Credit reporting agencies making changes

A $6 million settlement between the nation's three major credit reporting agencies and Iowa Attorney General Tom Miller and attorneys general in 30 other states should make it easier to correct errors on credit reports.

Under the settlement, Equifax Information Services, Experian Information Solutions and TransUnion also must improve credit reporting accuracy and enhance consumer protections.

'We've had many complaints over the years about credit reporting agencies not fixing their own mistakes on peoples' credit reports, and it has been difficult - and in some cases impossible - for consumers to push them to correct it,” Miller said in a news release.

Miller said key provisions of the settlement include:

' Credit reporting agencies must implement an escalated process for handling complicated disputes, such as those involving identity theft and fraud.

' Each credit reporting agency must notify the other agencies if it finds that one consumer's information has been mixed with another's.

' Credit reporting agencies must send a consumer's supporting documents to the data furnisher.

' Credit reporting agencies are generally prohibited from adding information about fines and tickets to credit reports.

' Credit reporting agencies cannot place medical debt on a credit report until 180 days after the account is reported to the credit reporting agency.

' Credit reporting agencies must require debt collectors to provide the original creditor's name and information about the debt before the debt can be added to a credit report.

The credit reporting agencies will implement the changes in three phases to allow them to update their computer systems and procedures with data furnishers.

All changes must be completed by three years and 90 days following the settlement's effective date.