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Credit reports are an indispensable part of today’s financial landscape. Lenders almost universally reference a consumer’s report to determine whether to initiate a loan and what the terms will be. Having accounts in collections, repossessions, bankruptcies, and other negative listings can signal that you are not “credit-worthy” to some institutions. If a credit report erroneously indicates someone is deceased, that will unequivocally signal to lenders that they are not eligible for loans and may even interrupt previously secured lines of credit. If you are dealing with a credit bureau reporting that you are deceased, contact the experienced consumer advocates at Maginnis Howard.
Credit reporting agencies (CRAs) collect information about your borrowing history from creditors, lenders, and public records to build a report about your financial history. A full report includes credit history, account information, balances, available credit, and payment history. CRAs will note loan amounts, balances on open accounts, a history of late payments, and items sent for collection. Lenders, landlords, insurers, and others purchase access to your credit report to make an informed decision about you.
A “deceased indicator” is a flag on your credit report indicating to credit bureaus that the person attached to the file is no longer alive. When credit bureaus see this indicator, they stop generating credit reports altogether. This might seem like a simple clerical error resulting in a minor inconvenience. However, being wrongfully reported as deceased can cause a consumer a chain reaction of issues.
Credit reporting agencies and furnishers that provide data may mishandle or misreport your personal information. Unfortunately, inaccurate credit reporting is all too common. A 2013 Federal Trade Commission audit found that one in five Americans had an error on at least one of their consumer reports. A few of the top ways you can be mistakenly reported as deceased on a credit reports include:
The SSA keeps a Death Master File that records everyone with a Social Security number who dies. A 2019 report found that the SSA mistakenly declares 7,000 – 12,000 people legally dead each year. Convincing financial institutions of your (living) identity can be an uphill battle if the government agency that issues identification, lists you as deceased.
A mixed (or merged) file occurs when two or more individuals’ information appears on a single report. This may occur with individuals with common names or those who share a name with someone else in the family (e.g., John Smith Jr. and John Smith Sr.), or with family members living at the same address who share similar Social Security numbers. If a person with a name similar to yours passes away, their death could be erroneously added to your report as well.
With the volume of information handled by creditors and credit reporting agencies, it is easy to see why mistakes can occur. A typo in a person’s name, a Social Security number with an incorrect digit, or a first name swapped with the last are among the most common.
Companies use automated and generative tools to parse large amounts of data quickly. If the results are not checked or verified by a human being, errors made by machines can end up in your report.
It may seem like a small error that can be easily remedied by notifying lenders. However, a person mistakenly reported as deceased not only has to prove they are still alive, but also deal with the fallout, such as:
Established in 1970, the Fair Credit Reporting Act (FCRA) promotes efficiency, accuracy, and privacy of consumer information. The law lays out the responsibilities of credit reporting agencies and the furnishers that provide the data, as well as the recourse a consumer has for errors. If you were mistakenly reported as deceased, several key points of the FCRA will apply to you:
Did You Know?
The largest credit bureaus in the nation (Equifax, Experian, and TransUnion) refer 85% of the disputes they receive to the original data furnishers.
Request copies of your credit report from the big three credit bureaus- Equifax, Experian, and TransUnion. Do this by visiting AnnualCreditReport.com. Be wary of any other site offering free credit reports, as they may be scams or may attempt to charge you for unnecessary services. AnnualCreditReport.com is the only source for free credit reports authorized by federal law.
Next, send a written letter to the credit bureau that is publishing the inaccurate information. You can start this process with Equifax, Experian, and TransUnion online or by mail. You will need to include copies of documents supporting your proof of life and personal identification, such as a government-issued ID. Visit the websites for each bureau to find the specific needs of that company, and the Consumer Financial Protection Bureau website for a sample dispute letter. We recommend sending the dispute via certified mail. That way, you have a paper trail in case you need to litigate your claim.
Whether the error originated with a credit data furnisher, such as a lender, or the Social Security Administration, you will need to contact the source directly.
A false deceased indicator is one of the most disruptive things that can appear on a report- not only does it deny your future financial opportunities, but it also threatens your existing financial security. Dealing with disputes and the back-and-forth with financial institutions can be a confusing and frustrating experience, on top of the stress of an inaccurate credit report. Maginnis Howard can help you dispute and, if necessary, file a lawsuit against the credit reporting agencies for damages.
The Fair Credit Reporting Act allows consumers affected by credit reporting errors and adverse actions to seek compensation. Damages under the FCRA can include actual financial losses, emotional distress, and up to $1,000 in statutory damages for willful violations. Each case is different, and your attorney will discuss what compensation you are eligible for and how much you may recover.
Maginnis Howard’s attorneys are fierce protectors of consumer rights across the Carolinas. Our attorneys have proven results of standing up to credit reporting agencies and furnishers for inaccurate credit reports, and recovering damages for the consumer’s harm. If you believe your Fair Credit Reporting Act rights have been violated, contact us today. We offer 100% free consultations for all credit reporting error cases, including false deceased indicators. Additionally, we accept cases on a contingency basis- meaning you don’t pay anything unless and until we recover compensation on your behalf.
For more information, contact our office at (919) 526 -0450 or submit a message through our contact page. We represent clients across the Carolinas from our Raleigh, Charlotte, and Fayetteville offices.
Credit scores are three-digit numbers derived from credit reports. Higher scores reflect better financial health and often expand borrowers’ economic options. The FICO Score is the most common, calculated based on five aspects of a person’s financial history: payment history, amounts owed, length of credit history, credit mix, and recent inquiries. When credit bureaus report a person as deceased, their score drops or disappears entirely.
If you have been mistakenly marked deceased by the Social Security Administration, you will have to arrange an in-person meeting and bring proof of identity. Notify an attorney if this situation applies to you for further guidance on removal from the Death Master File.
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