as computed from their credit file.
The Factual Data Credit Check Process
The Factual Data credit check process is a core criterion for analyzing an individual’s creditworthiness by lenders, landlords, employers, or other entities seeking details on an individual’s credit reliability. This process involves several crucial steps that collect, analyze, and report credit information in a satisfactory manner. Being knowledgeable about this process can help an individual or business make informed decisions with respect to their credit possibilities.
Request Submission. The process starts when an authorized entity submits a request to Factual Data to check credit information. In most cases, this request is initiated by submitting an application for credit, employment, housing, or any other occasion where credit evaluation is necessary.
Applicant Consent. Upon receiving a credit request, Factual Data asks for the applicant’s consent under the Fair Credit Reporting Act (FCRA). This ensures that the process sticks to the legality of consumer rights and privacy.
Collection of Information
Gathering Information. Factual Data collects credit information from a number of sources, including all three of the major credit bureaus (Equifax, Experian, and TransUnion). This information includes credit accounts, payment history, credit inquiries, and public records like bankruptcies and court judgments.
Additional Verifications. Occasionally, Factual Data will perform additional verification checks depending on the kind of request being made by the requesting party. Factual Data may check for verification of employment history, education history, and other pertinent data points that will greatly contribute to a comprehensive credit profile.
Analysis and Reporting
Analysis of the Data. Factual Data uses advanced algorithms and analytical models to analyze the data. The analysis is made in the hope of being able to assess credit risk and generate a credit score, which is indicative of creditworthiness based on the credit history of a person.
Report Preparation. The analyzed data is compiled into a credit report, which documents a person’s credit history and other related information. This report provides in-depth and actionable insights to the requesting entity.
Reporting. The completed credit report will be provided to the requester of the credit check. The delivery will be done with consideration for security in order to protect the personal and financial information present in the report.
Usage. The requester entity uses the information provided in the Factual Data credit report to make informed decisions regarding the application of the individual. This could mean loan eligibility and terms for lenders, or employment decisions for employers.
Consumer Rights and Dispute Resolution
Review and Dispute. An individual can ask for a copy of their credit report from Factual Data with a review of accuracy. Any identified mistakes in such reports become a basis for dispute resolution, mandated under the FCRA.
On a general note, this same thorough, regulated approach to credit reporting ensures accurate assessments of creditworthiness while protecting consumer rights. This understanding is critical as it deals with maintaining one’s credit information and issues that may arise to ensure a person’s financial profile is properly represented.
Factual Data by CBC (Credit Bureau Connection)
Factual Data and CBC (Credit Bureau Connection) do not necessarily connote mergers or acquisitions, though it does imply some kind of collaboration or integration. Such an alliance could provide consumers with Factual Data’s credit information and verification services with more structured and accurate credit reports to show lenders—courtesy of this integration’s strengths. Herein lies a better understanding of what the partnership may entail and how it impacts consumers and businesses:
Enhanced Credit Reporting Solutions. The main purpose of this alliance is the betterment of the reporting framework. Factual Data, with its unsurpassed access to credit information and verification services, can be blended with CBC’s advanced technology and compliance solutions to come up with more structured credit reports. In essence, the partnership can avail more comprehensive credit reports that are both detailed and accurate, hence adding value not only to consumers looking for loans but to businesses requiring highly solid credit appraisals on clients.
Comprehensive Compliance Tools. This partnership focuses on compliance. CBC’s compliance tools help firms fully realize the FCRA and other laws regulating credit information. Adding these compliance solutions to Factual Data’s reporting services ensures that businesses comply fully with legal standards as they implement their credit reporting processes. It has direct implications on regulatory compliance within, for instance, the automotive financing industry, where regulatory review stays critical.
Technology Platform and Integration. The advanced functionalities of pulling credit reports, fraud detection, and identity verification, which are incorporated into the technology platform of CBC, can greatly enhance Factual Data’s broad base of comprehensive credit information. Integration makes the accessibility of credit information usable, streamlining decision-making processes and providing an excellent user experience for both businesses and consumers. The technology likely holds features that are easy to integrate with the lenders’ and dealers’ systems of using existing systems.
Businesses. The more detailed and accurate credit report will help in the making of lending or leasing decisions. The overall compliance tools also act as a safeguard against regulatory infractions, protecting businesses from costly lawsuits and regulatory penalties.
Consumers. Accurate and fair credit information assures that information reflects truthfully, thus benefiting consumers in getting more favorable credit decisions and better loan terms. Consumers are protected from the breach of their rights during the credit reporting process with compliance.
Efficienting the Credit Checking Process. The partnership between Factual Data and CBC would most likely make the credit check process easier. An integrated solution for credit reporting, verification, and compliance provides a one-stop-shop for all the information needed to check credit. With less amount of time and manpower required, this efficiency may offer faster loan approvals to businesses reliant on credit checks.
What Mortgage Company Uses Factual Data
For example, Carrington Wholesale rely on Factual Data for their credit reporting needs, but complete list of lenders leveraging Factual Data isn’t publicly available. Here is a detailed look at how mortgage companies utilize Factual Data and the process of identifying those that do:
The Role of Factual Data in Mortgage Lending
Factual Data comes in handy for mortgage lenders through providing them with detailed credit reports that consist of an applicant’s credit history, payment records, public records, and other financial details, all vital in making an informed decision regarding loan approvals, terms, and interest rates. The accuracy of Factual Data, the frivolousness, and the contentment of its reports are cherished for the depth it brings and the guidance it gives to those in the mortgage industry.
Why Mortgage Companies Choose Factual Data
Mortgage companies settle for Factual Data over the following reasons:
Comprehensive Reporting. Factual Data provides the most detailed credit reports that cover the full spectrum of financial information so as to give lenders a good indication of how financially the applicant behaves and his creditworthiness.
Regulatory Compliance. Factual Data ensures that all the credit reports adhere to the regulations that govern credit reporting under the Federal Fair Credit Reporting Act (FCRA), thus shielding lenders from litigations that might result due to improper credit reporting.
Customization and Integration. Factual Data services are flexible enough to accommodate the needs of the respective mortgage lenders and integration with the loan processing system of the lender for smooth operations.
Risk Assessment Tools. Besides providing regular credit reports, Factual Data facilitates lenders in obtaining advanced analytics and risk assessment tools that assist in identifying potential risks and fraud.
How to Discover Which Mortgage Companies Use Factual Data
Direct Inquiry. One of the simplest ways is to contact the lender directly and ask for information about their relationships with credit reporting agencies. In the US, many mortgage lenders are clear about which agencies are involved in their credit report histories.
Loan Application Materials. In most cases, loan applications ask for disclosures that will let the borrower know exactly what the mortgage lender is doing to get an understanding of the creditworthiness of the applicant.
Resources in the Industry. Professional networking in the real estate and mortgage industry may bring knowledge about the credit reporting partners preferred by some lenders.
Filings under Compliance and Regulatory. Sometimes, filing requirements or other material filings can reveal, at the outset, which mortgage companies are allied with different credit reporting agencies, like Factual Data.
Table of Common Errors in Factual Data Credit Reports
| Common Error | Description | Impact on Consumer | Suggested Remedy |
| Mistaken Identity | Credit information from another individual with a similar name or other identifying details appears on your report. | Could lead to unjustly poor credit scores or flags for fraudulent activity. | Dispute the incorrect information with Factual Data, providing documentation to prove your identity. |
| Incorrect Account Status | Accounts listed as open when they’ve been closed, or vice versa; payments marked late that were paid on time. | Can negatively affect credit scores and lending decisions. | Contact the creditor to correct the error; follow up with a dispute to Factual Data if not resolved. |
| Outdated Information | Information that should have aged off the report remains, such as a bankruptcy older than 10 years. | Keeps credit scores lower than they should be. | Dispute with Factual Data to have outdated information removed according to credit reporting time limits. |
| Duplicate Accounts | The same debt or account is listed multiple times, making it seem like you owe more than you do. | Inflates apparent debt levels, negatively impacting credit evaluations. | Submit a dispute to Factual Data requesting consolidation or removal of duplicate entries. |
| Fraudulent Accounts | Accounts you did not open are listed, indicating identity theft. | Significantly harms credit score and can lead to legal complications. | Report the fraud to Factual Data, initiate a fraud alert with the credit bureaus, and consider filing a report with law enforcement. |
| Data Mix-Up | Your credit file contains information that belongs to someone else, often due to a filing error or mistaken identity. | May result in denied credit or unfavorable terms. | Dispute the erroneous information with Factual Data, clarifying which parts of the credit report are incorrect. |
| Incorrect Public Records | Public records like bankruptcies, liens, or judgments that belong to another person are on your report, or paid judgments are listed as unpaid. | Damages creditworthiness unnecessarily. | Provide Factual Data with documentation showing the error, such as court documents or records of payment. |
| Inquiry Errors | Unauthorized or incorrect inquiries listed, suggesting credit checks that you did not initiate. | Each hard inquiry can slightly lower your credit score. Unauthorized inquiries may suggest fraud. | Dispute unauthorized inquiries with Factual Data, and if necessary, contact the inquiring creditor to understand the origin of the inquiry. |
How to Sue Factual Data for Inaccuracies in Credit Reports
Suing a credit reporting agency like Factual Data for errors in your credit report requires several steps designed to ensure the protection of your rights under the Fair Credit Reporting Act (FCRA). The FCRA gives consumers the right to accurate, complete, and verified information on their credit reports. Below is a list of steps you may take to pursue legal action against Factual Data for inaccuracies in your credit report:
- Review Your Credit Report
First, get a copy of your credit report from Factual Data to figure out where the inaccuracies are.
- Dispute With Factual Data
Before suing, there is a requirement for disputing inaccuracies with Factual Data. You should dispute inaccuracies by providing the company with all the accurate information and supporting documents.
- Document Your Dispute
It is important to maintain detailed records that include copies of communication, the dispute itself, and any supporting documentation you provided to Factual Data.
- Wait for Factual Data’s Response
Factual Data has 30 days to investigate your dispute and get back to you. They must either make any corrections or justify retaining the contested information.
- Consult an Attorney Protecting Consumer Rights
If Factual Data does not remove these inaccuracies, then you should seek consultation from an attorney who specializes in consumer rights and FCRA cases. An experienced attorney would advise you whether to file a lawsuit against Factual Data and would assess the strength of your case.
- Consider Legal Remedies
Your attorney may suggest specific legal remedies, which could include suing Factual Data in federal court for damages that resulted from the inaccuracies in your credit report.
- File Your Lawsuit
If you decide to proceed, your attorney will file a lawsuit against Factual Data. Your suit should detail the inaccuracies, your efforts to dispute them, Factual Data’s failure to correct them, and any damages you suffered as a result.
- Ready Yourself for Court Proceedings
Work closely with your attorney in preparing your case for court. This may include the collection of more evidence, preparing testimony, and understanding the legal arguments at play.
- Settle or Go to Trial
Often, undercutting and otherwise settling cases may occur if Factual Data does not resolve the inaccuracies. If no settlement is reached, then prepare yourself for going to trial, where a judge or jury will hear your case.
- Post-Judgment Actions
If the judge rules in your favor, follow through on any necessary actions to ensure that the judgment is enforced, which may include having the inaccuracies finally corrected or receiving monetary compensation.
Are the errors in your credit report really harming you? Were your efforts with Factual Data denied settlement? Do not attack this challenge on your own. RBT is here for you. Our experienced consumer rights attorneys offer expert guidance and rigorous legal representation to challenge errors on credit reports and to fight for the justice you deserve. Whatever it is, whether correcting inaccuracies or compensation, we stand with you every step of the way. Contact us today for a consultation and take the first step toward restoring your credit integrity. Your financial future is worth fighting for—let’s take this together.
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